Internal audit competencies and the gaps that exist

The expectations on internal auditors are rising. They are constantly being asked to enhance their value to their organizations. So, along with delivering high-impact results, they are expected to also evolve their internal audit competencies. This puts a renewed focus on the professional development of internal auditors. An establishment of core competencies can help internal auditors realize their passions and personal goals and stay competitive and relevant throughout their career journeys.

In fact, in September 2020, The Institute of Internal Auditors’ (IIA) released a new, comprehensive framework for the professional development of internal auditors. This competency framework helps auditors acquire the knowledge and skills necessary to navigate the challenges and opportunities before them. The framework comprises 22 core knowledge areas across four professional pillars: professionalism, performance, environment, and leadership & communication.

Source: IIA's Internal Audit Competency Framework

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In October 2020, the Internal Audit Foundation, in collaboration with Deloitte, conducted a global survey, ‘Assessing Internal Audit Competency’, to complement the launch of the framework. As part of the survey, responses were received from 1,181 internal auditors across 90 countries and career levels. The survey studied the current state of internal audit competencies in the field and identified the gaps. Internal auditors were asked to assess their level of competency across 28 competencies on a scale of 0 to 5, with 0 being no awareness of the topic.

Conclusion

It is not news that skill gaps and resource constraints exist within internal audit functions, but the survey findings imply that a fresh approach is needed to deal with them. Even as the profession has generally become stronger in its core competencies, some critical knowledge areas—particularly those pertaining to digital technologies and emerging risks—are lagging considering their relevance.

Internal audit needs to be ahead of the curve in implementing technology tools to improve the efficiency and effectiveness of audit services. Such tools are increasingly necessary to provide timely advice to stakeholders and help management identify emerging risks and responses. To address the remaining competency gaps, internal audit functions may need to shift their thinking about resource allocation and talent development to place greater emphasis on innovative and emerging knowledge areas. Download the full report to study the findings in detail.