The most senior person in the internal audit function is the Chief Audit Executive (CAE).  The CAE reports directly to the Audit Committee and are independent of the management. Some of the areas that are considered when setting up an internal audit function: 

• Audit Methodology and Audit Objectives

• Audit Policies and Procedures

• Internal Audit Charter

• Templates or Programs:

  • Terms of Reference of the Internal Audit Function

  • Risk Control Matrix

  • Reporting Frequency and Hierarchy

  • Action on Audit Issues Tracking

  • Management Reporting

  • Audit Committee Reporting

• Training plan or schedule for the business to integrate the internal audit function.

The internal audit function should review and update the following internal documents as necessary: organisation charts and structures, internal communications such as intranet content, onboarding material for new employees and training materials.

To improve risk management and governance through effective controls, it is important to prioritise the integration of the internal audit function and foster relationships with other functions within the organisation. 

While the internal audit function operates independently, it also collaborates with the management. Senior leadership should support this integration effort.