TIAPS Module 1 Audit and Assurance workbook

Performance audits are also useful in determining governance with regard to particular
policies and initiatives. Some governance audits pay particular attention to the working of the
governing body and may evaluate the effectiveness of meetings, strategic planning,
management of conflicts of interest, nominations, and so on. External agencies can provide
this service for greater independence and objectivity.
Suggested questions internal auditors may ask as part of their investigation into the
adequacy and effectiveness of governance, focusing on the key aspects of governance
(performance, conformance, value creation and protection, and accountability) are given
below, based on guidance from IFAC:
• Do the structures and processes of governance serve to optimize stakeholder value?
• Do they serve to ensure an appropriate balance of stakeholder interests?
• Do they support both performance in respect of achieving organizational purpose and
conformance with laws, regulations, policies, and other expectations?
• Are governance processes fully integrated into the organization and its culture,
planning, behaviors, and activities?
• Is the governing body appropriately constituted and structured to lead on governance
for the organization, overseeing senior management and internal audit, and engaging
with key stakeholders?
• Has the governing body established a set of fundamental values by which the
organization operates?
• Are these values well communicated, monitored, and appropriately reinforced and
enforced?
• Does the strategy adopted by the governing body demonstrate a sound
understanding of the political context, operating model, and internal and external
environment?
• Does the strategy promoted by the governing body provide sufficient direction and
focus for the organization?
• Has the governing body ensured that management has established an appropriate
and effective framework for risk management and internal control?
• Does the governing body ensure resource allocation by management is aligned with
strategic priorities?
• Does the governing body evaluate its own effectiveness as well as that of its strategy
and organizational activities toward continual improvement and achievement of
objectives?
• Are the interests and needs of stakeholders given appropriate consideration and do
stakeholders receive relevant, timely, and reliable information? 52
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Evaluating and Improving Governance in Organizations, IFAC, 2009.
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