Adding Value Through Internal Audit: Looking Around the Corner (Part 3/3)

Adding Value Through Internal Audit: Looking Around the Corner (Part 3/3)

Welcome back to the final part of our series, "Adding value through Internal Audit." We've explored how internal audit acts as a navigator helping manage risks (Part 1) and as a mechanic helping make processes run better (Part 2). Today, we wrap up by discussing perhaps one of the most forward-thinking ways internal audit adds value: providing strategic insight and helping the organisation look around the corner.

It's a common misconception that internal audit is only focused on looking back at what's already happened, checking for past mistakes or existing problems. While reviewing the past is part of ensuring things are under control now, a truly valuable internal audit function also has its eyes firmly fixed on the horizon.

In today's fast-paced world, new challenges and opportunities are constantly emerging. These could be anything from evolving cyber threats, changes in regulations, shifts in customer expectations, or the exciting but complex process of launching a new product line or entering a new market. These are all areas loaded with potential risks and the need for effective controls, and they are fertile ground for internal audit to provide proactive support.

Internal audit can engage with leadership and project teams early on when new initiatives are being planned. By reviewing the design of controls in these new areas before they are fully implemented, audit can help spot potential pitfalls, inefficiencies, or control gaps that might otherwise only be discovered much later, when they are more costly and difficult to fix.

Furthermore, internal audit is uniquely placed to look across the entire organization and see how different risks and processes might impact the company's overall strategic goals. Are the current control frameworks robust enough to support ambitious growth plans? Do emerging risks like climate change or supply chain disruptions pose a significant threat to future strategies? Audit can provide objective insights on whether the planned path forward is considering all potential bumps in the road.

This kind of proactive, forward-looking work helps leaders make more informed decisions, navigate uncertainty with greater confidence, and ensures that the strategies they are pursuing are built on solid ground. Internal audit becomes less of an "examiner" and more of a trusted advisor, helping the business anticipate challenges and capitalise on opportunities by ensuring necessary safeguards are considered from the outset.

In conclusion, internal audit is far more than just a historical reviewer or a compliance checker. Its ability to look ahead, assess emerging risks, evaluate controls in new ventures, and provide insights aligned with strategic objectives offers significant value. It helps organisations not only protect themselves today but also build a more secure and successful future.

Through helping manage risks, improving operational processes, and providing crucial forward-looking strategic insights, internal audit plays a vital, positive role in helping organisations achieve their goals and thrive in an ever-changing environment.