Government Audit Committees – Part 3 – There’s more to consider: Internal audit function, independent auditors and risk management

The audit committee governance and accountability responsibilities to both the internal audit function and the oversite of the independent auditors are shaped by the entity’s risk appetite and tolerance, limitations and are affected by the determined mitigation options and outcomes. The ongoing monitoring of both the internal and independent auditors ensures independence and objectivity are in place is a significant function to ensure a robust risk management program.

The considerations highlighted within this report address internal controls, mitigation, and analysis within the entity’s strategies and objectives as they are carried out by both the internal audit function and the independent auditors. The performance of the internal audit function is assessed with a focus upon the implementation and maintenance of quality control improvements.

This article which includes tools for the audit committee to assess both the internal and independent auditors to ensure independence, objectivity and performance. For more information, refer to Part 1 – Charter, Roles and Responsibilities and Part 2 - Hitting your stride: Understanding internal controls, fraud and audit findings of the series.

Author: Lori A. Sexton, CPA, CGMA, is a Senior Technical Manager, America’s Region Management Accounting at the AICPA and the Association of International Certified Professional Accountants. She serves as staff liaison to the AICPA’s Government Accountability and Performance Committee.