The concept of governance is often a challenging area for internal audit. For the first time, standards for the IA profession will include direction and responsibilities for the board. Domain III outlines several standards for the board that:

• Authorize the IA function.
• Ensure and safeguard its independence and positioning within the organization.
• Establishes the board’s responsibilities for overseeing the quality of the performance of both IA and the chief audit executive.

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.

This course delves past the Standard requirements and examine the “how” and “what if’s” of the requirements. CAE’s and internal auditors may find that there are a multitude of concepts within this Domain that their organization’s will not or can not accept. We will discuss the concepts and evaluate the options that internal audit has in order to best comply with the elements in Domain III.