Increasing competency requirements

Matching Internal Audit talent to business needs

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As Internal Audit's mandate expands and its scope increases, the function needs to be prepared to fulfill additional skills and competency requirements.

At present, many Internal Audit functions may not be ready.

Although more than half of respondents indicate that they will need to be more heavily involved in identifying, assessing and monitoring emerging risks over the next two years, there appears to be a disconnect in the skills and competencies they feel their internal auditors should have.

When we asked respondents which skills they believe are most important for their Internal Audit staff to possess, their top five skills were compliance-focused:

  • Financial audit and accounting
  • Internal controls
  • Operational audit
  • Compliance and regulatory
  • Risk management

Internal Audit Mandate

Data analytics ranked 6th, fraud prevention and detection 9th, business strategy 10th and deep industry experience 12th.

And yet, when we asked respondents to rank which skills or knowledge their internal auditors were lacking, respondents ranked these among their top five:

  • Data analytics
  • Business strategy
  • Deep industry experience
  • Risk management
  • Fraud prevention and detection

 

These skills are crucial if Internal Audit is shifting its mandate to a strategic advisor.

Internal Audit functions need to shift competency and training efforts to ensure they have the right skills to meet audit plan requirements and management expectations.

Important skills compared to lacking skills

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