Domain I starts with a Purpose Statement — Internal auditing strengthens the organization’s ability to create, protect, and sustain value by providing the board and management with independent, risk-based, and objective assurance, advice, insight, and foresight. It combines elements from the current Definition of Internal Auditing and the Mission of Internal Audit. The Purpose Statement also includes a list of the conditions necessary to optimize the benefits from internal auditing such as how internal auditing contributes to improvements in organizational performance and the circumstances under which internal auditing is optimized.
Domain IV focuses on the chief audit executive’s responsibility for managing the internal audit function in accordance with the internal audit charter and Global Internal Audit Standards. This responsibility includes strategic planning, obtaining and deploying resources, building relationships, communicating with stakeholders, and ensuring and enhancing the performance of the function. The specific job title and responsibilities may vary across organizations. The chief audit executive may delegate appropriate responsibilities to other qualified professionals in the internal audit function while retaining ultimate accountability. The direct reporting relationship between the board and the chief audit executive enables the internal audit function to fulfill its mandate.
Learning objectives:
- Understand the relevance and importance of the Purpose Statement, (Domain I) from both a chief audit executive and a practicing internal auditor’s perspective.
- Learn how Domain IV (Managing the Internal Audit Function) will enhance communication between the chief audit executive and the internal audit functions stakeholders.
- Discuss the importance of the chief audit executive creating a strategy to position the internal audit function to fulfill its mandate and achieve long-term success (Domain IV).
- Identify how the chief audit executive is responsible for the internal audit function’s conformance with the Global Internal Audit Standards and continuous performance improvements.