Fractional chief auditors
Summary
In this article for the Chartered Institute of Internal Auditors, James argues that a fractional chief auditor, working part time, can be a strategic choice rather than a compromise, as fractional finance, marketing and technology leaders already are. The lower cost may let a smaller organisation recruit a more experienced head of audit.
The appointment has to be real: the chief auditor is named in the internal audit charter, reports directly to the audit committee or board, and signs off the audit plan. James sets out what the model needs: independence that cannot be diluted, planned presence rather than mere attendance, openness with regulators and external auditors about the time given, and a team strong enough to carry the model. He also puts questions to the profession, among them how audit committees can be helped to commission these roles wisely.
Three key points
- A fractional chief auditor can be a strategic choice, not a compromise, and may let a smaller organisation afford more experience.
- The appointment must be real: named in the charter and reporting directly to the audit committee or board.
- Part-time working must not weaken independence, so the charter should give direct access to the audit committee chair.
Read the full article
The summary above draws on a longer article. The Chartered Institute of Internal Auditors publishes it in full, including the questions James puts to the profession about how these roles are commissioned.
Chartered IIA members only
Insights
Worth reading next
The reading below stays close to this subject, often seen from the side of someone else round the table, such as the chair, an investor or the head of internal audit. It shows the wider subject from their perspective, and the questions each of them is likely to ask.
Should internal audit report to the chief financial officer?
A line from internal audit to the finance chief needs safeguards that an audit committee chair can see and check.
How should internal audit prepare for an external quality assessment?
An external quality assessment tests evidence an internal audit function already holds, so preparation starts well before the fieldwork.
Explore your own question further
In a particular organisation, the detail can change how these points apply. James is happy to hear from anyone weighing them up for their own board, audit function or deal. This page summarises an article published elsewhere, and is not advice on any particular situation.