In a recent issue of The Bulletin, we discuss Protiviti’s future auditor vision. This is something about which I am particularly passionate, as I think it speaks on many levels to how internal audit executives can make a difference in their organizations.
The future auditor is a chief audit executive (CAE) who is (a) positioned to be objective with regard to operating units, business processes and shared functions, (b) vested with a direct reporting line to the board of directors, (c) recognized throughout the organization as a positive change agent and (d) recognized by executive management and the board as a valued sounding board in safeguarding the adequacy and effectiveness of activities that really matter to the organization’s success.
We have long supported The IIA’s definition of internal auditing. The future auditor vision is all about taking concrete steps toward making the future state envisioned in The IIA definition a reality. We believe that executive management and boards of directors’ expectations of the internal audit function continue to rise. Therefore, CAEs must continuously upgrade their capabilities to keep pace with these higher expectations and add value.
"Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes."Source: The Institute of Internal Auditors (IIA)
12 ways the future auditor can contribute value
1. Think more strategically when analyzing risk and framing audit plans.
2. Provide early warnings on emerging risks.
3.Broaden the focus on operations, compliance and non-financial reporting issues.
4. Strengthen the lines of defense that make risk management work.
5. Improve information for decision making across the organization.
6. Watch for signs of a deteriorating risk culture.
7. Expand the emphasis on assurance through effective communications with management and the board.
8. Collaborate more effectively with other independent functions focused on managing risk and compliance.
9. Leverage technology-enabled auditing.
10. Improve the control structure, including the use of automated controls.
11. Advise on improving and streamlining compliance management.
12. Remain vigilant with respect to fraud.
This post was published originally on The Protiviti View by Protiviti Inc. Copyright 2014. Protiviti is a global consulting firm that helps companies solve problems in finance, technology, operations, governance, risk and internal audit (www.protiviti.com). The Protiviti View is hosted by Jim DeLoach, a Protiviti Managing Director, and features regular contributions from him as well as other Protiviti subject-matter experts. Follow Jim on Twitter @DeLoachJim.