The willingness of the internal audit function
to be bold and adopt an innovative mindset has transformed the
industry
MENLO
PARK, Calif., July 30,
2024 /PRNewswire/ -- The internal audit function has
evolved significantly over the last two decades, according to the
20th anniversary edition of the global consulting firm Protiviti's
Internal Auditing Around the World® report.
The milestone report, "Exploring a Universe of Experience as a
Launchpad to the Future," analyzes how internal audit has
transformed over the past 20 years and provides strategic
considerations to launch internal audit teams forward.
To undertake a technology-driven review of previous reports, the
20th edition utilized Protiviti's proprietary generative AI
tool to review the past 19 volumes of the series to identify
themes and trends. The series collectively contains 244 profiles of
leading internal audit functions and more than 460,000 words of
commentary and insights.
"Internal audit leaders must be bold, willing to explore and
expand into new frontiers — serving as a guiding star, steering
organizations toward a resilient and adaptive future," said
Andrew Struthers-Kennedy, global
leader of Protiviti's Internal Audit and Financial Advisory
practice.
The report revealed several trends underscoring the
transformation of internal audit functions:
- Rise to relevance as strategic adviser: The
internal audit function and the role of Chief Audit Executives
(CAE) have evolved from a compliance-focused, backward-looking
function to a strategically aligned and value-adding partner to the
organization.
- Value delivery: The shift from a compliance and controls
focus to a wide-ranging mix of assurance and advisory services over
the 20 years has played a major role in shaping the view of the
internal audit as a function delivering value and providing
sought-after strategic input.
- Board engagement: Boards have come to rely more on their
internal audit leaders to focus and advise on high-risk areas
beyond compliance activity such as: cybersecurity,
fraud, new technology adoption, market expansion,
sustainability initiatives and more.
- Technology and data enablement: Technology, particularly
data analytics, automation and, most recently, AI, have become
integral in modernizing the internal audit function.
- Diversity of talent: Leading internal audit functions
have invested in attracting, developing, and retaining talent with
diverse backgrounds and capabilities and have made talent
management a core part of their function's strategy. Soft skills
(such as effective communication, critical and creative thinking,
and problem solving) are emphasized just as much as more technical
skills (such as knowledge and ability to use analytics solutions
and emerging technologies).
- Catalyst for change: Finally, best-in-class internal
audit functions act as catalysts for change. These teams provide
insights that drive improvement and help their organizations
capture opportunity while safeguarding against downside risks.
This year's report outlined five strategies that CAEs and
internal audit teams should take to elevate their functions, which
include prioritizing transformation, leaning on technology,
cultivating talent, adopting an innovation mindset and acting as a
strategic partner through collaboration and communication. The
report points out that these actions will help CAEs and their
teams continue to be strategic, highly relevant, value- and
opportunity-oriented, risk-centric, and technology-enabled
advisers.
Resources Available
The report, "Exploring a Universe of Experience as a
Launchpad to the Future," and the 'Notable Internal Audit
Milestones' one-pager are available here.
About Protiviti
Protiviti (www.protiviti.com) is a global consulting firm that
delivers deep expertise, objective insights, a tailored approach
and unparalleled collaboration to help leaders confidently face the
future. Protiviti and its independent and locally owned member
firms provide clients with consulting and managed solutions in
finance, technology, operations, data, digital, legal, HR, risk and
internal audit through a network of more than 90 offices in over 25
countries.
Named to the Fortune 100 Best Companies to Work
For® list for the 10th consecutive year,
Protiviti has served more than 80 percent
of Fortune 100 and nearly 80 percent of Fortune
500 companies. The firm also works with government agencies and
smaller, growing companies, including those looking to go public.
Protiviti is a wholly owned subsidiary of Robert
Half (NYSE: RHI).
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SOURCE Protiviti