There have been many significant events over the past 10 years that have dramatically changed the risk landscape that internal auditors must deal with. From the introduction of tough new regulations in the wake of the financial crisis, to the surge in cyberattacks, to the emergence of risks related to artificial intelligence, data ethics and privacy, the decade has reshaped the work of internal audit.
These events will have a lasting and far-reaching impact on how the entire industry serves the public interest. These changes will test our ability to provide independent confirmation and support sound corporate governance. These challenges also provide a tremendous opportunity for internal audit to become a true partner of the Board of Directors and Executive Management.
As this decade draws to a close, stakeholder perceptions of the industry have changed dramatically over the past 10 years that have shocked us. I sincerely believe that the stereotype of stakeholders viewing internal auditors as "Mr. Bookkeepers" who is solely concerned with the financial health of the organization is disappearing.
The two new products IIA launched this year reflect the latest developments in the industry. One is the IIA's "OnRisk 2020" report, released in October, which aptly ranks internal audit as one of the three pillars of risk management, alongside the Board of Directors and senior management. Second, the IIA's new U.S. Corporate Governance Index (ACGI) – and the associated corporate governance guidelines – has also enhanced the role of internal audit as key to sound corporate governance.
Each era offers opportunities for growth and development. The next decade is expected to bring great achievements to internal audit. Today, we are stepping on the doorstep of a new decade. The IIA is recognized as the broadest advocate and facilitator of internal audit and a provider of international standards, guiding principles and qualifications. As president and CEO of IIA, I am often seen as a cheerleader for the industry. I'd love to play that role. Although I have been in the industry for more than 40 years, I am not proud to believe that my role as a cheerleader is not just to market our industry.
Guiding the internal audit industry has been IIA's mission for nearly 80 years. It includes the ideological guidance, practical guidance, and tools for modern internal auditors to complete the audit work at the highest level, so that internal audit can adapt to more complex, dynamic and fast-paced changes.
Over the past 80 years, IIA has grown from a group of dedicated and forward-thinking volunteers to a professional organization that employs more than 200 dedicated employees at its headquarters while relying on the insight and hard work of thousands of volunteers around the world. I believe that the next decade will be wonderful for the IIA as we use new technologies to improve the way we deliver products and services.
Supporting the professional needs of practitioners around the world is a daunting task, but the IIA is well positioned to take on that task. Over the next decade, we will work tirelessly to find new ways to help our members grow. For the IIA to do this, innovation is essential. The same is true for internal auditors, who have to change and adapt to job requirements. Practitioners who invest in training and certification, attend professional conferences, and look for networking opportunities will put themselves in a position to succeed.
To adapt to dynamic changes, any profession must be built on a solid foundation. For internal auditors, this foundation is already reflected in the International Standards for the Professional Practice of Internal Auditing and the Core Principles of Professional Practice of Internal Auditing. These documents not only provide basic direction, they also demonstrate that our fundamental beliefs as internal auditors are sound and resonate in different cultures, geographies and at different times.
For the future of internal auditing, I am most comforted by the enhanced understanding of the standards, core principles and other components of the International Framework for the Professional Practice of Internal Auditing. They have been tested and proven and are still as important today as they were when they were first proposed.
In the moment of resignation and renewal, it is natural to reflect and reminisce. A happy coincidence is that the Chambers Career Blog is about to enter its 12th year and fully covers the decade that is coming to an end. For that, I thank my readers for giving me this opportunity to look back.
After publishing more than 400 blog posts, it's hard to imagine what topics remain to be discussed and what insights remain to be shared. However, anyone who has worked in our industry knows that the industry is constantly changing and the challenges and rewards it brings are diverse.
Corporate governance, culture, cybersecurity, artificial intelligence, data ethics and privacy, regulatory reform – the list of new and changing risk areas is still growing. However, as practitioners, we should be excited and energetic in the face of the changes brought to us by the 2020s. IIA will accompany you on every journey.
As always, I look forward to your insights.
Author: Richard Chambers (from the official website of the IIA on December 30, 2019), Original Translator: Chen Guohua (Ganzhou City Center Branch of Chinese Minmin Bank)