Why the Internal Audit Profession Needs To "Level-Up"

Mar 20

During the last couple of decades, internal auditors at universities and colleges were expected to submit an audit plan to the audit committee. After the committee’s approval, this plan would guide audit activities throughout the coming year. Today that does not happen anymore. The audit plan can change quarter-to-quarter, month-t-month, or from day today. Changing external and internal environments of universities and colleges have led to a constant need to elevate risk and its impact. They require the internal auditor role to a more dynamic and flexible to add value to the universities and colleges’ strategies and initiatives. Self-development, relationship building, and using an understanding of data and cyber security are essential skills that auditors should hone to provide the expertise needed in the universities and colleges to evaluate the efficiency and effectiveness of internal control. A combination of technical and soft skills, education, and training ensures an auditor’s success. To address the evolving challenges and opportunities, the internal audit profession needs to embrace innovative practices and continuous learning.

Build Personal Value through Certifications

Professional development at universities and colleges in the field of internal audit is critical to an auditor’s reputation and credibility. Earning a certification drives career advancement at universities and colleges, salary increases, and specificity in a subject matter such as Risk Management, Information Technology, or, fraud.

Relationship Building

Developing trust and gaining respect at all management levels at universities and colleges requires the best auditors to have strong relationship-building skills. Creating an effective working relationship at universities and colleges with the students and other staff requires performing their due diligence to understand the business, developing a partnering approach, and maintaining open communication lines to maximize the audit’s success.

Data-Driven Decisions

Artificial Intelligence (AI) provides a wealth of information for the auditor at universities and colleges to make informed decisions. Data analytics improve the quality of the audit by enabling the confirmation for accuracy and interpreting the results in the universities and colleges’ financial statements. The use of AI eliminates the manual process allowing auditors to quickly identify and understand anomalies and trends in the areas of Risk Management or Fraud. This has become a core skill for all auditors at universities and colleges today. Strengthening the internal audit profession involves investing in advanced technologies and methodologies that enhance audit accuracy and efficiency.

Good Governance

In order to provide assurance and insight to universities and colleges’ governance processes, the internal auditor is excluded from all governance discussions. Audit work is directly related to the independence and importance given to the internal audit function within the universities and colleges.

The head of internal audit needs to be promoted to a position aligned with the Accounting Officer or higher to minimize poor internal audit opinions and improve the audit quality. Internal auditors should identify the forces influencing governance. They should continually refine their knowledge of these influences and report to and recommend actions that will assist the universities and colleges in combating traditional and emerging risks.

Cyber Security

Today’s transition from desktop to public and private cloud computing infrastructure offers excellent payoffs for an active cyber security force operating all global businesses. The threats to sensitive data around the world continue to grow. As an internal auditor at universities and colleges, part of the Risk Management process is to conduct a cyber risk assessment evaluating the effectiveness of the universities and colleges Internal Controls which should be integrated with universities and colleges’ day-to-day operations. The need for an additional line of defense against cyber-attacks requires an independent internal audit review of the client’s security measures and their performance.

Effective Communication

All written analyses and reports must be clear, straightforward, and easy to understand; to ensure that business leaders appreciate an auditor’s input and heed their advice. An auditor at universities and colleges with excellent communication will include visuals such as graphs, tables, and diagrams in their presentations. This is especially important for successfully bringing complex and detailed information together for board and audit committee consideration at universities and colleges.

Final Thoughts

The importance of sharpening non-technical skills for future internal auditors cannot be understated. As the internal audit profession advances, it is crucial for professionals to develop new skills and adapt to emerging trends to remain relevant and effective in their roles. We will need to be fast, flexible, empathetic, with a multicultural mindset, and able to work well with others. Internal audit staff at universities and colleges should possess broad and in-depth skills, such as public speaking, developing relationships with board committees at universities and colleges, implementing new technologies, and managing conflict.

To level up and to be totally effective, an internal auditor at universities and colleges needs to keep pace with evolving technologies. He collectively applies all the competencies mentioned here today. Auditors who meet the challenge of using emotional intelligence strong interpersonal skills will attest to the levelling-up and value-added to their craft.