Why now is the time to build a world-class internal audit function – and what should it look like?  

There’s never been a better time to be in internal audit, according to Vishal Arora, Chief Audit Executive (CAE) and Head of Global Assurance at steel and mining conglomerate Arcelor Mittal. In conversation at this year’s Internal Audit Conference on 30 September, he will explain how developments he has seen over three decades in the profession are creating new opportunities to shape a world-class internal audit function.

The internal audit role is changing, along with technology and the global business environment – “long-term now means six to nine months,” Vishal says. Internal auditors should accelerate the investment they make in themselves and in their teams to seize the opportunities arising from it. He argues they are in a strong position to do so.

“Internal auditors should be very proud of what they’re doing,” he says. “If you choose this profession, you’re challenging yourself. There’s lots to learn, but also lots to gain.”

Many things have changed since he joined the profession. “We’re no longer regarded as box-tickers or watchdogs. Boards and Executives are turning to us for insights and guidance and when this happens, we have succeeded. This is the right time to be in internal audit – we must shape our future,” he says.

But, with success comes responsibility. CAEs and their teams must constantly evolve to stay ahead, he will advise conference delegates.

“Are we adding value as a strategic partner, or are we waiting to be asked for our opinion?” he says. “If the board appreciates what we can offer, we must deliver value or we don’t deserve a seat at the table.”

Technology is critical, but it is just one element. Vishal believes that all internal auditors must embrace AI and data analytics skills, but tech will never replace a good internal auditor or Internal audit function. 

“There’s a new game in town, and you will become a better internal auditor by learning to play it,” he says. “CAEs must train their teams to use AI and process intelligence tools, but we must also encourage people to gain further professional accreditations." 

Recruits to the internal audit team of the future will need AI capabilities, but continual training and development will be more important than current skills, he adds. AI is new to everyone and it’s impossible to guess what will be “normal” next year.  

Vishal says, he looks for job candidates who are hungry to understand the business environment, how this is changing, and how they can use this knowledge to benefit the business. 

Human skills are essential. “We all need people who can engage with stakeholders, speak their language and articulate what they need to know. Communication skills and business acumen become ever more important as internal auditors progress into senior roles,” he says.

Critical judgment and acumen 

Regulations and global geopolitics are developing almost as rapidly as AI. Internal auditors’ critical judgment and ability to assess risk relevance is therefore vital. 

“Is your internal audit function a cost centre or a profit centre?” Vishal asks. “Many teams are proving that they add quantifiable value to the business, but some are still seen as a cost centre.” 

What will make or break internal audit functions is how well everyone in the team understands the business, he explains. Those that don’t keep pace with emerging risks and evaluate their potential impact won’t offer value. 

Knowing how to present information is as important as knowing which information is relevant. “Showcasing the effect of not doing something to the stakeholders is more likely to trigger action than presenting a list of recommendations,” he points out.