Relationships of trust
Relationships, in general, can be tricky and uncertain. Therefore, IIA presents a position paper that aims to improve connections between the audit committee and internal audit. This specific paper focuses on the relationship between the audit committee and the chief audit executive. Through clear guidelines concerning demands and expectations, confusion is prevented between the actors.
The paper points out some key takeaways. Firstly, the audit committee should demand and empower the CAE and internal audit to act independently and be willing to ”speak truth to power”. Secondly, the audit committee should be prepared to challenge the CAE and internal audit buy also be willing to stand with them, rather than behind dem. Thirdly, the audit committee should demand the CAE and internal audit activity meet IIA Standards, be trusted advisors, and represent the audit committee in their efforts. Lastly, the audit committee should meet regularly with the CAE to discuss strategic and operational activities.