Page 14 - ENGLISH MARCH final 2018

Conversations with Colleagues Conversations with Colleagues

By: Farah Araj
How has the internal auditing profession How much of the changes to our profes- (such as accounts payable) and more
sion can be attributed to changing stake-
changed over the past 5 years?
attention paid to areas representing
Richard Chambers I think there have been some quite holder expectations? strategic organizational risks. As
positive trends. Regulators, boards, Given some of the recent misdeeds internal auditors increasingly rely on
technology to improve audit efficiency
The President and CEO of The Institute of Internal Auditors and other stakeholders are increasingly by companies around the world, it is and effectiveness, and we embrace a
reasonable to expect that stakeholders
seeing the value a strong internal audit
more diverse talent and skill mix into
shares his thoughts on the future of internal auditing function can bring. And, possibly as a will look to internal audit to provide our ranks, I believe we will be perceived
strong assessments of operations.
result of this enhanced appreciation,
less as “the police” and more as trusted
resources devoted to internal auditing However, I do not think this is solely advisors supplying valuable assurance
n addition to have shown a steady climb. There is a stakeholder-driven development. and advisory services.
his IIA role, every reason to feel good about the Internal auditors, as a profession,
IRichard serves trajectory of the profession, but, of have been proactive in encouraging Do you believe your view of the future of
internal audit is relevant to the Middle
on the Committee course, to maintain that favorable status, attention to the issue, both directly and East region?
of Sponsoring we have to continue delivering value, indirectly — directly, by advocating Absolutely. No part of the world is
Organizations of the anticipating rather than merely reacting for the benefits of better systems and an island unto itself, and the same
Treadway Commission to stakeholder expectations. controls (and internal audit’s role in pressures affecting organizations outside
assuring them, of course) and indirectly,
(COSO) Board of What are the new trends influencing by delivering performance that proves the Middle East are being felt in the
Directors and the Internal audit? E.g. artificial intelligence our point. Middle East as well, as your companies
International Integrated and robotics? become increasingly engaged in global
Reporting Council Like any profession, internal audit is business. This global engagement
(IIRC). subject to the changing demands and “More than ever, means that what happens to internal
opportunities brought by technology. audit around the world will also affect
Finally, Richard has We need to expand our expertise in Middle Eastern internal audit functions in the Middle
authored two award- fields such as cybersecurity, artificial East.
winning books: intelligence (AI), data analysis businesses need Given where the profession is heading,
Trusted Advisors: algorithms, and data privacy — all of what should an internal audit depart-
Key Attributes of which are now in our purview due to trusted advisors ment’s 2020 strategy include?
Outstanding Internal technology. Based on my previous comments, it is
Auditors, which was But technology is just one facet of a who embrace probably not a surprise that I would
released in early 2017; larger topic: business disruption. Our recommend leveraging technology
and Lessons Learned on research indicates that the coming years disruption as an aggressively. It is not a “badge of
will be characterized by significant
honor” to use old technology. Be
the Audit Trail, which disruption in business models, markets, opportunity rather future-focused; for example, learn
is currently available in and strategies. This is likely to place how advanced analytics embedded in
five languages. increasing pressure on boards and than a setback” cognitive computing (often considered
executive management to address more AI) can be used to improve internal
Internal Auditor complex and rapidly escalating issues audit. Doing so may necessitate my
Middle East connected in the workplace. Internal audit must – Richard Chambers second recommendation: broadening
with Richard Chambers position itself to be part of the solution. the skill sets in internal audit by looking
during his most recent We believe internal auditors should help So what will internal audit look like in beyond just accounting and finance
trip to the United Arab their organizations deal with disruption the next 5 years? personnel. Remember that technology
expertise and soft skills are also needed
Emirates. by keeping a laser focus on the things in internal audit. And, finally, do not
they historically do well: assurance, risk I think there will some major shifts shy away from the difficult areas to
in focus. For example, I believe there
management, controls, and governance. will less emphasis on internal controls audit, especially technology (e.g.,
They should also engage with subject and more on how well management blockchain), culture, and strategic
matter experts and enhance their own is managing risks. This is likely to initiatives. Auditing accounts payable is
skills to keep a finger on the pulse of be accompanied by a reduced focus important, but limiting internal audit to
emerging technologies and pursue the on auditing traditional financial only that sort of work is a sure path to
necessary technology-relevant training. reporting and transaction areas irrelevance.

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