View from the institute: Trust – seize the opportunities

Times of rapid change, global disruption and unpredictable emerging risks present huge challenges, but also opportunities for internal auditors to show their value. More than ever, organisations – and society generally – need people who can verify the accuracy of assertions about everything from environmental and social practices to financial stability and strong corporate governance procedures. Trust is vital to the way our society operates and it has been undermined by disinformation, corruption and corporate collapses.

This must change. What internal auditors do is satisfy the need or desire for trust. That is a gift that, more than ever, can counter the lack of trust elsewhere. One of our priorities for the coming year is to look at how we can raise the profile of the profession, so that internal auditors are recognised for what they contribute. Stakeholders, internal and external, need to understand that internal audit can provide the assurance, advice and confidence they need, when they need it. The current environment means the door is more open than it may have been in the past and internal auditors must ensure that they are the first through it, demonstrating that they are well placed to fulfil this need.

As your institute, we too have a role to play in raising the profile of the profession and encouraging more people into it. We need to celebrate positive examples of your work, both internally and externally. This is what makes our annual Audit & Risk awards so valuable – and not just for the winners. We can all learn something from innovative teams and share the positive impact of their work. This year’s award winners will be announced at a celebratory event on 22 June and articles on the winners will appear in Audit & Risk in the following months.

We also need to work more closely with universities (given my background, I would say that, but it is true). I wonder how many of you are aware that there is an annual European academic conference on Internal Audit and Corporate Governance? I discovered it almost by accident – and now I am one of their speakers talking about what the Chartered IIA does. I want us to reach a position where, for example, people graduating from a business school understand what an internal auditor does and how this differs from external audit. I want them to appreciate the breadth of your work and the satisfaction that you get from making the world a more trustworthy place.

Many young people say that they are looking for a job with a sense of purpose – internal audit can offer that.

But it isn’t just about bringing in new people. We also need to support the development and progress of those already in the profession. This is where groups such as Women In Internal Audit, the Aspire Community for those new to internal audit, and the new Internal Audit Race and Ethnicity Community come in. These are welcoming communities, so if you would like to join one or more of them, or find out what is involved, please get in touch. Internal audit leaders keen to attract and develop their talent should also be aware of the support available. We have groups and forums for audit leaders and for those in specific sectors or working on audit topics such as data analytics. These all offer help, support and advice.

There is an onus on us to ensure the institute is providing development and education routes to support the profession. We must stay relevant by helping you to stay relevant – by updating our programmes and creating new courses on emerging topics. We also need to think about how we deliver such learning. These are crucial questions for the entire internal audit profession, which is one reason why IIA Global is currently consulting on an important overhaul of the International Professional Practices Framework (IPPF). Members of the Chartered IIA who have not yet read or commented on the proposed new Global Internal Audit Standards should do so before the end of May. These opportunities for substantive change don’t come along often, so seize the day.

In the UK and Ireland, we are working hard to help those already in the profession and leading it, to stay up to date with the latest risk information and best practice. One important element of this is our annual Risk in Focus survey, which will be published in September. This provides an opportunity for those leading internal audit functions and for audit committee members and executive officers to benchmark their own perceptions of the risks facing their organisations with others across sectors and across Europe. It can be used to initiate conversations about risk and to increase awareness of changing risk priorities.

We also recently published a report entitled Navigating Geopolitical Risk to help members think through the current period of intense geopolitical uncertainty. Risk in Focus 2023 found that these risks are moving rapidly up the risk agenda, but that internal audit spends little time auditing them. This report, delivered with Airmic, is intended to help members develop their responses.

Keeping up to date and connected with what other people in equivalent roles are doing is vital. This can be hard, particularly for those in smaller teams. One of the benefits of being part of the institute is that you can access not just research, but also the people who are already working on, or who have expertise in, areas where you have little experience or need to develop further. Regional conferences and our annual Internal Audit Conference in October are useful sources of information and inspiration, but so too are the many local events taking place around the country. Our forums and working groups not only provide learning opportunities and inspiration, but also offer informal networking opportunities and a chance to find out what peers are doing elsewhere. Our training courses provide professional expertise, so attendees can emerge with ideas and knowledge well beyond the specified topics. They are also a way of extending your own list of useful contacts.

Someone recently told me that they had “survived” an internal audit. This perception does nobody any good. We need to change it if we are to seize the opportunities for the profession and provide the support organisations desperately need to face the future with confidence and trust. 

This article was published in May 2023.