Beyond the Green Eyeshade: Why Internal Audit is Your Board's Secret Weapon

Show Notes

Internal audit plays a critical yet often misunderstood role in corporate governance. In this episode, Doug Chia is joined by Carey Blakeman and Benito Ybarra from the Institute of Internal Auditors, and Mike Varney from Crowe LLP, to unpack what internal audit actually is, and what it isn’t. They explore how the function extends far beyond compliance, offering both assurance and strategic advisory to help organizations identify and manage risk. They also discuss why internal audit is uniquely positioned to provide a cross-functional view of an organization and why boards should be engaging more deeply with it, reporting structures, independence, fraud risk, and the evolving expectations of the profession, including insights from Vision 2035. They ultimately make the case for elevating internal audit as a key contributor to effective governance and long-term value creation.

Highlights

• [00:40] Meet the guests: Carey Blakeman, Benito Ybarra, and Mike Varney
• [01:30] Setting the context: Internal audit’s critical role in corporate governance
• [03:20] Overview of the Institute of Internal Auditors and its global mission
• [08:20] Defining the internal audit function and strategic risk mitigation
• [14:50] Addressing fraud risks and global operational oversight
• [17:50] Understanding “assurance” and updated global audit standards
• [21:30] Vision 2035: Future trends, strategic alignment, and funding
• [26:10] Where internal audit should sit within the organization
• [29:10] The mandate for direct board-level reporting
• [34:10] Regulatory impacts and hiring responsibilities of audit committees
• [37:50] Navigating leadership relationships and transparent communication
• [41:30] Developing effective audit committee and internal audit charters
• [46:20] AI risks and implementation
• [51:40] Essential criteria for audit effectiveness and executive acumen
• [57:10] The role and value of private executive sessions
• [59:40] Findings and key points from the Vision 2035 report
• [01:03:50] Including sustainability and resilience