The role of internal auditors has evolved significantly over the past few decades, from a primarily compliance-focused function to a strategic partner that helps organizations achieve their objectives. In this blog post, we will discuss the evolving role of internal auditors and the skills and capabilities required to be effective in this role.
1. Business Partner
The internal audit function is no longer just a compliance function. Internal auditors now work closely with other functions within the organization, such as risk management, compliance, and finance, to provide integrated assurance and risk management services. This collaboration helps the internal audit function identify emerging risks early and provide timely recommendations to mitigate these risks.
2. Strategic Advisor
Internal auditors are now expected to provide insights and recommendations that go beyond traditional audit opinions. They need to have a deep understanding of the organization’s strategy, objectives, and risks to provide meaningful recommendations to senior management and the board of directors. This requires a broad understanding of business processes, risks, and controls, as well as the ability to analyze complex information and provide practical recommendations.
3. Risk Manager
Internal auditors play a critical role in helping organizations manage risk. They provide assurance on the effectiveness of the organization’s risk management processes and help identify emerging risks that could impact the achievement of organizational objectives. Internal auditors also work closely with risk management and compliance functions to provide integrated assurance and risk management services.
4. Change Agent
Internal auditors are increasingly involved in driving change within the organization. They work closely with other functions to identify areas for improvement and provide recommendations to enhance the efficiency and effectiveness of business processes. This requires the ability to identify best practices, develop business cases, and manage change initiatives.
5. Trusted Advisor
Internal auditors are expected to be independent and objective, but they also need to build strong relationships with stakeholders across the organization. This requires excellent communication and collaboration skills and the ability to build trust and credibility with stakeholders.
In conclusion, the role of internal auditors has evolved significantly over the past few decades. Internal auditors are no longer just compliance officers, but rather strategic partners who provide insights, assurance, and advice to senior management and the board of directors. To be effective in this role, internal auditors need to have a broad range of skills and capabilities, including business acumen, risk management expertise, change management skills, and strong communication and collaboration skills. By embracing this evolving role, internal auditors can continue to add value to the organization and play a critical role in achieving its objectives.
