With growth high on the government’s agenda, the pressure is on for boards across all sectors of the economy to deliver, and fast. In this current climate, growth is now essential and, without it, we will see the deterioration of vital public services, infrastructure and living standards.

But let’s be clear: growth doesn’t happen on its own. It requires sound decision-making, effective governance, and a willingness to take risks, not recklessly, but responsibly. It’s about taking the right risks in the right way, and that’s where internal audit can make a real difference.

Boards need sharper insights, stronger oversight and a clearer understanding of the risks their organisations face.

Internal audit, when appropriately resourced and positioned, provides all three. It offers independent and objective assurance on business-critical risks and plays a key role in giving organisations the assurance they need to navigate risk and pursue growth. Its value lies not only in helping to prevent what could go wrong, but also in supporting the pursuit of opportunity, identifying where calculated risks can and should be taken to drive growth.

For boards, the work of internal audit shouldn’t be slipping under the radar. Internal audit is already proving its value in helping organisations manage complex challenges, from cyber-threats and regulatory compliance to supply chain disruption and inflationary pressures. Many internal audit functions are also increasingly focused on upside risks, including how innovation, market expansion and digital transformation—including AI—can be safely accelerated.

Translating commitments into practice

As the government’s net-zero and ESG ambitions continue to ramp up, internal audit also has a growing role to play in ensuring these commitments are translated into practice. Across sectors, internal audit functions are providing assurance over environmental compliance, social impact and governance structures. This helps build trust with stakeholders and prepares organisations for the future economy.

Yet internal audit is still sometimes misunderstood. Too often, it is seen as the ‘No-You-Can’t Bureau’, a source of bureaucracy rather than a driver of strategic value. This perception is outdated. Internal audit should be seen as an enabler of good and responsible decision-making.

And when organisations get key decisions wrong and risks are not accounted for, the consequences are serious. Corporate failures such as BHS, Carillion, Patisserie Valerie, Bulb and ISG, all highlight the risks of weak assurance and oversight. In many of these cases, there was no internal audit function. While we cannot say for certain what difference internal audit might have made, the absence of independent assurance raises serious concerns about whether boards were getting the full picture on the risks facing their organisations.

When businesses collapse, it is not only shareholders who pay the price. Jobs are lost, services are disrupted and economic growth is set back.

That is why the Chartered Institute of Internal Auditors has been making the case for stronger internal audit requirements. We welcomed the government’s commitment in the King’s Speech last year to publish the Audit and Corporate Governance Reform Bill, and we support the plan to review the non-financial reporting framework. Our long-term aim is for all public interest entities to have an internal audit function as an integral part of their governance structure.

Where does this leave boards?

Boards need to recognise the value of internal audit as a strategic partner in helping to deliver growth for organisations. This means ensuring internal audit is independent, appropriately resourced, and has a direct line to the audit committee. It also means asking the right questions: Does it have the authority and access it needs to provide meaningful assurance? Is it bringing fresh insight into emerging risks, not just known problems? And are we giving it the visibility, stature and resourcing it needs to add real value?

Internal audit can deliver on this potential only if boards actively support their role and make full use of the insight and assurance it provides. That support is essential if organisations are to grow sustainably and remain resilient in an increasingly uncertain environment.

This is not about adding red tape or slowing things down. It is about strengthening decision-making, enabling smarter risk-taking and helping organisations stay focused on long-term sustainable growth.

Put simply, if boards are serious about long-term sustainable growth, internal audit has to be part of the plan.

Sandro Boeri is president of the Chartered Institute of Internal Auditors. This article is based on a speech delivered earlier this month in the House of Commons.