Exploring the Value and Growth Potential in Internal Auditing
As a senior consultant specializing in internal audits, control diagnostics, and financial controls, I’ve spent over five years navigating the complexities of the auditing landscape, primarily with major firms like Grant Thornton and KPMG. Through this tenure, I’ve often pondered the true value internal auditing brings to organizations and the growth prospects for those of us in this field. Here’s a deep dive into this topic, with insights drawn from my professional experiences.
Adding Value Beyond Compliance
Internal auditors are often perceived as generalists rather than specialists, which can seemingly limit our contributions. When tasked with auditing well-established companies with robust processes and advanced ERP controls, the challenge often becomes: how do we add value beyond simple compliance checks?
While ensuring transparency and adherence to policies is crucial, it may feel like anyone could undertake these tasks, especially with AI now capable of designing Audit plans rapidly. This begs the question: is our expertise only truly appreciated by startups and smaller firms? Answering this requires recognizing that auditing is not just about identifying discrepancies but also about refining processes and instigating systemic improvements. It’s essential to view ourselves as partners in fostering sustainable organizational growth, no matter the size of the company.
Career Growth and Professional Development
When it comes to career growth, many internal auditors find themselves in advisory roles, suggesting improvements without the authority to implement changes. However, some companies, like Nestlé, have adopted innovative pathways by equipping in-house auditors with varied skills over several years. This grooming enables auditors to transition into business leadership roles where they apply their comprehensive exposure to the business.
For those seeking growth, it’s vital to look beyond the traditional confines of auditing roles. Building expertise in business management, strategic thinking, and leadership could open doors to influential positions where decisions are made.
Mapping the Road to Expertise
Auditors touch every corner of a business, resulting in a wealth of broad, albeit shallow, insights. Unlike professions with clear specializations, the path for internal auditors can feel disjointed. To remedy this, identify areas within your roles that spark genuine interest and cultivate a deeper understanding there. Whether it’s technology, risk management, or financial analysis, carving out a niche will distinguish your value proposition.
For the driven auditor seeking advancement, pursuing certifications or advanced studies in chosen areas of interest can create opportunities not only for specialization but also for innovation within the field.
Elevating the Auditor’s Role
The future of internal auditing
One response
Internal auditing indeed plays a crucial role in creating value for organizations, though the nature and extent of that value may vary depending on the context. With your extensive experience in the field, it’s understandable to have these insightful questions about the value of your work and your future career path. Let’s explore your concerns and shed light on how you can navigate your career as an internal auditor.
Internal auditing is more than just a compliance exercise; it’s about delivering assurance, insights, and advice that contribute to an organization’s objectives. While it’s true that internal auditors are not field-specific experts, this is not a limitation but rather a strength. Your role allows you to maintain an impartial and holistic view of the organization’s control environment. In companies with robust systems, the value may seem limited, yet, refining existing processes, suggesting improvements in efficiency, and preemptively identifying potential risks offer significant value. AI and other technological tools are not competitors but enablers to perform deeper analyses. By leveraging AI for routine tasks, you can focus on strategic risk evaluation and advising on governance. Often, the real value is in the subtlety of understanding how different issues interlink and managing stakeholder relationships effectively—tasks that still need the human touch.
To grow beyond advisory roles, you need to diversify your skills and broaden your understanding of business operations. Opportunities for growth can be extensive as demonstrated by companies like Nestle. They recognize that auditors, owing to their broad exposure, make excellent candidates for leadership roles. Similarly, large consultancies often provide opportunities for auditors to transition into risk management, compliance, or operations roles. Expanding into these areas often requires upskilling in business management or pursuing certifications such as Certified Internal Auditor (CIA) or Chartered Global Management Accountant (CGMA) which provide insights into wider business disciplines and enhance your strategic advisory capabilities. Seek opportunities to engage with different business units and industries, cultivate a network within your organization, and remain adaptable to switching focus areas when needed.
As an internal auditor, you are already exposed to a wide range of operations and departments. To stand out, you might consider: