Role of Internal Auditing in Governance
Synopsis
Internal auditing operates in two capacities – providing independent assessments and as catalysts
of change. The more mature an organization’s governance processes the more internal
auditing can focus on the overall process. Internal auditors can ‘    assist organizations
better by advising the board of directors and executive management on needed improvements
and changes in [governance]structure and design    ’. Today’s cutting edge internal
auditing should be more concerned with governance frameworks, not just compliance with
specific parts.
Extract with permission from Organizational Governance: Guidance for Internal Auditors (2006).
Copyright 2004 by The Institute of Internal Auditors, Inc., 247 Maitland Avenue, Altamonte
Springs, Florida 32710-4201 USA. Reprinted with permission.
After Reading the Case Study Consider:
1. Do your internal auditing services operate in the two capacities described – ‘independent
objective assessments’ and ‘catalysts for change’?

2. Are the qualifications of your internal auditors appropriate for both the capacities
described?
3. What is your organization’s governance maturity level?
4. Have you identified and assessed the effectiveness of your organization’s governance?