Strategic Planning for Internal Audit Excellence: Mastering Domain IV, Principle 9
This segment is dedicated to Domain IV and the Standard related to Planning Strategically.
The CAE is responsible for managing the internal audit function. Domain IV outlines the responsibilities this entails. This domain identifies principles for strategic planning, managing resources, ensuring internal auditors build relationships and communicate effectively with stakeholders, and ensuring and enhancing the performance of the function.
Domain IV provides the CAE a roadmap for setting up the internal audit function for success. For example, Principle 9 - Strategically Plans, covers:
Principle 9 sets the foundation for the remaining principles and standards. Once a strategy is set, you can work towards how to achieve that strategy. The principles in Domain IV provide a logical flow to managing resources, setting up methodologies, communicating effectively with all stakeholders, and ensuring there is a plan in place that ensures quality. Domain IV should assist CAE's to be thoughtful about the types of communications they have, how frequent they will be, who they are with, and what is their purpose. Domain IV also provides a means to clarify internal auditing’s role and value by telling CAE's what is expected from a professional perspective.
The new Standards emphasize that quality performance requires conformance to the Standards. Each standard within Domain III specifically identifies the responsibilities of the CAE and the board, as well as joint responsibilities.
The new Global Internal Audit Standards were released on January 9, 2024, and will become effective January 9, 2025. The previous version, the International Standards for the Professional Practice of Internal Auditing, released in 2017, remains approved for use during a one-year transition period. The Global Internal Audit Standards guide the worldwide professional practice of internal audit. They serve as a basis for evaluating and elevating the quality of the internal audit function. The Standards use 15 guiding principles with five separate Domains that enable effective internal audit implementation and examples of evidence of conformance.
The Global Standards are organized into five domains:
Lynn Fountain has over 45 years of experience spanning public accounting, corporate accounting and consulting. 24 years of her experience has been working in the areas of internal and external auditing. She is a subject matter expert in multiple fields including internal audit, ethics, fraud evaluations, Sarbanes-Oxley, enterprise risk management, governance, financial management and compliance. Ms. Fountain has held two Chief Audit Executive positions for international companies. In 2011, as the Chief Audit Executive for an international construction/ engineering firm, she was involved in the active investigation of a joint venture fraud. The investigation included work with the FBI and ultimately led to indictment of the perpetrators and recovery of $13M. Ms. Fountain is currently engaged in her own training and consulting business and is a regular trainer for the AICPA. Ms. Fountain is the author of three separate technical books. “Raise the Red Flag – The Internal Auditors Guide to Fraud Evaluations” was published by the Institute of Internal Auditors Research Foundation. -“Leading The Internal Audit Function” and -“Ethics and The Internal Auditor Political Dilemma” were published by Taylor & Francis In addition Ms. Fountain was a contributing author to the certification program exam for the National Association of Accountants. She also has certificate programs on various on-line platforms. Ms. Fountain has performed as an adjunct instructor for the School of Business for Grantham University and developed the first internal audit curriculum for the School of Business at the University of Kansas. Ms. Fountain obtained her BSBA from Pittsburg State University and her MBA from Washburn University in Kansas. She has her CGMA, CRMA credentials and CPA certificate (non-active).
