Internal Auditors In High Demand and Short Supply
Demand for internal audit professionals is rising sharply. A recent study conducted by PricewaterhouseCoopers finds that the number of internal auditors is expected to increase over the next five years, and that technology will have a significant impact on the evolution of internal audit responsibilities. The study also finds that internal audit leaders must move to a more “risk-centric” model. Executive search firm, A.E. Feldman reports that with a heightened focus on risk management candidates seeking internal audit jobs must move beyond traditional methodologies and utilize more sophisticated tools and applications.
Internal audit professionals are positioned to help executive management achieve a company’s goals. From finance and operations, to compliance they evaluate whether various aspects of the business are running effectively. Today, internal audit professionals must also embrace ongoing risk monitoring and frequent enterprise-wide risk assessments.
Evolving Role
A recent survey of the Chief Audit Executives of U.S. Fortune 250 companies conducted by PricewaterhouseCoopers (PwC) shows that changes in risk management, globalization and technological advances are redefining the role of internal audit professionals. According to PwC, the mindset of internal auditors must shift if they expect to remain key players in managing risk and providing assurance to senior management and the board of directors.
Nearly two-thirds of the PwC survey respondents expect the number of internal audit professionals to increase over the next five years, with the largest increase occurring in the technology area. In fact, every single respondent predicts that their use of technology will increase over the next five years, and a whopping 95% expect technology to have a significant impact on internal audit responsibilities.
New Skills Needed
Internal auditors need to aggressively seek to master new skills and use advanced tools and techniques to optimize the use of technology, in order to ensure that they provide real value to their companies, according to the PwC survey. The study however, also suggests that doing so will require different skill sets for internal auditors as well as a move beyond traditional internal audit methodologies.
Five years from now, PwC says the most important skill sets will be data mining, risk assessment, information technology, risk management and fraud detection in addition to traditional accounting and auditing skills.
