29 Oct The Evolving Role of the CAE: Taking on Compliance and ERM

Year of Publication: 2015
Member Price: RM 200
Non-Member Price: RM 335
No of Pages: 44

The Evolving Role of the CAE: Taking on Compliance and ERM
By: Margaret H. Christ, PhD, CIA, and Michael Ricci, CPA

Drawing upon their broad knowledge, today’s chief audit executives may be called upon to assume expanded responsibilities outside of traditional internal auditing. This report explores the benefits and challenges from different perspectives.

Chief audit executives (CAEs) occupy a unique position within their organisations with a comprehensive understanding of a number of business facets, including risks and controls, the company’s long-term strategy, industry sector, and regulatory environment. This knowledge and experience make the CAE an attractive candidate to assume additional organisational responsibilities beyond traditional internal auditing, from risk management and compliance roles to personnel development or conferring on the company’s business strategy.

The Evolving Role of the CAE: Taking on Compliance and ERM explores the benefits and challenges—to the organisation, internal audit department, and CAE—of these expanding roles.

  • What responsibilities are CAEs currently taking on outside of their traditional internal audit role?
  • Why have some organisations expanded the responsibilities of the CAE?
  • Does the role of the CAE vary by the organisation type (e.g., by sector or industry)?
  • What are the perceived benefits and challenges associated with expanding the CAE’s role?

For some CAEs, the challenges associated with having expanded responsibilities are mitigated through various compensating controls and practices. This research describes some of these mitigating practices and how CAEs with expanded roles can continue to strike the appropriate balance between value-added activities and their independent assurance responsibilities.