Now, more than ever, internal auditors must understand that they will be called upon as permanent partners in a variety of industries. The internal audit industry is experiencing a digital transformation that is echoing the new challenges that businesses across the board are facing. The role of an internal auditor is quickly being reassessed. Every industry will soon require continuous auditing to track risk and fraud. Additionally, data analytics is a top concern that needs improvement. With data reflecting trends that shift all too frequently, businesses now expect a responsive and flexible approach, prompting internal auditors to seek additional training.
Internal auditors must manage technology-related risks.
New technology and subsequent legislation, such as that emerging in the financial services industry, forces internal auditors to manage risks that didn’t exist before. Technology, such as artificial intelligence (AI), has a significant impact on risk management. With a push to have more efficient digital interfaces, internal auditors must develop an understanding of digital-age concerns, such as cybersecurity. The cloud has also changed software dramatically, including internal audit management apps that run in real time.
The future is uncertain.
Internal auditors will undoubtedly have their work cut out for them because rules and regulations across the world change frequently. With the help of a skilled internal auditor, businesses will rely on integrated governance, risk, and compliance programs (GRC). Internal auditors can no longer utilize a compliance item checklist in a world that requires a system of intelligence that adapts to progressing needs. Internal auditors have no way to predict the future, but as partners, they can help assess risks as they develop.
Outsourced business functions have internal impact.
To assume that an internal audit department doesn’t have to reflect outsourced business functions could be detrimental to the auditor and the partner business. GRC programs cannot be exclusive to the inner functions of a business, because vendors and their supply chains have a direct impact on financial outcomes. As risk and fraud attempts expand with every outsourced function, internal auditors must increase their understanding of emerging technology.
Consumer risk must be addressed.
One trend that can’t be ignored is the increasing impact of consumer demands. Consumers often have higher standards than those that are demanded under regulations, as demonstrated by the Uber app ban driven by social media platforms. Not only do consumers want to see results instantly, but businesses must meet personal standards. Assessing consumer risk issues is something that an internal auditor must consider, because one PR mistake could destroy an entire brand.
Internal auditors must sharpen their skills to meet new industry demands. The internal audit profession is heading in an innovative direction, and businesses will demand a knowledgeable specialist to help keep them apprised of risks. Internal auditors will be called upon to help prepare other industries for the future, playing a significant role across industries now more than ever.
