Key Responsibilities and Required Skills for Chief Audit Executive

🎯 Role Definition

The Chief Audit Executive (CAE) is the senior leader accountable for establishing the internal audit strategy, executing enterprise-wide assurance and advisory services, and reporting independent findings to senior management and the audit committee. The CAE drives risk-focused audit planning, evaluates the effectiveness of internal controls and compliance programs, leads fraud and special investigations when required, and partners with the CFO, CEO, and Board to strengthen governance and risk management. The role requires a seasoned audit executive with proven experience in public company environments, regulatory frameworks (e.g., SOX), and modern audit techniques including data analytics and continuous monitoring.

📈 Career Progression

Typical Career Path

Entry Point From:

Head of Internal Audit / Global Head of Internal Audit
Director / Senior Director, Internal Audit or Enterprise Risk Management
Partner or Senior Manager from Big Four external audit or consulting practices (Audit, Advisory, Risk)

Advancement To:

Chief Risk Officer (CRO)
Chief Financial Officer (CFO) or other C-suite roles
Board-level roles (Audit Committee member, Non-Executive Director)

Lateral Moves:

Head of Compliance / Chief Compliance Officer
Head of Operational Risk or Risk & Controls
Head of Financial Controls / Controller

Core Responsibilities

Primary Functions

Develop, communicate, and execute a risk-based internal audit charter and three-year strategic audit plan aligned to enterprise risk, business objectives, regulatory requirements, and the audit committee’s priorities; continuously update the plan using risk assessment results and emerging risks.
Lead and own the annual risk assessment process across business units, legal entities, geographies, and technology domains to prioritize audit coverage and allocate resources to highest enterprise risks.
Design and execute complex operational, financial, IT, and compliance audits, applying the COSO framework and a controls testing methodology to assess the design and operating effectiveness of internal controls over financial reporting and key business processes.
Oversee SOX program governance for public company reporting requirements, including scoping, testing, remediation tracking, deficiency remediation guidance, and communications with external auditors and the audit committee.
Present high-impact audit findings, risk insights, and actionable recommendations to the audit committee and senior leadership in board-level presentations and clear executive summaries, driving remediation and accountability.
Establish and maintain independent reporting lines to the audit committee and ensure independence from management, delivering objective assurance and protecting organizational integrity.
Build, develop, and lead a global internal audit team, including hiring, performance management, career development, succession planning, and creating a culture of continuous improvement and professional excellence.
Implement a robust quality assurance and improvement program (QAIP) in accordance with The Institute of Internal Auditors (IIA) standards, including periodic external assessments and remediation of QA findings.
Coordinate and manage relationships with external auditors, regulators, and third-party service providers; facilitate external audits and regulatory examinations to minimize duplication and ensure alignment of assurance activities.
Lead enterprise fraud risk management initiatives and direct investigations into suspected fraud, corruption, misconduct, or whistleblower reports, coordinating with legal, compliance, HR, and law enforcement as required.
Integrate data analytics, continuous auditing, and automated testing into audit methodologies to increase coverage, detect anomalies, and enable real-time assurance over large datasets and key risk indicators.
Evaluate the effectiveness of risk management frameworks and monitor remediation of enterprise-level risks, control gaps, and management action plans; escalate unresolved critical risks to the audit committee.
Provide advisory services on emerging risks such as cyber security, third-party and supply chain risk, regulatory change, fintech/crypto exposures, and business model transformation while maintaining independence in assurance activities.
Oversee audit budgeting, resource allocation, and operational efficiency metrics; justify investment in audit technology, staffing, and upskilling to support strategic audit objectives.
Define and enforce audit policies, procedures, working standards, templates, and documentation requirements to ensure consistent, transparent, and reproducible audit evidence and conclusions.
Drive cross-functional collaboration with finance, legal, compliance, IT, operations, and business leaders to ensure remediation actions are realistic, timely, and sustainable.
Monitor key regulatory developments and industry trends, interpreting potential impacts on internal controls, compliance obligations, and required audit coverage for timely response.
Lead post-merger and acquisition (M&A) due diligence and integration assurance workstreams, identifying control gaps and recommending harmonized control frameworks across combined entities.
Champion a risk-aware culture across the organization through training, executive briefings, audit committee engagements, and proactive communication of audit insights and risk trends.
Establish and track meaningful KPIs and dashboards for audit performance, remediation timeliness, control environment health, and value delivered to stakeholders; report progress to the audit committee regularly.
Ensure data privacy, information security, and regulatory compliance are assessed in audits and advise on remediation that balances security, compliance, and business needs.
Oversee vendor and third-party control assessments, SOC reviews, and contract-related assurance to reduce service provider-related risk exposures.

Secondary Functions

Act as a trusted advisor to executive management on governance, risk, and control matters while maintaining objectivity and independence in assurance reporting.
Provide coaching and professional development opportunities to high-potential audit staff, improving technical capabilities in IT audit, data analytics, and regulatory compliance.
Participate in cross-functional steering committees (e.g., ERM, SOX, cyber, privacy) to represent the assurance perspective and align on enterprise priorities.
Lead special projects and ad-hoc assurance reviews requested by the board, audit committee, CEO, or regulators, including independent reviews of sensitive matters and ethics investigations.
Support continuous improvement initiatives, audit automation pilots, and the selection and deployment of audit management software and analytics platforms.
Facilitate internal control training sessions for business process owners and new leaders to improve control design and ownership across the organization.
Serve as the primary liaison for whistleblower programs, ensuring confidential handling, timely investigation, and appropriate remediation or escalation as required.
Maintain professional relationships with external assurance providers, industry forums, and regulatory contacts to anticipate changes and adopt leading practices.
Support enterprise business continuity and crisis response planning by providing assurance over readiness and controls during disruptive events.
Contribute to corporate reporting narratives related to governance, risk management, and internal control effectiveness for inclusion in annual reports and regulatory filings.

Required Skills & Competencies

Hard Skills (Technical)

Deep expertise in internal audit methodologies, including risk-based audit planning, control testing, and audit reporting.
In-depth knowledge of COSO internal control framework, SOX 404 compliance, and experience managing SOX programs for public companies.
Strong understanding of enterprise risk management (ERM) principles and the ability to translate risk appetite into audit coverage.
Technical proficiency in audit and analytics tools such as ACL/IDEA, Tableau/Power BI, Alteryx, Python/R (for analytics), and audit management platforms (e.g., TeamMate, AuditBoard).
Experience auditing IT and cybersecurity controls, cloud environments (AWS, Azure), ERP systems (SAP, Oracle), and third-party/SaaS vendor controls including SOC reports.
Solid accounting and financial reporting knowledge (US GAAP, IFRS) and experience working closely with financial reporting teams.
Proven ability to lead fraud examinations, whistleblower investigations, and forensic data analytics.
Familiarity with regulatory frameworks affecting the industry (e.g., SEC, PCAOB, GDPR, HIPAA, FINRA) and ability to manage regulator interactions.
Competence in designing and implementing continuous auditing/monitoring programs and key risk indicator (KRI) dashboards.
Track record of delivering audit quality assurance programs and completing external quality assessments per IIA standards.
Skilled in conducting M&A due diligence from a controls and risk perspective.

Soft Skills

Executive presence and credibility to influence C-suite and board members; strong audit committee reporting skills.
Strategic mindset with the ability to translate audit insights into business value and practical remediation plans.
Exceptional written and verbal communication skills; ability to distill complex findings into clear, actionable executive summaries.
Strong leadership, team-building, mentoring, and people development capabilities.
High integrity, professional skepticism, and commitment to independence.
Effective stakeholder management and negotiation skills to secure timely remediation and ownership.
Critical thinking and problem-solving skills with a data-driven approach to risk identification.
Adaptability and comfort with change in fast-paced, matrixed, and global environments.
Project management and prioritization skills to handle competing demands and tight reporting deadlines.
Coaching and talent development orientation to grow the audit function’s capabilities.

Education & Experience

Educational Background

Minimum Education:

Bachelor’s degree in Accounting, Finance, Business Administration, Information Systems, or related field.

Preferred Education:

Master’s degree (MBA, MAcc, MSc) or advanced qualifications (CPA, CIA, CISA, CRMA, CFE, CISSP).
Certifications or executive education in risk management, governance, or cybersecurity are highly desirable.

Relevant Fields of Study:

Accounting
Finance
Information Technology / Cybersecurity
Business Administration / Risk Management

Experience Requirements

Typical Experience Range: 15–25+ years of progressive experience in internal audit, external audit, risk management, or relevant advisory functions.

Preferred:

Minimum 10 years of leadership experience managing an internal audit function with direct reporting to an audit committee.
Experience in a public company environment subject to SOX and regulatory oversight, or equivalent large, complex, multi-national organizations.
Demonstrable track record of building and transforming audit functions, integrating data analytics, and delivering measurable reductions in enterprise risk exposure.