Internal Audit Quality

Chapter 7Areas of Responsibility and Nature of Work

A desk is a dangerous place from which to view the world.

—John Le Carré

The look and feel of the internal audit function will vary considerably between organizations. High-priority areas in some organizations may have little or no relevance in others. Similarly, the types of engagements undertaken will change between organizations. Ultimately, areas of responsibility and the nature of internal audit's work must link back to the organization's strategic priorities and risks. To understand these drivers, the chief audit executive must first have a thorough understanding of the organization, and this is best achieved by talking with management and viewing operations firsthand.

Internal audit engagements are generally divided into assurance and consulting engagements. While better practice requires that internal audit functions undertake both these types of engagements, there is a tendency for some internal auditors to focus on assurance engagements at the expense of consulting engagements. This reduces the potential value that internal audit can provide to an organization.

Types of Engagements

The IIA defines internal audit as “an assurance and consulting activity.” Responsibilities of each internal audit function will vary considerably, depending on the size, nature, and maturity of both the internal audit function and the organization in which it operates and the resources available to the internal audit function. However, ...