01 Feb The Politics of Internal Auditing

Year of Publication: 2015
Author: Dr. Larry Rittenberg and Patty Miller

Learn to Effectively Navigate Political Challenges to Add Value to Your Organisation

Organisations are, by definition, political. They are composed of people who have different individual goals and objectives, different value systems, different approaches to accomplishing their objectives, and different motivating reward systems. When it comes to internal auditing and the reality that internal audit results may reflect badly on some individuals, the potential for political pressure on the Chief Audit Executives (CAEs) are great. Effective CAEs must recognise the signs and learn how to manage effectively through political challenges if they are to be persuasive in helping their organisations navigate through risky decisions, or even in reporting audit results in the face of significant challenges.

This research report addresses political pressure on CAEs and their internal audit departments. Surveying nearly 500 CAEs from various business sectors around the world, researchers Patty Miller and Larry Rittenberg share how effective CAEs work to mitigate political pressure and lessons learned that may help manage political pressure. This book is expected to offer helpful insights, suggestions, and useful examples for internal audit leaders. The board of directors, audit committee members, executives, and internal audit practitioners can also learn from this research and understand their role in helping the CAE through political challenges.

Due to the nature of organisations—and basic human nature to succeed and be respected—political pressure will undoubtedly always be a risk in any organisation. This research points out some things that can be done to strengthen the culture, improve the governance structure, and build support for internal auditing.