There’s a palpable concern for the future among internal auditors. I wouldn’t quite call it anxiety, but there’s certainly some underlying angst about how the next few years will play out for internal auditors.
There’s consternation, for sure, over how things like artificial intelligence, increasing digitalization, the data of everything, climate change, political uncertainly, and geopolitical tension will impact the business world as a whole and internal auditing in particular. There’s maybe never been more uncertainty about what the world will look like and how commerce will be conducted in even just the next five years.
Upheaval and change will rule the day. If we thought the disruption the Internet begot around the turn of the century was wild, experts and futurists are saying, “You ain’t seen nothing yet!” They expect AI, robotics, and other technology advancements to change the world in sudden and profound ways. Indeed, ask a leading internal auditor and they will tell you that it’s already happening and moving faster than you think.
Still, internal auditors are not a group of people who are given to the tendency to shrug their shoulders and say, “come what may.” If you look closely, you’ll also detect an excitement and confidence about what the future holds for the internal auditing profession. After all, it’s when things are moving fastest and changing the most rapidly that risks arise, strong control and structure is required, and solid assurance is most needed over what is happening inside and around our businesses and organizations. Sounds like a job for internal audit. And smart internal auditors sense more of an opportunity than a threat and they are positioning themselves and their departments to thrive amidst the chaos.
As we look back on the top internal audit articles of 2022, we see many of these themes emerging in the articles that ranked the highest among you, our readers. Internal audit departments are working hard to understand AI and figure out how to use it to their advantage, but in a safe and sensible way. At the same time they may have some concerns over how it will change their jobs, which is why “Could AI Technology Replace Internal Audit?” ranked among our most read articles of 2023. Similarly, internal auditors are looking for any help they can get to envision what the future will hold and attempt to prepare for it no matter how nebulous it seems. We hope to offer some help with our article, “Repositioning Internal Audit for the Future.”
While considering the future, its also clear that internal auditors want to maximize their value in the organization right now. Another high-ranking article, “The Seven Worst Words Internal Auditors Use,” implored internal auditors to chose their words carefully, to say what they mean and mean what they say. Another indication that maximizing value is on internal auditors’ minds shows with the popularity of the article, What the Audit Committee Really Wants from Internal Audit. These are indications that internal audit leaders realize that to take on the challenges of an uncertain future, they must have their audit houses in order.
Looking Forward to 2024
As we look forward into 2024, these underlying trends will continue to challenge and shape internal audit in the coming year. Let’s hope that a resilient economy and low unemployment will stave off a recession. Let’s hope our leaders, both nationally and globally, can learn to find common ground and focus on solving our collective challenges, rather than choosing only to battle each other.
Like the last few years, many of us may be happy to turn the page on this turbulent year, with hopes that 2024 will bring better tidings. We at Internal Audit 360° look forward to covering these critical issues and continuing the discussion on how internal audit can excel and make great contributions to the overall success of the organization.
We’d also like to take this opportunity, from our families to yours, to wish you a joyous holiday season, a Merry Christmas to those who celebrate it, and a happy and safe New Year!
Top Internal Audit Articles of 2023:
1 The Seven Worst Words Internal Auditors Use
Words matter and good internal auditors choose them carefully. But auditors are also as prone to using professional jargon as anyone. These are words that have become so commonplace that we might not think too much about what they really mean, especially to others. We all use them. Yet, how they might be interpreted may not be how we intended. So, what can we do about it?Here are seven words that we should consider their meanings more closely and either use them more carefully or strike them from our vocabulary completely.
2 What the Audit Committee Really Wants from Internal Audit
For many internal auditors, the audit committee is a bit of an enigma. Most of us help the chief audit executive (CAE) or other internal audit leader with materials and content to provide to this subgroup of the board of directors. Much of our work, in summary fashion, ends up there. But, for the most part, we only know what happens behind the closed doors of the boardroom if our CAE conducts a post-meeting debrief. Yes, we know that the audit committee is important. We know that they take our work seriously. But what do they really want from us?
3 Repositioning Internal Audit for the Future
To support internal audit in its progression and transition into the future, here is some perspective on practices to stop (or reduce) and practices to start. There are no perfect answers, and there will always be a continuum of internal audit capabilities and automation. However, the key point is to be a progressive team and to value the continuous learning and improvement needed to position internal audit for greater impact and relevance. Having a clear audit vision will help you align your methodology and practice changes, over time. The list inside outlines some key areas for reflection to help you become the internal auditor and audit team of the future.
4 Is Internal Audit Being Asked to Do too Much?
From supply chain disruptions to cybercrime; from environmental concerns to labor shortages, the list of challenges confronting most companies has evolved quickly and dramatically over the past few years and even months.
Such speedy developments are expanding the types of risks many internal audit departments must identify and assess. Given that traditional financial control and reporting risks aren’t going away, these shifts prompt the question: Is internal audit being asked to do too much? Or, is this a natural evolution of internal audit’s role?
5 Could AI Technology Replace Internal Audit?
With the rise of artificial intelligence and ChatGPT, sometimes I think that we internal auditors will all soon be out of a job. But then I have a very boring task to do, and I wonder why I can’t just ask a machine to do it! So, what types of tasks are we currently getting machines to do and what types of tasks should we soon be able to get machines to do? And how will we get machines to do them? These are important questions, and the internal audit functions that find good answers to them will be ahead of the game.
Achieving Success in 2024
We at Internal Audit 360° will have much more to say on these issues and many other internal audit topics in 2024, and we look forward to bringing you more articles, more internal audit news, and more coverage of the internal audit profession in the coming year. Have a wonderful year ahead, and we wish you much success in your internal audit pursuits.
One final word: We hope we can count on your support in the coming year. Please help by telling your friends and colleagues about us, like and share our links when you see them on social media, click on the ads on our site, and by doing these small things that are critical to our success:
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Thank You! Here’s to a happy, healthy, and successful 2024!
Joseph McCafferty is Editor & Publisher of Internal Audit 360°