The Role(s) of the Auditor in Projects: Proactive Project Auditing

Abstract

. In the era of dynamically changing environments, globalization and increasing legislation companies need to re-visit their strategy on a continuous basis. Consequently this requires the redesign of the organization, processes, and systems, all of which are often executed through (large) projects. With increasing demands from management on the internal audit profession, the question is raised of how the auditor's role can be redefined, as it shifts from the more traditional assurance role to being involved as a proactive partner in projects, without losing its independent position. Potentially the advisory and participative roles might conflict with the assurance role of the auditor. However, if for this reason the auditor's role is restricted to the compliance aspect only, the added value of the auditor may be substantially reduced. This article is based on research aiming to provide a practical relevance to audit profession and industry. It describes the different types of roles that can be fulfilled by the auditor, taking into consideration the shift from the traditional assurance role toward more proactive roles in projects: advisory and participative roles without jeopardizing the auditor's position.