Transforming the Role of the Internal Auditor in the Business Environment
By Sergio Villarreal* Partner and Leader of Internal Audit at Deloitte Over time, being an internal auditor has gained a reputation for being a monotonous job. As time passes, little is done to change that perception. Traditionally, this role is characterized by a relatively slow pace of change. Although, like any area of the company, it seeks to be relevant and add value, organizations often do not fully understand its scope and contribution.
In this scenario, the global community of internal auditors, brought together by The Institute of Internal Auditors, has decided to take a bold stance: to establish standards that elevate the profession to unprecedented levels. These guidelines are innovative and aim to ensure that these professionals are at the forefront of innovation dynamics within the companies they work for. The main challenges these standards present can be summarized in five key aspects: 1. The purpose of internal auditing is redefined to include not only the creation and protection of value but also maintaining that value and enhancing the organization’s capacity to serve the public interest. 2. The governance supporting the internal auditor's work must be clearly defined through the essential conditions outlined in the standards. 3. Similar to other areas of the business, internal audit must develop a strategy that begins with a five-year vision, outlining the initiatives needed to achieve it.
4. What does it mean for an internal auditor to be digital? It involves integrating information technologies into their management and performance, which also helps the company identify and mitigate risks. 5. Finally, the talent, encompassing both technical and soft skills, that the internal auditor must possess to tackle the challenges ahead. The integration of these five elements forms a Roadmap, providing internal auditing with a guide to becoming more relevant in each organization and contributing to its added value.
As the role of the internal auditor evolves and adapts to new realities, it can offer companies not just a control mechanism but a key competitive advantage in a world where transparency and accountability are essential. It is crucial for organizations to understand this transformation and leverage the potential of their internal auditors to promote sustained growth.
