ORLANDO,
Fla., July 15, 2024 /PRNewswire/ --
The IIA's Internal Audit Foundation released its "Internal
Audit: Vision 2035 – Creating Our Future Together" report at the
International Conference in Washington,
DC today. The findings from the Vision report, gleaned from
feedback from more than 7,000 practitioners and stakeholders around
the world, lay bare the extent to which technological change will
continue to impact the internal audit profession. The results
underscore the need for internal audit practitioners to expand the
scope of their services and embrace emerging technology in order to
continue to provide value to organizations in the years to come. in
order to continue to provide value to organizations in the years to
come.
Embracing Technological Change
The report
identified several positive technology-driven changes that are
expected transform internal audit over the next decade. Notably,
97% of participants said they expect technology to increase the
complexity and volume of data available for auditors to analyze,
and another 93% believe that new technology will allow audit
functions to develop better insights for recommendations to
stakeholders. Regarding AI in particular, participants agree that
AI will aid in the analysis of more in-depth insights, however less
than half (48%) reported that they are currently involved in
AI-related activities.
"The takeaway from the research is clear: Internal audit must
rapidly transform or risk becoming irrelevant to stakeholders,"
said Anthony Pugliese, CIA, CPA,
CGMA, CITP, President and CEO of The Institute of Internal
Auditors. "The profession must shift its attention from the
potential risks that technology poses to internal audit to
embracing how it can optimize operations and expand internal audit
capabilities. Leveraging new technology to provide more strategic,
actionable insights will enable practitioners to proactively help
their organizations stay ahead of emerging trends and risks."
Expanding Advisory Services
Findings from the
Vision report also revealed an increasing need for internal audit
functions to expand the scope of their services and take on a more
strategic advisory role within organizations. When asked to
consider the value that internal audit can offer through both
assurance and advisory services, 79% of participants agreed that
advisory work will become more essential to audit functions in the
years to come while playing a bigger role in internal audit plans.
According to respondents, the top areas where internal audit
functions can provide the most assurance and advisory services
include operations and processes (87%), compliance (82%), and risk
management (77%).
"Our stakeholders already expect more from the internal audit
function, including being versatile and agile to provide a broader
array of support inside the organization beyond traditional
assurance," said Warren Stippich,
Jr., CIA, CRMA, CPA, President of the Internal Audit
Foundation and National Managing Principal – Advisory Services
Quality and Risk at Grant Thornton Advisors LLC. "The profession
needs internal audit functions to accept the challenge of being
able to accomplish the basic objectives of its annual internal
audit plans while also having the ability to pivot to provide
support through an advisory lens."
Additional Findings
- Preserving independence and objectivity of the internal
audit function
- Just over half of respondents (53%) said their organizations
understand the importance of independence.
- Another 45% of respondents' organizations moderately or do not
understand its importance.
- Shifting public and stakeholder perception of the internal
audit profession
- Half of respondents reported that being misunderstood or
undervalued represents the greatest challenge for the
profession.
- At the same time, 45% of respondents indicated a need for more
support from leadership and stakeholders.
- Growing our pipeline to sustain our profession
- When respondents were asked about top barriers keeping them
from the internal audit profession, 33% of students cited
inadequate networking opportunities with internal audit
professionals, followed by lack of mentorship or role models within
the profession, and misconceptions about career profession and
opportunities within internal audit, both 28%.
- From the educators' point of view, 54% reported lack of
awareness of understanding of the internal audit profession as a
top barrier keeping students from the profession.
"The findings suggest that there is an opportunity and a strong
need for the profession to increase awareness of the value of
internal audit, while providing more opportunities for students and
young professionals to explore it as a career path. Prioritizing
the talent pipeline is crucial as we move toward achieving the
profession's envisioned future," said Pugliese.
The Role of The IIA
The Vision report provides a
roadmap not just for practitioners but also for The IIA itself as
it leads the way to making Vision 2035 a reality. Priorities for
The IIA in the years to come include continuing to advocate for the
profession globally by networking with regulators and other key
stakeholders as well as producing insightful and actionable
research, cutting edge resources and educational opportunities
designed to help audit functions stay ahead of and embrace emerging
trends.
In addition to the Certified Internal Auditor® (CIA®) and
Certified in Risk Management Assurance® (CRMA®) designations, The
IIA offers a wealth of online learning resources, and professional
development events to help increase the visibility of the
profession and ensure a strong pipeline of talent to carry the
profession into the future. The Global Internal Audit Standards,
effective in January 2025, provide
practitioners with a comprehensive guide to key internal audit
principles and responsibilities.
About the Vision 2035 Report
Findings from the Vision
2035 report are based on extensive quantitative and qualitative
research conducted over a 12-month period. The feedback is sourced
from over 7,000 internal auditors, IIA global and institute
leaders, board members, audit committee chairs, senior executives
(C-suite), regulators, educators, students, and more. The research
is also developed from analysis of social media data, industry and
academic literature, visioning publications, and trend reports.
Download the full Vision 2035 report.
About the Internal Audit Foundation
The Internal
Audit Foundation, supported by the generosity of its donors,
advances the practice of the profession by executing global
research to explore issues impacting the profession and funding
academic initiatives that support the pursuit and promotion of
internal audit education within institutions of higher
education.
About The Institute of Internal Auditors and the Internal
Audit Profession
Internal auditing is an independent,
objective assurance and consulting activity designed to add value,
improve an organization's operations, and help organizations meet
their goals. Internal auditors are strategic business partners who
bring an in-depth understanding of business culture, systems, and
processes, which helps them evaluate and improve the effectiveness
of risk management, control, and governance processes.
The Institute of Internal Auditors (The IIA) is an international
professional association that serves more than 245,000 global
members and has awarded more than 195,000 Certified Internal
Auditor (CIA) certifications worldwide. Established in 1941, The
IIA is recognized throughout the world as the internal audit
profession's leader in standards, certifications, education,
research, and technical guidance.
For more information, visit theiia.org.
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SOURCE The Institute of Internal Auditors