Internal Audit’s Role in Projects: New ECIIA Public Sector Committee Paper
Projects bring change, require significant resources and can alter an organisation’s risk profile. For internal audit functions, they raise an important question: how can independent assurance contribute throughout the project lifecycle?
The ECIIA Public Sector Committee has published Internal Audit’s Role in Projects, a new paper examining how internal audit can contribute to effective project governance, risk management and control.
A risk-based approach throughout the project lifecycle
The paper highlights the importance of a risk-based approach when determining internal audit’s involvement in projects. Depending on the risks involved, this may cover the entire project lifecycle or specific stages.
It identifies key areas for consideration across three phases:
- Planning and initiation: Reviewing the business case, strategic alignment, project approval, sponsorship and planning arrangements.
- Execution and monitoring: Considering project oversight, risk management, progress monitoring, change control and arrangements for independent assurance.
- Closure and post-implementation: Examining the transition to normal operations and whether intended benefits have been achieved.
Contributing while preserving independence
The paper also considers internal audit’s involvement in project boards and steering committees.
Early engagement can help internal auditors understand project risks and provide timely advice on governance and controls. However, the distinction between providing advice and taking management decisions remains important.
Where internal audit participates in project governance forums, the paper emphasises that its role should be clearly defined as advisory, without decision-making authority or voting rights.
Supporting professional discussion
The publication is intended to encourage reflection on how internal audit approaches project-related risks and allocates its assurance resources.
It provides a useful basis for discussions among internal auditors, audit committees and other stakeholders involved in the oversight of public sector projects.
Read the ECIIA Public Sector Committee paper, Internal Audit’s Role in Projects.