California CPA November 2024 | Page 10

Report : 20 Years of Transformation in Internal Auditing
NEW REPORT

Report : 20 Years of Transformation in Internal Auditing

It ’ s no secret that the internal audit has evolved significantly over the last two decades and a report from Protiviti , Internal Auditing Around the World , reviews that evolution and several trends that underscore the transformation :
Rise to relevance as strategic adviser : The internal audit function and the role of chief audit executives have evolved from a compliance-focused , backward-looking function to a strategically aligned and value-adding partner to the organization .
Value delivery : The shift from a compliance and controls focus to a wide-ranging mix of assurance and advisory services over the 20 years has played a major role in shaping the view of the internal audit as a function delivering value and providing sought-after strategic input .
Board engagement : Boards have come to rely more on their internal audit leaders to focus and advise on high-risk areas beyond compliance activity such as : cybersecurity , fraud , new technology adoption , market expansion , sustainability initiatives and more .
Technology and data enablement : Technology , particularly data analytics , automation and , most recently , AI , have become integral in modernizing the internal audit function .
Diversity of talent : Leading internal audit functions have invested in attracting , developing and retaining talent with diverse backgrounds and capabilities and have made talent management a core part of their function ’ s strategy . Soft skills ( such as effective communication , creative thinking and problem solving ) are emphasized just as much as more technical skills ( such as knowledge and ability to use analytics solutions and emerging technologies ).
Catalyst for change : Finally , best-in-class internal audit functions act as catalysts for change . These teams provide insights that drive improvement and help their organizations capture opportunity while safeguarding against downside risks .
Read more at protiviti . com / us-en / survey / internalauditing-around-world-20th-edition .

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