How can internal audit drive value beyond assurance?

Audit & Assurance
Business Growth
Planning

In many organisations, internal audit is still seen in a traditional way: a function that checks controls, issues reports and moves on to the next item in the plan.

However, the expectations from boards and executive teams have shifted significantly. With faster-moving risks, ongoing digital change and increasing scrutiny, internal audit has the potential to offer much more than assurance.

Can internal audit provide forward-looking insight, not just historical assurance?

Internal audit has access to a valuable asset: insight across the organisation. Through its work across audits, functions and processes, it can identify patterns others may not see.

Moving from a retrospective view (“what went wrong?”) to a more forward-looking perspective (“where could issues arise next?”) helps leadership stay ahead of risk. This can include:

Early warning indicators of emerging risks
Scenario-based insights
Trend analysis across control weaknesses
Use of data and analytics to anticipate issues based on past findings

How can internal audit act as a catalyst for operational improvement?

The most valuable audit teams help the organisation identify opportunities to streamline, simplify, automate and improve. This goes beyond “issue and action” logs. Instead, audit can:

Highlight inefficiencies that create unnecessary cost
Share benchmarking from other parts of the industry
Recommend process redesign, not just control redesign
Facilitate root cause workshops with the organisation
Encourage technology adoption where it drives measurable benefit

With all of the above, our Internal Audit team can draw upon the wider network of specialist teams within Price Bailey to provide practical advice on systems, procedures, software and taxation. Being partnered with an Internal audit provider within such a network serves to bring synergies to the process; together with providing up to date, reliable advice from a sector expert.

How can internal audit shift from auditors to trusted advisers?

Trusted advisers:

Ask the right questions early
Challenge with empathy
Partner without owning decisions
Understand the organisation deeply
Focus on solutions, not problems

Internal audit’s independence should be viewed as a strength. At Price Bailey, our Audit & Assurance team are well placed to ask the difficult questions, or review contentious issues.

For example, our team have completed reviews into known or suspected fraud, providing conclusions to the Board; and making recommendations to mitigate the same issues occurring in the future.

We have also been appointed to review proposed changes to governance arrangements; pulling together data from across complex entities to highlight concerns and propose solutions to ensure the best outcomes for all parties.

Final thoughts

Organisations are operating in an environment where risk is increasingly complex, fast-moving and interconnected. While traditional assurance remains a core part of Internal Audit’s role, it is no longer sufficient on its own.

The most effective Internal Audit functions go further by helping organisations think differently about risk, culture and performance. They provide insight, offer challenge and support better decision-making.

We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.

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