Recently I participated in a Conference on Internal Audit. One of the recurrent theme across session was “Culture”. How culture of an organisation impacts Internal audit and how an internal auditor can make impacts on the organisation culture to have a right culture. This is my point of view on some of the questions raised.
1. What is the role of internal audit in shaping culture/ how internal audit can impact culture?
Internal audit while doing assurance and/or consulting assignment can check the pulse of the organisation. Whether the policy and procedures are being followed in “letter” or in “spirit”. As someone who is dealing with all levels of organisation, internal audit are well positioned to assess the organisation culture.
2. How to convince the management the need of internal audit as the law has not given any power to the internal audit?
Management can be convinced only by demonstrating the value of internal audit. To understand what is the value of internal audit “in the eyes of the management” you need to communicate with management and keep communicating with management. Communication here refer to communication beyond the scope of assignment, having proactive meeting with management to understand what is their concern, areas where internal audit can help management either by assurance or consulting assignment. If nothing else meeting over a cup of tea and trying to build bonds.
Its like respect which need to be earned and not positional.
3. What should internal audit do when the culture of an organisation is not good?
When internal audit assesses that organisation’s culture is not good? he can do one of the following:
- Make attempts to change the culture. One of the way is to asking right questions to the right persons
- Being fair. Its like becoming a lighthouse in a cloudy day.
- If regulations / law requires, internal audit to blow the whistle, blow the whistle.
- Move out.
IIA has comeout with a good perspective on Auditinc Culture in “Global Perspectives and Insight” Issue 3: February 2016. IIA Member can download the same from here: Auditing Culture – A Hard Look at the Soft Stuff
Call for action:
Inputs/ comments/ suggestion: I welcome inputs/ comments / suggestions from readers on how to approach this issue. Feel free to correct me, educate me.
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(Disclaimer: The views expressed constitute the opinion of the author and the author alone; they do not represent the views and opinions of the author ’s employers, supervisors, nor do they represent the view of organizations, businesses or institutions the author is, or has been a part of.)