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26 Gibraltar International www.gibraltarinternational.comDo you think internal audit is only needed after problems arise, or is just for regulated businesses? Think again. For years, internal audit was seen as a necessary evil%u2014a retrospective compliance function, or even the business%u2019s %u201csecret police.%u201d That perception is outdated. Today, internal audit is a proactive, strategic partner focused on what truly matters to the business. It helps prevent major issues, supports senior management, and unlocks significant value across industries. It%u2019s time for boards, audit committees, and leadership teams to rethink internal audit%u2014not to view it as a compliance burden, but as a vital tool to protect and create value when used effectively.A growth and strategy enablerInternal audit fundamentally supports growth and decision-making by identifying emerging risks and opportunities. It offers practical advice on mitigating those risks and capitalising on business potential. A strong internal audit team reviews Governance, Risk, and Control (GRC) frameworks supporting daily operations. It also evaluates change initiatives like digital transformations and acquisitions through this lens. Many organisations benefit from co-sourced or outsourced internal audit models, which brings the advantage of having access to diverse subject experts%u2014from cybersecurity to actuarial services%u2014and also provides benchmarking against peers. Yet, many still underutilise internal audit%u2019s true value.Changing perceptions, from fear to trustHow people view internal audit directly impacts its effectiveness. The old mindset of internal audit as a %u201cnecessary evil%u201d must give way to seeing it as a trusted advisor. This shift saves management time and reduces the high costs of firefighting crises or facing regulatory penalties. Companies often spend up to ten times more addressing risk events than they would have on proactively preventing them.Risk management and strategy are inseparable. Businesses cannot execute strategy well without actively managing the risks. Internal audit helps by challenging the risks and highlighting issues before they escalate. More forward-thinking organisations recognise internal audit%u2019s role in enhancing operational efficiency and resilience amid complex risk landscapes.Building this trust requires a cultural change. Boards and executives must display support in their internal audit function, utilising their specialism through areas such as added value reviews. This behaviour then filters down throughout the organisation. They can also create an environment where people can share concerns openly %u2014 removing fear and enabling better decision-making. Without this trust, problems stay hidden until they cause damage, stalling growth and weakening governance.Internal audit as a strategic advisorInternal audit has evolved beyond process and control checks to become a strategic function%u2014reflected in updated international standards. Strong internal auditors act as independent advisors, showing what %u201cgood%u201d looks like across people, processes, and systems, not just assessing controls. Senior leaders should partner with internal audit to gain early insight into risks that could cost talent, customers, or opportunities. With rapid cultural and technological change underway, organisations have a prime opportunity to embrace internal audit as a business growth enabler.Valuable across all sectorsInternal audit is not just for banks or heavily regulated industries. Companies of different sizes across all sectors can benefit. Entrepreneurial and high-growth companies, focused on innovation and revenue, often lack mature risk practices. As they scale, internal audit provides cost-effective expertise to fill gaps and support sustainable growth. We have seen real value obtained here, preventing significant issues occurring and setting the company up for the future. Leaders cannot be experts in every specialty%u2014from supply chain to cybersecurity. Internal audit fills those knowledge gaps, identifies improvement areas, and fosters open dialogue.Keeping pace with regulationRegulations are constantly developing and becoming more onerous across many sectors like insurance, online gaming, digital assets, and banking%u2014especially for multinationals. Internal audit plays a key role in ensuring compliance with evolving requirements and industry standards. Beyond regulations, customers, suppliers, and the public expect high standards on sensitive issues such as customer protection, data, AI and third-party risk.Tailored, technology-driven approachInternal audit must fit the business%u2019s size, risk maturity, and needs. At Grant Thornton, we design bespoke internal audit plans, tailored to meet a firms specifics circumstance. Technology is also transforming internal audit work. Data analytics and automation enable deeper, faster insights%u2014boosting audit value and efficiency.BusinessUnlock business value with internal auditBy Craig Doyle, Director %u2013 Business Risk Services, Grant Thornton Gibraltarwww.grantthornton.gi