Karen Brady, former Chair of the Institute of Internal Auditors (IIA) North American Board and member of IIA global board, speaking during a webinar hosted by the IIA Qatar Chapter recently.
Doha: In a world where business model disruption is ubiquitous, internal auditors must stay relevant and need to be recognised as trusted advisor and not just a one-dimensional assurance provider, said Karen Brady, former Chair of the Institute of Internal Auditors (IIA) North American Board and member of IIA global board.
She was addressing the IIA Qatar Chapter webinar recently on the topic of “The Relevance Factor”. Brady currently works with Baptist Health, the largest healthcare organisation in South Florida, which includes 11 hospitals, 4,000 physicians, and over 25,000 employees. She also serves as the Audit Committee chair of the Board of Directors of Riverside House, a charitable organisation and has authored and contributed to several thought leadership publications.
Speaking during the event, Brady advised the internal auditors to stay relevant and reiterated the IIA Regulation and Licensure survey of stakeholders which promulgated that “Internal audit should not be legislated or mandated”. Instead, it means internal audit should find its relevance by providing value to organisations, she added.
The survey also found that audit is losing prestige, with most internal auditors slow to help employers prepare for major corporate disruptions like the pandemic, significant regulatory changes and cyber attacks. Quoting Tim Leech’s ‘Is Internal Audit the Next BlackBerry?’, Brady said: “It really is time to reinvent the profession”. During her presentation, she said about 70 percent of organisations have a digital transformation strategy or are working on one.
“Internal auditors should be innovative. What this meant is to champion a combined assurance program, improve the use of technology (AI, robots, data analytics), and include strategic initiatives like ESG, diversity and inclusion, and culture. Upskilling is needed more than ever before. ‘Not in our wheelhouse’ is not an excuse anymore."
"Auditors who are technology savvy, have business acumen (industry, market), and critical thinkers are in demand. Today’s technology auditors should be familiar with AI, robotics, intelligent automation, IoT, Blockchain, 3D printing, and drones,” added Brady.
She went on to talk about how to prove relevance with four aspects: Tie Workplan to a strategic plan; Establish goals and report achievement; State explicitly how audit helped the organisation succeed; and Never settle for the status quo.
Sundaresan Rajeswar, IIA Qatar Board Member who coordinated the event, said: “Brady’s presentation focused on how crucial it is for every internal auditor to pursue relevance. Internal audit is undoubtedly the most challenging job to do well. However, we are running a risk of marginalisation when the value we deliver is unclear, when it is not defined, measured, or even communicated well. There is an expectation gap perceived. The question is are we playing to win or not to lose. The talk highlighted imminent problems and immutable solutions for auditors to internalise immediately to survive if not to do well”.
Christian Adonis, former IIA Qatar President, added: “Internal auditors can demonstrate relevance through continuous improvement and innovation. Therefore, we need to transition to the trusted advisor role. The outcome will be a greater appreciation of the value of internal audit in the organization”.
