The roles of audit and risk committees in modern charities are significant. Providing oversight of financial, operational and compliance risks, their contributions cannot be underestimated. Yet even with these structures in place, a truly comprehensive level of assurance is not always achieved.

What they often fail to address, either at all, or at least on a consistent basis, is internal audit.

It’s true that internal audit is not mandatory, and it does come with a cost. But that investment can deliver real value and impact. That impact might be the identification of an underlying niggle before it becomes a bigger, more serious issue. At other times, it might enable an organisation to investigate and resolve an emerging concern quickly.

Whilst in some instances, assurance gaps can be addressed from existing capacity, they do not always provide the necessary level of independence and objectivity that a dedicated review can bring.

Management reports and risk registers both provide invaluable assurances but can lack an objective perspective. As a result, boards may unknowingly rely on an incomplete view of their organisation and in doing so, leave potential risks untested and opportunities for improvement unexplored.

Importantly, internal audit doesn’t need to be a permanent or costly function. Even a small, periodic review of key processes or high-risk areas can deliver significant value. Beyond this insight, internal audit can also act as a deterrent, signalling that the organisation takes governance seriously.

A practical step that all charities can take, is also a simple one.

At your next meeting, take a few minutes to review your current sources of assurance. Ask yourself and your team where there might be gaps? Could a short-term internal review strengthen oversight in any area?

For many boards, simply acknowledging this assurance gap and having that conversation is the first step towards stronger oversight and may even reveal practical ways to strengthen assurance.

In doing so, they may uncover practical ways to strengthen assurance – whether by drawing on internal capacity or commissioning independent internal audit support – giving trustees greater confidence that their decisions are based on the most complete and reliable information available and ultimately helping them better serve their beneficiaries.