More skills needed in internal audit

The role of the internal audit function is expanding and will continue to broaden in the future, according to a Pricewaterhouse-Coopers survey of more than 2,000 internal auditors. In addition to an expanded role in corporate governance, the internal audit function
will also be responsible for elevating the role of risk assessment by identifying and communicating strategic and emerging risks to the CFO and board. Internal audit is also expected to take on an expanded role that goes beyond value protection to value enhancement.

To fulfill this expanded role, the survey found that the capability and knowledge of the internal audit function must increase. Respondents identified critical thinking and analysis, and knowledge of risk management approaches as the top areas to improve (68% and 67% respectively) . The need for increased capabilities and knowledge extends beyond these, however, with at least 60% also seeing a need to improve capabilities in communication, understanding of the organization’s strategy and business model, and experience with technology. About 50% of respondents also see a need to increase leadership, experience in business outside of internal audit, collaboration and teamwork, and qualifications. The majority (58%) intend to close this gap through training, while 29% intend to hire new staff.

John Tabone is CICA’s manager of member value and research services