A new report explores the long-term impact of the Coronavirus Crisis on internal audit functions around the globe.
The report, “COVID-19 and Internal Audit: Preparing for the New Normal in 2020 and Beyond,” released by the Internal Audit Foundation, the Institute of Internal Auditors, and AuditBoard, provides practical direction as to what internal audit functions can do to support their organizations as they work through the impacts of the pandemic — today and in the future.
Findings were drawn from discussions and recommendations gleaned from many sources, including internal audit function leaders and consultants, AuditBoard’s April 9 “Coronavirus and Internal Audit Webinar” attendees, and The IIA’s Audit Executive Center.
The report and accompanying video cover how COVID-19 is impacting the operation of internal audit departments, the implications for Sarbanes-Oxley compliance, business continuity, the changing risk landscape, where internal audit needs to step up, and what the future holds for internal audit.
“How many of us could have foreseen the changes that have occurred since COVID-19 was first identified? Many, if not all, aspects of our lives have been impacted. As internal auditors, we think about the impact of risk every day,” the report’s authors write. “Going forward, COVID-19 will change how we think about and communicate many of the risks that we may not have fully contemplated before. Our experiences will also cause us to rethink our processes and the value we bring to our organizations.”
According to the paper, current environment offers internal audit leaders a unique opportunity to extend their value beyond traditional audit activities and help drive the future of their business. Embracing the changes that have occurred and helping manage downside risks are additional roles in which internal audit functions can excel.
Richard Chambers, president of the IIA, addressed the impact of the pandemic on the profession in a recent blog post. “I believe the pandemic is pulling back the curtain to show us a glimpse of the future. It has put on display the amazing speed of emerging risks; the global interconnectedness of business, industry, and society; and how we react to adversity as a global community. As practitioners in a profession that is risk-centric, we should glean as many lessons as possible from this trial,” he wrote.
The paper is available for download on the IIA website. 