Introducing Vision 2035
Anthony Pugliese (IIA President & CEO) avaa Internal Auditor -lehden tuoreessa ”Voice of the CEO” -blogissa VIsion 2035 -projektin tuloksia. Raportti koostaa informaation jota kerättiin vuoden ajan yli 7000:lta sisäiseltä tarkastajalta ja sidosryhmältä, 155:ssä maassa, ja maalaa kattavan kuvan sisäisen tarkastuksen tulevaisuudesta. Pugliese kiinnittää huomiota mm. siihen, kuinka paljon teknologiset muutokset tulevat vaikuttamaan sisäisen tarkastajan ammattiin – ja kuinka ne hyödynnetään.
In the coming years, the internal audit profession is poised to undergo a rapid and extensive shift, driven by emerging technologies, a changing risk landscape, and new business models. On behalf of The IIA and the Internal Audit Foundation, I recently had the honor of introducing Vision 2035 – Creating our Future Together at our International Conference. Vision 2035 revealed what internal audit will ideally look like in 2035 and what we need to do as a profession to make this vision a reality. Vision 2035 lays the roadmap for what we can do to take on a more forward-looking role and transform for the future.
In the past, internal audit has been viewed as a compliance and assurance function, often perceived as a necessary but somewhat intrusive process. The findings from Vision 2035, gleaned from more than a year of research involving over 7,000 internal auditors and stakeholders in 155 countries, underscore the need to shift these perceptions and promote a more educated and holistic understanding of the value internal audit provides to organizations.
No longer confined to traditional perceptions, internal audit is emerging as a strategic advisor in driving organizational success. In charting our path forward, we must adapt to evolving stakeholder needs and a changing risk landscape, while also giving new talent a seat at the table. As we move toward creating the future of internal audit together, there is immense opportunity to overcome both current and future obstacles, while embracing new opportunities.
Embrace Technology
The rapid advancement of technology is not stopping for anyone, including us. While it brings its own challenges, it also presents incredible opportunities for internal audit to optimize operations and strengthen the value we provide to stakeholders.
In Vision 2035, respondents across all regions and roles indicate that new technologies would influence how internal auditors perform their work, improve the quality of engagements, and provide new opportunities to add value. Notably, 92% of respondents agree that new tech is key to internal audit adding more value to their organizations.
Time and time again, technology is cited as having the greatest potential impact on the internal audit role in the next 10 years. It is critical that we build a strong understanding not just of the potential risks, but of the value that technological transformation can offer internal audit. The research also reinforces an overall optimism around artificial intelligence (AI), though less than half of the respondents report using AI themselves. This indicates a significant opportunity to better leverage technology and expand AI-related activities to avoid being left behind in the rapidly evolving technological landscape.
Expand Our Scope
The scope of internal audit is expanding beyond financial and compliance services to encompass operational and strategic dimensions.
As outlined in Vision 2035, most current audit scopes focus on regulatory and internal policy compliance, followed by fraud and risk management, governance and culture, and information technology. However, the landscape is shifting, and many expect cybersecurity and sustainability to be included in future audits much more often. In fact, 60% of respondents cite cybersecurity as the top area expected to be part of audit engagements in the future. This provides internal auditors with a multifaceted, holistic view of the organization’s health and performance, and can help reveal hidden risks and opportunities before problems occur.
The Vision findings also reveal a growing need for internal audit functions to connect with strategy and take on a more strategic advisory role that is aligned with the organization’s operational objectives, while maintaining a clear and distinct reporting structure to the board.
According to the report, 79% of respondents believe that advisory work will expand and expect those services will become more essential. By aligning audit activities with the organization’s strategic objectives, internal audit can provide advice and forward-looking strategic insights for the organization, while ensuring risks are managed proactively.
Grow The Pipeline
The future of internal audit depends on attracting and developing the right talent. Barriers such as a lack of understanding or awareness of the profession and inadequate networking opportunities are the primary factors that are keeping students from the profession.
However, there are several opportunities to address these challenges. Vision 2035 underscores the importance of redesigning the internal audit talent pipeline through partnerships with educators, students, and related academic organizations to increase awareness of the profession. By exposing students to the profession through networking opportunities and mentoring, these barriers will be less difficult to navigate.
At The IIA, we offer several opportunities to combat these challenges, such as free IIA student membership and forums dedicated to this audience, such as the Global Student Conference. These initiatives offer prospective talent and internal audit students the opportunity to network and collaborate with experienced internal audit professionals.
The findings from the Vision 2035 project provide the internal audit profession with an insightful perspective on where the profession stands today and what it should achieve by the year 2035 to realize our ideal future. By embracing technology, expanding our scope, connecting with strategy, and growing our talent pipeline, we can ensure that internal audit remains relevant, influential, and relied on to add significant value to organizations globally.
The Vision project underscores the importance of not just adapting to change, but leading it. As a profession, we must assume responsibility for guiding the future of internal audit to ensure it continues to thrive in its critical role, contributing to the success of the organizations we serve.
Anthony Pugliese (CIA, CPA, CGMA, CITP)
President and CEO of The IIA
📌Lue aiheesta lisää: Raportti: Internal Audit – Vision 2035
📌 Katso myös tallenne 31.7.2024 pidetystä Internal Audit: Vision 2035 -webinaarista, jossa Anthony Pugliese (IIA CEO and President) ja Terry Grafenstine (Chair of the Global Board of Directors) käyvät läpi projektin tuloksia.