Author

IIA-Australia

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Topics Explored

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Extract/Description

In a business setting, a Value Proposition can be defined as:

An innovation, service or feature intended to make an organisation or product attractive to customers.

With internal audit, the value proposition is based on three core elements of value delivered by internal audit to an organisation:

• Assurance
• Insight
• Objectivity

Key Points

Internal audit needs to demonstrate its value to the organisation it serves – if it cannot do this, it risks becoming redundant. Internal audit is also a non-core business activity, so can be at greater risk than other organisation activities when there are tough business conditions and economic downturns. It is therefore critically important for internal audit services to deliver real value and for audit clients to understand and appreciate that value.

Relevant Industries

Level of Assumed Knowledge