Do Your Internal Auditors Have the Right Skills?

Do Your Internal Auditors Have the Right Skills?

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The advancement of the internal audit function is getting pace, the requirement of skills and characteristics that decide professional success have been transformed. Technical skills are still mandatory, but they are no longer dependent on their own. Most significant factor of Internal Auditor contains a wide range of non-technical factors in collaboration with deep technical expertise.

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As per recent survey conducted by the Institute of Internal Auditors (IIA), only one by fourth of corporate internal-audit will concentrate on operational risks.

Taken as a whole increase in scope for internal-audit teams is made easy by increasing number of professional to be hired. As per IIA survey, almost 22% chief audit executives mentioned that their internal-audit staffing level will show development this year. The president of IIA and chief executive officer predicted that numerous firms will face stable or slightly higher staffing levels in internal audit in upcoming years.

Professional Skill Standard/criteria: –

 Furthermore, individuals who use to keep close watch on the working of internal auditors are expecting additional skills to round out the department. Another basic factor that is concluded in the IIA survey is that various internal-audit professionals exposed that firms are not anymore looking for the traditional skills of internal auditors. Collectively they have set standard criteria in order to check the skills and competency of an auditor.

An auditor should meet the below percentage of skills as a part of his working: –

  • 50%-Data mining and analytics
  • 49%-General Information technology related knowledge
  • 73%-Analytical and critical thinking
  • 61%-Communication skills
  • 46%-Business wisdom

Demand of Auditors: –

Auditors with Financial and accounting backgrounds are still in demand. However, the latest demands for the skills are currently in higher demand and it will definitely expand the team’s working approach. Keeping in view that, internal-auditing teams should not be bound themselves just for that purpose. Instead, they should plan priorities depending on each company’s assessments of its risks.

Chambers observed that firms are looking beyond the finance department in search of potential internal auditors. Advisors believe that the ability to extract and examine data has been high for the last couple of years.

The IIA reported that internal-audit profession is no more considered to works solely as finance and must act as advisers and experts who can deal on broader matters, particular strategic risks to the business.

However, progress became bit slower or even stalled due to financial crisis, experts acknowledges, from that point forward various internal-audit teams were downsized. Despite those still companies have show positive attitude toward diversifying their internal-audit coverage.

Role of Financial Crisis: –

We can say that financial crisis was good for the role in a way. Regulators were consistently calling upon managers and boards to make better their supervision of risk management, using speeches and regulations, managers and boards are looking toward internal auditors to evaluate whether the firm is assessing its risks and justifying them within risk-tolerance levels.

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