Title: Navigating the Unexpected: Setting Up an Internal Audit Program as a New Hire
Starting a new role can be an exciting yet challenging endeavor, especially when unexpected responsibilities come your way. As a newly appointed internal auditor in a non-management position, I found myself in such a situation when my employer asked me to establish the entire internal Audit program, complete with a budget and charter. Typically, these crucial tasks fall under the remit of executive management, but here I was, tasked with laying the groundwork for this pivotal function.
This unexpected opportunity has given me a platform to delve deep into the intricacies of Audit program development. It’s an important task that involves setting clear objectives, designing comprehensive financial plans, and formulating a robust charter that aligns with organizational goals. While this might traditionally be assigned to executives, tackling this challenge allowed me to expand my skills and play a pivotal role in molding the future of our audit processes.
Taking on such substantial responsibilities has been both daunting and rewarding. It underscores the importance of possessing a proactive mindset and the willingness to transcend conventional role boundaries in pursuit of career growth and organizational advancement. In the ever-evolving landscape of corporate structures, adapting to new challenges is not just beneficial, but essential.
One response
Congratulations on your new position! It sounds like you’re facing an exciting challenge with setting up the internal Audit program. While it might seem like an executive’s task, your involvement in this foundational phase is actually a significant opportunity for professional growth and impact.
Clarify Expectations and Roles: First, seek clarity on your role’s expectations. While the creation of a budget and charter typically involves input from executives, your role might be to draft initial proposals for their review. Schedule a meeting with the leadership team to discuss the scope of your work, and ensure alignment on the strategic objectives of the internal Audit function.
Consult Existing Frameworks: Before drafting anything, familiarize yourself with existing frameworks and best practices. The Institute of Internal Auditors (IIA) provides valuable resources, including templates and guidelines for creating a robust internal Audit charter and budget.
Draft an Internal Audit Charter: The charter sets the foundation for your department. It should clearly define the purpose, authority, and responsibility of the internal audit function. Ensure it aligns with organizational strategies and governance structures. Present a draft to management that outlines how the internal audit will add value and enhance organizational operations.
Build a Budget Proposal: For budgeting, consider the scope of audits, resources needed, staff, technology, and any external consulting. A zero-based budgeting approach can help justify each cost by linking expenditures directly to audit plans and objectives. Engage with finance or Accounting departments to align your budget proposal with the organization’s financial planning.
Engage with Stakeholders: Engage early and often with key stakeholders, including executives, human resources, and IT, to gather input and buy-in. Their insights can help refine your plans and ensure alignment with organizational goals.
Emphasize Training and Development: As you set up the internal audit program, consider including training and professional development in your plans. An investment in your skills and your team’s expertise will pay dividends in building an effective audit function.
Iterate and Refine: The initial setup of the audit program is a learning experience. Be prepared to adapt and refine your plans based on feedback from stakeholders and as the organization evolves. Establish mechanisms for continuous improvement.
By taking these proactive steps, you demonstrate your capability and initiative, which are likely why your employer entrusted you with this important task. While executives provide oversight and strategic direction, your detailed understanding and groundwork will be invaluable to the credibility and effectiveness of the internal audit function. Good luck!