One of the major changes is relates to the clarity around the position of Internal Audit (IA),
Question:
One of the major changes is relates to the clarity around the position of Internal Audit (IA), the third line in the structure. Previously, IAA considered IA as reporting to both Senior Management and the Governing body / board of directors. In the new model audits reporting lines are clearly defined as directly to the governing body, typically an independent audit committee. IAs independence, can be one of the major challenges with the model as IA is encouraged to help provide guidance on risk issues and to be a trusted partner when it comes to strategic risk; however, this without assuming some degree of management responsibility can be challenging. Under the new model, one of the aims was to rectify this by aligning IAs reporting lines away from senior management and clarifying that it should be a to board oversight level.
Please discuss your thoughts about the above paragraph? do you agree or disagree? what do you think?