The Two Systems: Bridging the Gap Between Documented Controls and Operational Reality

This article highlights a critical challenge for internal audit: the existence of two parallel control systems within organizations. While one is formally documented and auditable, the other is an informal, operational system that often dictates actual decision-making, especially under time pressure. Internal auditors must recognize this dichotomy and evolve their methodologies to assess the true effectiveness of controls, rather than solely relying on documented processes that may no longer reflect reality.