From Auditor to Executive

C: From Manager to Strategic Leader. The “C” in CAE signals a shift from managing audit work to leading at the executive level. The role places the CAE alongside other C-suite leaders. The CAE’s focus moves beyond individual audits to the overall performance and direction of the audit function (see “The CAE’s Role”). This requires a broader perspective of the business aimed at ensuring internal audit supports the organization’s strategic goals.

A: Leveraging Accumulated Technical Experience. The “A” reflects the internal audit experience that supports a CAE’s credibility. This includes the myriad audit cycles and audit types completed throughout a career. This deep understanding of the audit process enables the CAE to guide the audit function and support team members’ professional development.

E: Embracing the Executive and Strategic Mindset. The “E” emphasizes an executive mindset built on business acumen and influencing skills. The CAE must be able to have meaningful strategic conversations with the CEO and the C-suite about the organization’s direction, key risks, and opportunities. The leader also must provide insights that support decision-making and organizational goals.

Build Relationships

Maintaining relationships with stakeholders is key to the CAE’s role. Unlike internal auditors who primarily interact with their managers, team members, and clients, the CAE works with a wide range of stakeholders, including the CEO, board, audit committee, senior management, regulators, external auditors, internal assurance functions, and business units.

CAEs need a structured approach to effectively manage these stakeholder relationships. For example, they could use a table to track each relationship, including:

• The date of the last meeting.
• The scheduled date for the next meeting.
• The current level of the relationship (for example, developing, strong, needs attention).
• A concise summary of past discussions.
• Planned topics for future engagement.

Audit Committee. At a minimum, the CAE should schedule quarterly meetings with the audit committee chair, supplemented by ad-hoc meetings to address significant emerging risks or risk incidents. For other committee members, CAEs should schedule calls twice a year or quarterly. Moreover, on audit committee meeting days, the CAE should seek to have brief, private conversations with individual members and the chair.

The CEO. Maintaining a strong connection with the CEO is vital. The CAE should meet with the CEO quarterly, ideally before audit committee meetings. These discussions should focus on strategic priorities, such as the organization’s strategic progress, the status of key performance indicators (KPIs), and emerging risks that could prevent the business from achieving its objectives.

Adopting a “give before you take” approach helps build trust with audit clients. Before starting an audit, the CAE should engage business-unit managers and other stakeholders early and share practical insights or advice based on previous experience with the business, industry knowledge, and known risks.

This work does not replace assurance. Instead, it demonstrates value and builds credibility. When stakeholders see internal audit as helpful, they are more likely to cooperate and support a smoother, more effective engagement.

At the heart of this approach is trust. It grows through consistent, transparent communication and delivering on commitments. Open, reliable interactions with stakeholders help build confidence in internal audit’s ability to support and protect the organization. Beyond reporting audit findings, CAEs must listen to stakeholder concerns and feedback to foster a more collaborative and supportive environment.

Demonstrating internal audit’s value is key to gaining stakeholder support. The CAE should regularly communicate how audit work improves risk management, strengthens compliance, and supports strategic objectives (see “Enhancing Audit Effectiveness”).

Internal Audit Staff. Finally, the CAE needs a solid relationship with the internal audit staff. Team members drive results, so the CAE must coach them, set clear and achievable KPIs, and assess their performance. Furthermore, the CAE should inform the staff about the outcomes of significant meetings and developments that are relevant to their work.

Promoting lifelong learning helps staff members maintain strong skills and adapt to change. Ongoing training, certifications, and staying abreast of industry trends prepare auditors to address new risks and challenges while fostering a culture of growth and innovation.

Strengthen Independence

Independence and objectivity are core to internal auditing, but CAEs need to distinguish between the ideal and current practice. New CAEs often find opportunities to strengthen internal audit’s independence in reporting lines, budgets and transaction approvals, and even the CAE’s place in the organization’s hierarchy.

Independence can be compromised in ways that go beyond the reporting structure. The CAE must educate stakeholders and the audit committee about how independence impacts internal audit’s deliverables. In addition, he or she must work with the audit committee to enhance the maturity of internal audit’s independence. Regardless of its current level of independence, internal audit must consistently deliver value and clearly communicate its impact. 

In addition to independence, internal audit must maintain its objectivity. To protect the function’s objectivity, the CAE and practitioners must understand the organization’s business, people, processes, and technology. A deep understanding of the organization’s operations and risks helps auditors separate facts from assumptions, question management’s judgments, and make balanced, evidence-based, and unbiased assessments.

Lead as an Executive

New CAEs operate in a complex and demanding environment. Their success depends on being able to transition from a managerial role to a true executive leadership position.

At the same time, effective CAEs need effective leadership habits such as those identified by author and internal audit advisor Hans Beumer in his 2018 book, The 7 Leadership Habits of Highly Effective Chief Audit Executives. These habits include a focus on relationships, strategic thinking, clear communication, continuous learning, courage, a willingness to ask for help, and leading with integrity and self-awareness. These qualities position the CAE as a valued partner.

By strengthening their leadership capabilities and technical foundation, CAEs can elevate internal audit as a source of insight that helps the organization manage risk and achieve its long-term objectives.