Should organisations have a good handle on the number of outside audits that are performed on the organisation? Given that it’s not in the internal audit charter to monitor that activity, chances are the answer is no. But if the internal audit function can recognize that outside audits serve as an unavoidable distraction to management, and can help in providing value and organisational cost by inserting themselves into the equation, then it’s time to step and tackle the challenge at hand.
It’s a lot easier said than done, but if internal audit can develop a framework to monitor and prepare for outside audits, as well as address the findings, they’ll be one step closer to remaining relevant and continuing to add value to the business, says Thomas Sanglier, Director, Internal Audit, at Raytheon.
At MISTI's recent US SuperStrategies Conference & Expo in Las Vegas, Nevada, Sanglier led a discussion on this topic, providing other internal auditors with tips on how they can begin the process of tackling the number of outside audits occurring outside of the organisation. When it comes to first taking the task on, he stresses the importance of prioritising the ones that carry the most important since those will likely require most of your attention and time.
“Try to understand which audits are most important,” Sanglier told Internal Audit Insights. “There are a number of audits, but they don’t all carry the same significance in terms of severity to the company, impact to operations, and repetitional risk.”
In this video interview, Sanglier discusses the positive impact that the internal audit function can make when it comes to handling outside audits, the challenges this task can present, and how to overcome them.