I have attached below a link to this discussion by the Institute of Internal Auditors. This is a worthwhile discussion for key areas, although broad and lacking in specifics. I’m not being critical in that comment – this is a detailed and time intensive endeavor. I will say that as an audit committee member I would have more involvement in the process than these points indicate. As an audit committee member I want to be sure that internal audit is very helpful to me in accomplishing my oversight responsibilities. And that approach is in keeping with director and audit committee member responsibilities and the business judgment rule, and is beneficial to everyone including the shareholders, the audit committee, the board, the executive offers, internal audit, the external auditor, and others. Click on the following link for the IIA discussion – CLICK HERE

Dave Tate, CPA (California, inactive), Attorney, San Francisco and California
Tate’s Excellent Audit Committee Guide (updated October 2015)

Click to access tates-excellent-audit-committee-guide-10242015.pdf