Auditing corporate culture and ethics: Why they matter
The guide emphasises the importance of corporate culture and ethics as foundational elements for a resilient and high-performing organisation. It outlines the role of culture in shaping employee behavior, decision-making and risk management. The guide highlights the expanding role of Internal Audit in evaluating corporate culture and ensuring governance structures support ethical behavior. It introduces the Three Lines Model for auditing culture, detailing the responsibilities of the first, second, and third lines in managing and overseeing cultural risks. Practical steps for auditing culture include leveraging available resources, securing support from leadership, and training auditors. The guide also discusses different auditing approaches—integrated, targeted, and top-down—and the importance of effective communication and reporting of audit results. Ultimately, the guide underscores that auditing culture is about ensuring organisational values are lived realities, driving success and ethical behavior.
