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Insights from the IIA-Australia Canberra Conference Panel Discussion

The relationship between internal audit and organisational governance has never been more critical. At a recent IIAA Australia conference, three distinguished practitioners—Elizabeth Montano (seasoned audit committee chair for multiple organisations), Lisa Berwick (Chief Internal Auditor at ASIC), and Bruce Turner (former internal auditor now serving as audit committee chair for multiple organisations and 2025 recipient of the Global Internal Audit Legacy Award)—shared compelling insights on how internal auditors can elevate decision-making across their organisations. 

The Foundation: Decision-Making as a Learnable Skill 

Elizabeth Montano opened with a fundamental reframe: "Decision-making is a skill like any other." This perspective shifts internal audit's role from simply identifying problems to actively developing organisational capability. According to Montano, this skill requires three interconnected elements: 

For internal auditors, this means our recommendations should not just address immediate control gaps but also strengthen the organisation's decision-making infrastructure. Are your audit reports helping build this capability, or are they simply pointing out deficiencies? 

Creating Psychological Safety in Assurance Functions 

Lisa Berwick emphasised a crucial but often overlooked aspect: creating safe environments for assurance teams to operate effectively. "Without my team, I can't discharge my obligations," she noted, highlighting the importance of psychological safety within audit functions. 

This translates to practical leadership behaviours: 

Berwick's philosophy is telling: "I've never lost a minute of sleep over disclosing something that needed to be disclosed. Sometimes it doesn't go well, but at least you know you've done the right thing." 

The ABC Framework for Audit Excellence 

Bruce Turner, drawing from decades of experience including his time as Chief Audit Executive at the Australian Taxation Office, presented his "ABC" framework for quality internal audit: 

Attuned: Understanding the business through effective stakeholder engagement, organisational strategy, vision, values, and statutory objectives. 

Balanced: Maintaining objectivity in how audits are conducted and results are presented to executives and audit committees. 

Credible: Building credibility through capability, professional development, certifications, and strict adherence to professional standards. 

Turner's framework provides a practical lens for chief audit executives to assess their functions and for individual auditors to evaluate their professional development. 

Collaborative Reporting: Breaking Down Silos 

One of the most innovative concepts discussed was collaborative reporting between different assurance functions. Turner noted: "Sometimes these different groups need to come together to provide a collaborative report on particular topics... Sometimes we can get reports from disparate areas where one's saying everything's okay, while there's a major investigation revealing systemic issues." 

This approach addresses a common governance challenge where audit committees receive conflicting signals from different assurance providers. Internal audit is uniquely positioned to facilitate these collaborative efforts, given its enterprise-wide perspective and independence. 

Measuring Success: Beyond Compliance to Impact 

Lisa Berwick offered a compelling success metric: "One of our KPIs is to see our reports lead to tangible change." This moves beyond traditional measures of audit completion rates or recommendation acceptance to focus on actual organisational improvement. 

The panel suggested several indicators of a successful internal audit function: 

Handling Recommendation Rejection: A Strategic Approach 

When asked about management rejecting audit recommendations, the panelists provided nuanced guidance. The key is understanding the "why" behind rejection through persistent questioning and ensuring risk acceptance occurs at appropriate organisational levels. 

Elizabeth Montano emphasised the importance of good audit protocols: "Really good interaction between management and your audit team during the course of the audit. Really good exit interviews, exit workshops." The goal is to avoid surprises and ensure recommendations are pitched appropriately. 

The Path Forward: Avoiding "Wishy-Washy" Recommendations 

Bruce Turner concluded with a memorable anecdote about a deputy chief executive who initially "hated internal audit" because of "wishy-washy recommendations." The transformation occurred when internal audit began delivering what management actually needed—clear, actionable, and balanced insights. 

This story encapsulates a broader truth: internal audit's value isn't measured by the volume of recommendations but by their quality and impact on organisational decision-making. 

Key Takeaways for Internal Auditors 

The conversation revealed that excellent internal audit functions don't just identify problems—they build organisational capability, facilitate better decision-making, and create lasting positive change. In an era of increasing complexity and risk, this elevated role for internal audit has never been more essential. 

The full panel discussion highlighted the evolving nature of internal audit from a compliance function to a strategic enabler of organisational excellence. As the profession continues to mature, these insights provide a roadmap for internal auditors seeking to maximise their impact on organisational governance and decision-making.