WHAT DOES A DIRECTOR OF INTERNAL AUDIT DO?
Updated: Mai 28, 2025 - The Director of Internal Audit manages a portfolio of internal assurance engagements, focusing on inspections, audits, and reporting in compliance with the Internal Inspections Program. This position supervises audit teams, maintains strong relationships with team members, and ensures audits are executed effectively, including providing reports and practical recommendations. This role also assists with action plans, oversees third-party engagements, and participates in management meetings and governance committees to integrate current risks into the audit plan.
A Review of Professional Skills and Functions for Director of Internal Audit
1. Director of Internal Audit Duties
- Audit Leadership: Leads all aspects of the internal Audit function, including annual planning and risk assessment results, changes to the audit plan, status of open audit issues, and Internal Audit staffing and budgets.
- Assurance Provision: Provides independent assurance to the Audit Committee and senior management on the design and operating effectiveness of controls, implementation and execution of the enterprise's core business processes and risk management framework by assessing the risk, including emerging risks and top risks associated with the organization’s current material processes, and functions.
- Audit Direction: Provides technical and strategic direction to audits and investigations.
- Audit Program Development: Develops, administers, and oversees a risk-based comprehensive enterprise-wide audit program that provides the Audit Committee, the CEO, and members of management with independent, objective assurance services regarding the effectiveness and efficiency of the enterprise’s governance, risk management, and control processes.
- Audit Management: Manages audit staff and oversees audit findings and recommendations.
- Talent Development: Develops talent and builds a high-performing team to deliver high-quality results and value-added services including the identification, development, and retention of talent with requisite capabilities as well as providing leadership and overseeing performance and talent activities.
- Accountability Enforcement: Holds self and others accountable to meet commitments by setting and clearly communicating expectations and roles and responsibilities relative to Internal Audit.
- Internal Audit Oversight: Responsible for effectively managing all aspects of Internal Audit work including any internal work that is outsourced which evaluates the adequacy of and compliance with policies, procedures, and processes.
- Governance Monitoring: Monitors, independently and objectively, the organization’s governance, risk and control environment ensuring trends and emerging issues that could impact the organization are considered and communicated to Executive Management and the Audit Committee.
- Standards Compliance: Ensures that Internal Audit policies and procedures are consistent with the Institute of Internal Auditors (IIA) International Standards for the Professional Practice of Internal Auditing, meet regulatory requirements and are appropriate for the size, complexity, and risk profile of the organization.
- Methodology Enhancement: Monitors continuous improvement of audit methodology and practices through the adherence to documented procedures and standards (best practices), ensuring consistency and quality of work across all team members.
- Reporting and Communication: Delivers and communicates audit reports, results, and activities, including material issues, root causes and recommendations as well as identification and escalation of significant instances where management are not effectively managing risk or meeting regulatory expectations, to the executive management and the Audit Committee.
- Corrective Actions Validation: Conducts validation testing and reviews to ensure that the recommended corrective actions to audit and regulatory identified issues are completed, sustainable and effective, and continues to evaluate the appropriateness of management’s corrective actions in response to issues identified.
2. Director of Internal Audit Details
- Strategic Development: Develops global internal audit strategic goals, which will help build a world-class internal audit and advisory functioning team.
- Program Design: Designs and implements an overall internal audit program and processes for the organization that provide value and drive company performance improvement.
- Process Improvement: Challenges current process design to identify areas for improvement, and recommends changes to supporting policies, procedures, and control execution to increase efficiency and quality.
- Risk Management: Maintains a risk-based audit approach, while ensuring an environment of continuous improvement and innovation, to assist Lightning’s officers in managing areas of responsibility including an effective and efficient program to address the Company's compliance with the controls-related components of Sarbanes-Oxley.
- Investigative Oversight: Oversees and conducts investigations in collaboration with the Legal function for compliance with internal policies.
- Leadership Collaboration: Collaborates with functional leaders and senior leadership to set strategic and tactical direction for planning, directing, and implementing financial, IT, and operational audits.
- Audit Execution: Plans, directs, and executes audits of the Company's significant income streams and business practices.
- Control Evaluation: Evaluates business process controls and recommends changes to the controls that promote cost savings and efficiency, and control improvements.
- Reporting: Prepares audit reports that provide recommendations concerning the adequacy and effectiveness of internal controls and business processes for discussion with the Chief Executive Officer (CEO), and/or Audit Committee of the Board of Directors.
- Compliance Evaluation: Evaluates the sufficiency of and adherence to the Company's plans, policies, and procedures, and compliance with government laws and regulations.
- Independent Review: Performs independent reviews as requested by Company management and/or the Audit Committee.
- Stakeholder Engagement: Engages the CEO, CFO, and senior and other stakeholders on all relevant audit matters with a view to inform, educate, improve, and innovate audit processes and outcomes.
- Thought Leadership: Provides thought leadership for various cross-functional teams, standards/policies, and initiatives at the Company, ensuring that a risk and reward mindset are effectively considered.
- Issue Articulation: Concisely articulates key issues and risks within the business, as well as potential solutions to the same, on an ongoing basis.
3. Director of Internal Audit Responsibilities
- Department Oversight: Responsible for the Internal Audit Department activities of a publicly traded real estate investment trust.
- Risk Alignment: Establishes a risk-based plan to align the priorities and agenda of the Internal Audit function with the strategic and compliance goals of the organization.
- Risk Assessment Conduct: Conducts the Company-wide Annual Risk Assessment to establish the internal audit plan and presents the results of the assessment to the Audit Committee and Executive Management.
- SOX Compliance Management: Manages the Sarbanes-Oxley Section 404 compliance process, including maintenance of audit programs and testing of internal controls.
- Process Documentation: Works with Company process owners to effectively document key processes and internal controls.
- Audit Communication: Frequently communicates the audit status with the Audit Committee, management, and the independent auditors.
- Audit Plan Execution: Develops and executes the annual internal audit plan, which includes establishing an annual budget that will include regional operational audits, construction audits, and special projects.
- Reporting: Provides complete and comprehensive audit reports for the benefit of the Audit Committee and management.
- Audit Due Diligence: Works with the Chief Financial Officer in audit-related due diligence for potential acquisitions.
- Disclosure Committee Participation: Participates as a member of the Company’s Disclosure Review Committee, providing a critical review of SEC filings.
- Meeting Agenda Creation: Creates the agenda for Audit Committee meetings and prepares a report highlighting Internal Audit Department activities.
- Charter Updates: Responsible for updating the Audit Committee and Internal Audit charters for approval by the Audit Committee.
- Independent Audit Oversight: Assists the Audit Committee in providing effective oversight of the independent audit function.
- Audit Liaison: Acts as a liaison between the Company and the independent audit team by monitoring client requests, performing and reviewing direct assistance work, and participating in status meetings.
- Staff Development: Active in the training, coaching, and providing timely candid feedback to Internal Audit Department Staff.
4. Director of Internal Audit Job Summary
- Assurance Portfolio Management: Manages a portfolio of internal assurance engagements as allocated by the Head of Audit with a focus on regular performance of inspections, reporting to assurance engagement partners and audit team members on matters identified in compliance with the Internal Inspections Program (IIP).
- Audit Planning and Execution: Plans and executes audit review fieldwork and statutory reporting across a portfolio of clients.
- Relationship Management: Builds and maintains strong relationships with audit team members.
- Audit Project Management: Manages all aspects of audit including agreeing to inspection timelines, team briefings, supervision, and delivery of audit work.
- Communication and Reporting: Assists with deliverables to the partners and managers of the firm through discussions, presentations, reports, and communications.
- Audit Implementation: Executes audits and issues internal audit reports with practical and pragmatic recommendations for improvement.
- Staff Supervision: Supervises other audit staff in risk assessment, audit program execution, and report development, and performs periodic follow-up audit engagements.
- Specialist Contracting: When appropriate, contracts with third-party audit specialists and oversees engagement in specific assurance projects.
- Action Plan Development: Assists management with developing action plans that demonstrate key elements in resolving identified weaknesses.
- Management and Committee Reporting: Meets with management and Audit Committee and reports annual risk assessment and attendant audit results both verbally and in writing.
- Audit Department Administration: Assists in Internal Audit Department administration including budget development and review, daily and annual scheduling, expense report review and approval, etc.
- Professional Development: Keeps current with developments in fields of expertise.
- Industry and Company Awareness: Maintains current knowledge of the direction of the company through discussions with corporate officers and attendance at various management meetings, conferences, and Board of Directors meetings to integrate current risks into the audit plan.
- Governance Participation: Participates in enterprise governance committees.
5. Director of Internal Audit Accountabilities
- Staff Leadership: Leads and develops the Internal Audit staff as aligned with the standard.
- Risk Assessment Performance: Performs the necessary risk assessments of all field businesses in order to develop an annual Audit Plan for field operational audits.
- Audit Plan Oversight: Oversees and executes the Audit Plan for field operational audits.
- Consulting Efficiency: Oversees and executes value-added consulting site visits in order to achieve greater efficiency and effectiveness of field businesses with respect to Company policy and procedures.
- Control System Maintenance: Maintains an internal control monitoring system to support management’s assertions required by Section 404 of SOX.
- Controls Documentation and Testing: Develops, manages, and executes the documentation and testing of the Company’s internal controls over financial reporting.
- Process Collaboration: Works with department heads in the documentation required by Section 404 focusing on processes, risk assessments, and internal controls over financial reporting.
- Gap Analysis: Identifies control gaps and works with process owners to document and monitor remediation plans.
- Process Improvement: Identifies, recommends, and implements changes to the Company’s financial processes to enhance efficiency and effectiveness.
- Auditor Liaison: Serves as liaison for internal and external auditors in connection with Section 404 engagement to ensure requests are fulfilled in a timely manner.
- Communication and Reporting: Prepares communications and status reports for senior management and the Audit Committee.
- Regulatory Updates: Keeps abreast of new Sarbanes-Oxley and related developments and identifies potential impact on the Company.
- Corporate Communication: Communicates to all levels both at corporate and in the field.
- Program Agenda Setting: In conjunction with senior leadership, sets the internal audit program agenda.
- Audit Reporting: Regularly reports audit findings, significant non-compliance trends, and audit unit performance to team lead and senior agency leadership.