What's Happening?
Charlie Johnson, the Director of Internal Audit & Enterprise Risk Management at Forvis Mazars, is recognized for his extensive experience in the internal audit profession. Johnson has played a significant role in shaping internal audit functions across
various sectors, including for-profit, not-for-profit, and government industries. His career includes serving as Chief Audit Executive for a large utility and as Audit Committee Chair for a national not-for-profit board. Johnson is also a member of the International Internal Audit Standards Board and has contributed to the development of internal audit certification and professional standards. The recent focus is on the Third-Party Topical Requirement, which is being used by internal audit functions to assess risks associated with third-party agreements. This requirement aims to enhance the effectiveness of governance, risk management, and control processes.
Why It's Important?
The implementation of the Third-Party Topical Requirement is crucial for organizations relying on third-party services, as it provides a structured approach to managing associated risks. This development is significant for industries that depend heavily on external partnerships, as it ensures alignment with organizational goals and enhances operational efficiency. By adopting this requirement, internal auditors can offer more reliable assurance, which is vital for maintaining stakeholder trust and achieving strategic objectives. The initiative also reflects a broader trend towards strengthening governance and risk management practices in the corporate sector.
What's Next?
Organizations are expected to continue integrating the Third-Party Topical Requirement into their audit processes, which may lead to more consistent and high-quality audit engagements. As internal auditors become more adept at applying this requirement, it could result in improved risk management and governance outcomes. Additionally, the ongoing development of internal audit standards and certifications will likely enhance the profession's capacity to address emerging challenges in risk management.
