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“Board Directors
- Needs and the Internal Auditor”
Vicki Harnish, CPA, ICD
Board Director, Chapter Member
April 25, 2019
Boards are Accountable to act in the best
interest of the corporation
• Approve the strategic plan and oversee its
implementation
• Identify major risks and ensure appropriate
systems are in place to manage these
risks
• Provide oversight to the operations
• Select and hire the CEO
• Ensure appropriate talent management
and succession planning
Internal audit supports the Board
- assurance, information, advice
• Objective assurance on quality of controls
in place to manage risk
• Recommends measures to improve
effectiveness of risk management, control
and governance processes
• Risk identification – reporting significant
residual risks to management & Board
Maximizing value to the Board
• Really understand the organization
– audit plan to address highest risk area
– pointing out risks to management and
bringing high risks to Board
– using risk knowledge to support/challenge
strategy
Maximizing value to the Board
• Support significant organizational changes
– Consulting engagements
• readiness assessments
• advice on programs under development
• lessons learned
– Partnering with evaluation
• broader assessment, can report on program effectiveness
Maximizing value to the Board
• Values and ethics
– targeted audits
– lense in regular audits
– fraud and wrongdoing
– observation and listening
Maximizing value to the Board
• Identifying systemic risks
– risks that affect several program areas
– risks where programs are interdependent
– risk trends
Maximizing value to the Board
• Audit follow-up
– reporting on status of action plans
– verifying completion
– highlighting outstanding actions with high risks
Where care is needed
• Relationships
– trusted partner – SLT, line, ERM
– independent and objective – choosing and
performing audits
– streamlined and efficient service
Where care is needed
• Communication
– respectful approach
– unbiased and balanced, clear reporting
– timely
– best practice vs policy
– respecting innovation and risk tolerance
Where care is needed
• Cost
– full cost identification
– good value for money
• Performance metrics
– targets, benchmarks
Final thoughts
• Most Boards recognize the benefits from
appropriate use of internal audit.
• If the CAE feels unsupported or overlooked,
make this known to the appropriate Board
member
• Remind us that you can be most effective if
you have regular access to and input from
Board members.