​​Assessing the Effectiveness of Governance - How Effective Is the Board?​

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​The IIA Standards require internal auditors to assess the effectiveness of their organization's governance processes. It's an understatement to say this is a challenge.

One place to start is with the board of directors (or equivalent). How effective are they in performing their duties?

​A leading practice is for boards to perform self-assessments — of the operation of the board, each of its committees, and of individual directors. Perhaps a good place for the auditor to start is by evaluating and providing feedback to the board on the adequacy of board self-assessment processes.

An excellent source for many governance-related topics is the Canadian Institute of Chartered Accountants. In 2005, they released "20 Questions Directors Should Ask About Governance Assessments."

I suggest reading this and considering whether this represents a valid standard against which you can assess the effectiveness of the board self-assessment process.

Here is another resource​ for your consideration:


If you have good guides for board self-assessment, please share — for mutual benefit.


 

 

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