2016 State of the Internal Audit Profession Study

Leadership matters: Advancing toward True North as stakeholders expect more

As companies face more risks than ever, they’re looking to their internal audit functions to deliver value by educating stakeholders on emerging risks and leading risk management practices that would improve the business. According to PwC’s 2016 State of the Internal Audit Profession study of over 1,600 chief audit executives (CAEs), senior management and board members, internal audit functions that have very effective leadership perform better and add greater value to their businesses. 

More than half of the stakeholders who participated in our survey revealed that they now believe internal audit is contributing significant value – up six points from 2015. The study also highlights that 62 percent of stakeholders expect more value from internal audit with 55 percent expecting internal audit to be a more proactive trusted advisor within the next five years. 

PwC’s report outlines five actionable characteristics that are consistently exhibited by the most effective internal audit leaders:

1. Create and follow through on a vision
2. Source and retain the right talent
3. Empower the internal audit function 
4. Demonstrate executive presence 
5. Partner with the business in meaningful ways