Risks create opportunities for internal audit, so plan now to seize these in 2025
View from the Chartered IIA
Happy New Year! As we leave the festive season, we start to look forward to lighter, longer days and the first signs of spring. Similarly, the Chartered IIA and our members can return from holidays to view afresh the outlook for the internal audit profession and plan how best to ensure the opportunities before us will bear fruit in 2025.
We already know that organisations will need internal audit insights more than ever, even if they do not all appreciate that at the moment. Of course, many of the uncertainties and challenges of 2024 are still with us and will continue to develop in the coming months, but these also represent significant opportunities for the internal audit profession and for the Chartered IIA. We must seize these and be ready to respond to new challenges as they arise.
Geopolitics and economic conflicts will continue to create uncertainty and disruption and compound the global challenges facing organisations. Every country is facing unprecedented threats from rapidly evolving cyber crime and climate change and, in the UK and EU, new regulations and legislation will require a rethink of controls and new ways to identify and mitigate rapidly emerging risks.
However, risks also present great opportunities for internal audit to add value. AI and digital revolution offer opportunities for efficiency and change. Real-time information enables internal auditors to focus more on the future – and on the opportunities that organisations can take up if they have the assurance on which to base decisions. We will continue to explore these areas with you to help you embrace this new world and get ahead of the game.
We will continue to provide input to government debates on audit reform and to campaign for clear guidance on the importance of internal audit functions in critical infrastructure and utility companies. This is vital to our national security, and we all need internal auditors to play an active and valued role.
At the same time, we will be targeting audit committee chairs and non-executive directors to ensure they fully appreciate the role of internal audit. It’s essential that they know what good internal audit looks like and how it can support them in their roles, so that they then support internal audit leaders to provide guidance on critical issues.
Diversity and skills
Seizing opportunities also depends on our members having the resources and skills to provide the insights boards require. Attracting and training the best talent is vital to every profession and we need the prospect of a career in internal audit to ignite ambition among people who can take it forward and develop best practice in years ahead. Every function must draw on the widest possible pool of talent, with diversity of thought, perspective and experience.
We need to increase knowledge of the profession and ensure there are opportunities for people from all backgrounds to gain professional internal audit skills. And we need the support of our members in doing this. Internal audit professionals can help to promote understanding of the profession and its many rewards in local colleges and schools. Some of our regional committees have started to help with this, which has already borne fruit.
We have begun to review our education and development opportunities in the light of the Global Internal Audit Standards and our Code of Practice. We will be explaining the changes and how these will help internal auditors to develop the skills to take up opportunities in the coming months, so watch for articles and blogs explaining what we’re doing.
Our communities also offer active support for specific groups of internal audit professionals across the UK and Ireland. They are currently planning their activities for the year ahead, so check what they are doing and pass this information on to colleagues or team members who may also benefit.
Tell us what you need.
It’s important that we really understand what members want and need from us, so we will be focusing on membership engagement throughout the year. One element will be a survey of members that will shape our activities in the years to come, so please watch out for it and give us your feedback.
Planning for our conferences and events for 2025 is well underway and we will be promoting and featuring the highlights throughout the year. We also want to share and celebrate those who are demonstrating innovation and best practice in internal auditing. The Audit & Risk Awards nominations for 2025 are still open, so I urge you to consider entering.
Opportunities and continuous improvement are also the focus of our external quality assessment (EQA) service. I encourage anyone who is undertaking an EQA in the coming year to consider what the Chartered IIA service offers. Our assessors will help you get the most from your EQA experience as they have professional breadth and an in-depth understanding of current developments in the wider profession for organisations of all sizes. In a year when we will start assessing against the Global Standards, this is particularly important.
We want every team that undergoes an EQA to come out with inspiration and ideas about how they can develop further. This is the future of our profession and is central to our work and our reputation.
Last, but not least, we will continue to work closely with IIA Global, ECIIA and other Affiliates to promote the value and professionalism of internal audit across the world.
2025 will be a challenging year, but the opportunities this presents could put internal audit and the Chartered IIA in a stronger, more valued, position than ever before. I am excited at the prospect of working together to help you to help organisations emerge stronger and more resilient whatever the challenges.