20 The Audit Function: Selection, Training & Development and Ways of Working

No matter how good the CAE may be, without a strong team it will be an uphill struggle to create the sort of audit function that can take the lead in the lean progressive ways described in this book.


Many internal audit functions are located within the finance function, with the CAE reporting to the Chief Finance Officer for administrative purposes, with a dotted line to the Chair of the Audit Committee. Variants on this theme will be when the CAE reports into either a head of assurance or a senior legal or compliance officer. More recently, a growing number of CAEs are now reporting directly to the Chief Executive Officer. This has been especially notable in the financial services sector, prompted by various reviews looking at the lessons learned from the 2007–2008 financial crisis.

Against this backdrop, the majority of internal audit staff will be qualified accountants, some of whom may have an internal audit qualification. Depending on the nature of the organization, the audit function may also have specialists in IT, fraud or a background in compliance or risk management. Depending on the organization, the audit function may also include staff with backgrounds in engineering, insurance, banking or project management.

Typically, non IIA qualified staff within the audit function will receive some basic induction training on internal auditing and then ...

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