As organisations navigate an increasingly complex risk environment, the audit committee has become a central pillar of corporate governance. Charged with overseeing financial integrity, risk management, and compliance frameworks, audit committees rely heavily on the internal audit function—particularly the Chief Audit Executive (CAE)—to provide assurance, insights, and foresight. Understanding audit committee expectations is therefore essential for internal audit leaders aiming to deliver maximum value.
- Independent and Objective Assurance
The foremost expectation of any audit committee is clear: internal audit must provide independent, unbiased assurance. The committee looks to internal audit for a candid assessment of risks, controls, governance structures, and compliance frameworks. Independence in reporting lines, objective judgement, and freedom from management influence are non-negotiable.
Audit committees expect internal audit to:
- Examine issues without fear or favour
- Highlight emerging concerns early
- Challenge management assumptions where necessary
- Provide evidence-based assessments
Without independence and objectivity, the assurance provided becomes unreliable, limiting the committee’s ability to fulfil its oversight role.
- A Risk-Based and Dynamic Audit Plan
Audit committees expect the internal audit plan to be aligned with the organisation’s most significant and evolving risks. A static, compliance-heavy plan no longer meets the expectations of modern governance. Instead, internal audit is expected to demonstrate agility, revisiting the plan periodically as new risks emerge—whether cyber threats, geopolitical shifts, supply-chain disruption, or cultural challenges.
Key expectations include:
- A strong connection between the audit plan and enterprise risk management
- Justification for every major area covered or excluded
- Flexibility to conduct unplanned or advisory reviews when risk levels shift
- Visibility of risks that may not yet have fully materialised
Forward-looking, risk-centric audit planning builds confidence that the audit function is focused on what truly matters.
- Clear, Insightful, and Timely Reporting
Audit committees expect reports that are not only accurate, but also actionable. Gone are the days of lengthy, technical audit reports that fail to convey risk implications clearly. Committees now seek crisp insights that translate complex issues into strategic implications.
Effective reporting includes:
- Clear articulation of the risk and why it matters
- Prioritised recommendations tied to organisational impact
- Timeliness—no delayed communication on critical issues
- Dashboards and summaries that support decision-making
The CAE must be able to distil findings into meaningful messages that support the committee’s oversight responsibilities.
- Strong Collaboration with Senior Management—Without Compromising Independence
Audit committees expect the CAE to maintain strong working relationships with senior management. Robust collaboration ensures smoother audits, better issue resolution, and heightened risk awareness. But this collaboration must never dilute independence.
The committee expects:
- Professional but appropriately distanced relationships
- Constructive management engagement during audits
- Transparency in areas where management may be resistant
- Honest escalation of significant issues
The CAE’s ability to balance partnership with impartiality reflects directly on the credibility of internal audit.
- Competence, Capacity, and Continuous Improvement
Audit committees want assurance that the internal audit function is skilled, adequately resourced, and continuously evolving. With technology, business models, and regulatory demands changing rapidly, internal audit must no longer be limited to traditional audit skills.
Committees look for:
- A diverse skill set—analytics, IT, cybersecurity, behavioural insights
- Up-to-date methodologies and tools
- Appropriate staffing levels and expertise
- Ongoing training and professional development
- Use of technology to enhance audit effectiveness
A mature internal audit function is expected to innovate, not simply maintain.
- Proactive Identification of Emerging Risks
Beyond providing assurance over existing controls, audit committees expect internal audit to help the organisation prepare for the future. This requires a proactive mindset—scanning the horizon for risks that could impact strategy, operations, financial health, or culture.
Examples include:
- Digital transformation risks
- Third-party and geopolitical exposures
- Data privacy and cyber threats
- Cultural or ethical red flags
- Sustainability and ESG-related risks
By identifying emerging threats, internal audit enhances the audit committee’s ability to guide leadership toward better risk preparedness.
Conclusion
Audit committees expect much more from internal audit than traditional compliance checks. They seek a trusted advisor—one that provides objective assurance, anticipates risks, communicates with clarity, collaborates constructively, and continuously enhances its capabilities. Meeting these expectations requires strong leadership from the CAE and a culture of continuous improvement within the internal audit function.
When internal audit aligns with these expectations while maintaining its independence and objectivity, it becomes an invaluable partner in strengthening governance, enhancing resilience, and supporting long-term organisational success.
About the author:
Amit Sharma is the Vice President and Head of Audit – APAC at EXL, with over 24 years of experience in internal audits, risk management and compliance. As part of his commitment of giving back to the auditing profession, he also serves on the IIA India Delhi Branch Board of Governors and is the Chairperson of the Publications & Research committee of IIA India Delhi Branch.