Maximizing Audit Value Through Root Cause Analysis: A Strategic Framework Aligned with the 2024 Global Internal Audit Standards

Internal audit functions are undergoing a profound transformation, shifting from compliance-oriented assurance activities toward value-added strategic advisory roles. This paper examines how Root Cause Analysis (RCA) methodologies can be systematically embedded within contemporary internal audit frameworks to enhance audit effectiveness, organizational learning, and governance resilience. Aligned with the 2024 Global Internal Audit Standards (GIAS), this study employs a qualitative research design grounded in an interpretivist epistemological stance, drawing exclusively on documentary review of organizational audit records, audit committee reports, corrective action logs, internal audit charters, and policy documents across three organizational case studies. The study evaluates five principal RCA methodologies, the 5 Whys, Fishbone (Ishikawa) Diagram, Pareto Analysis, Failure Mode and Effects Analysis (FMEA), and Fault Tree Analysis (FTA), through systematic analysis of how their application is inscribed in, and traceable through, organizational documentation. Thematic analysis of documentary data reveals that RCA integration substantively transforms the nature and traceability of audit outputs, repositioning audit findings from retrospective symptom documentation toward actionable systemic diagnosis. The paper proposes a risk-calibrated RCA intensity model, a competency development roadmap, and a standardized methodology manual template grounded in documentary evidence. A dedicated limitations section acknowledges the interpretive scope of the study and charts directions for future research.

root cause analysis, internal audit, governance

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