A well-developed strategy can transform the internal audit function from a compliance checkpoint into a trusted advisor that drives organizational success.
In today’s dynamic business environment, internal audit functions are increasing their roles to not only assess controls but to deliver strategic value. According to the Institute of Internal Auditors (IIA), strategic planning is not just a best practice; it’s a requirement under Principle 9 of the Global Internal Audit Standards.
The Benefits of a Strong Internal Audit Strategy
A strong strategy enables the internal audit function to:
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- Align with the organization’s mission, goals, and evolving risks
- Anticipate future challenges and proactively address them
- Allocate resources efficiently to areas of highest impact
- Elevate the function’s relevance and influence across the enterprise
- Foster continuous improvement and innovation
- Demonstrate measurable contributions to organizational performance
A well-thought-out strategy is the key to adding value.
Building a Value-Driven Strategy
The IIA has published a Global Practice Guide entitled Developing the Internal Audit Strategy, which details a six-step process for creating an internal audit strategy designed to deliver value.
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- Vision: Establish the future vision of the internal audit function. This sets the tone for how the function will work to meet stakeholder expectations, articulate priorities, and promote continuous improvement.
- Strategic Scan: This step is all about understanding the internal audit function and identifying factors that may impact how it operates. This includes assessing internal and external environments to identify trends, risks, and opportunities.
- Analysis: Using the results of the strategic scan, compare the current state with the desired future state. This can be accomplished through various techniques, including SWOT analysis, gap analysis, or scenario analysis, which reveal where the function can improve and where it can add the most value.
- Strategic Objectives and Initiatives: Set clear goals and actionable steps that move the function toward its vision. These initiatives should be aligned with enterprise risk and performance priorities.
- Communication: Share the strategy with stakeholders to build buy-in and reinforce the function’s role as a strategic partner.
- Review and Revise: Monitor progress and adapt the strategy as needed. This ensures the internal audit function remains agile and continues to deliver value over time.
A strong internal audit strategy provides a vital foundation that helps shape the organization’s direction and drive its success. It empowers the function to go beyond assurance and become a driver of organizational resilience, performance, and trust. By investing in strategic planning, internal audit leaders position their teams to deliver insights that matter, create lasting influence, and drive continuous value.
How Can Schneider Downs Help?
Schneider Downs can help your organization transform internal audit from a compliance checkpoint into a strategic partner by building future-focused strategies, identifying opportunities for greater impact, and equipping your team to deliver insights that drive performance, resilience, and trust.
For more information, contact our team at [email protected].
About Schneider Downs Risk Advisory
Our team of experienced risk advisory professionals focus on collaborating with your organization to identify and effectively mitigate risks. Our goal is to understand not only the risks related to potential loss to the organization, but to drive solutions that add value to your organization and advise on opportunities to ensure minimal disruption to your business.
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