june 2017 31 Internal audItor
an opportunity for internal audit because it can be identified during audits and
provide valuable information for higher-level management.
Different Cultures There is no right culture and no ideal risk/reward balance,
even for different parts of the organization. For example, finance may have a more
conservative culture, and sales may have a more aggressive culture, which is appropriate within limits. To meet this challenge, internal auditors must have good judgment, business knowledge, and transparent communication to put such differences
into perspective and determine whether they are appropriate.
No Defined Criteria Ideally, management and the board should define expectations for each part of the business, as well as the observable behaviors that illustrate consistency with, or variance from, that expectation. This is rarely done. The
lack of clear, specific criteria to audit against increases the challenge of auditing