IIA Atlanta Chapter CAE Appreciation Day

Transcription

1 IIA Atlanta Chapter CAE Appreciation Day Insights & Updates from The IIA 15 April 2016 Bill Michalisin EVP & COO, North America

2 Overview Trends & Insights 2016 Priorities & Investments Questions

3 TRENDS & INSIGHTS

4 Practitioner Insights Stakeholder Insights

5 Stakeholders: What we Heard Internal Audit does many things well that could be considered foundational elements of assurance work. There are opportunities for Internal Audit to add value to their organization by spending more time focusing on risk identification and management, in addition to assurance work. 5

6 Stakeholders: What we Heard Internal Audit should focus more on strategic risks, but exactly what stakeholders mean by that is less than clear or consistent. Increased demands on Internal Audit will require CAEs to prioritize competing demands. Managing these conflicts requires strong relationship and communication skills. 6

7 Foundational Elements, High Ratings More than 80% of stakeholders agree or strongly agree that Internal Auditors: Assess areas or topics that are significant. Keep up to date with changes in the business. Sufficiently communicate audit plans. More than 80% 7

8 Foundational Elements, High Ratings Top three criteria (supported by 70% of respondents) used to evaluate the performance of Internal Auditors: Quality of audit work/reliable results. Usefulness of recommendations made. Timely communication of risks. Top three criteria 8

9 Beyond Basics: Assurance vs. Advisory Many respondents note that they see value in advisory services. What should this non-assurance work cover? Identifying known/emerging risk areas. Facilitating/monitoring risk management. Identifying appropriate risk management frameworks. Top 3 areas 9

10 Offense vs. Defense Identify known & emerging risk areas Facilitate & monitor effective risk management practices by operational management Identify appropriate risk management frameworks, practices & processes Consult on business process improvements Alert operational management to emerging issues & changing regulatory & risk scenarios Assurance on compliance with legal & regulatory requirements 85% 78% 78% 76% 74% 71% Source: CBOK Stakeholder Report: Relationships and Risk, Insights from Stakeholders in North America

11 Risk Is A Broad Term Stakeholders say they want Internal Audit to add value by being engaged in risk-related activities. Which ones? More than half of our respondents want Internal Audit to be more active in assessing and evaluating strategic risks. Only 1 in 4 disagree. 58% 11

12 Moving Out of the Comfort Zone Cyber risk Culture 52% 58% Interpersonal skills Data 55% 71% Source: Pulse of Internal Audit report, 2016

13 Role In Responding To Strategic Risks Stakeholders were asked to choose the best avenue for Internal Audit to improve its role in responding to risks. T E X T TOP ANSWERS T E X T AUDIT FOCUS KEY RISKS Focus on strategic risks as well as operational, financial, and compliance risks during audit projects. 13 Periodically evaluating and communicating key risks to the Board and Executive Management.

14 Internal Auditors Cannot Do Everything The survey asked stakeholders about the best way for Internal Audit to prioritize competing demands. The most popular option: CAE to build strong relationships with management. Expect strong relationships with board members also. 77% said 14 Focus on Relationships

15 Interpersonal Skills are Critical Communication skills 98% Analytical/critical thinking 97% Business Acumen 83% Industry-specific 65% IT 44% Accounting 42% Risk management 40% Data mining & analytics Cybersecurity Finance Fraud auditing 28% 23% 21% 37% Invest in yourself and your team Investigations 19% Quality controls 9% Source: Pulse of Internal Audit report, 2016

16 Key Takeaways Preserve the foundational elements. Explore adding more advisory work. Build your soft skills. Focus on risk activities. Demonstrate understanding of strategic risks. 16

17 IIA 2016 PRIORITIES

18 Serving our Members Enhance the Member Experience Member Portal Young Professionals Initiative Self-directed Learning Deliver Targeted Member Solutions Audit Group Concierge Services Industry & Specialty Centers Job-specific Tools & Resources Strengthen Chapter Support Chapter Technology Suite Chapter and Academic Programming

19 INVESTING IN YOU

20 Member Empowerment

21 Omni-channel Learning

22 Future Existing Centers Exchanges Specialty Resources Information Technology CANADIAN Public Sector AUDITING CENTRE Colleges & Universities Health Services Gaming & Hospitality 22

23 35.00% Digital & Social Engagement 33% 71% BY AGE 27% BY GENDER Male Female 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 14% 24% 18% 9% 2% 45% 55% 0.00% % 80% 4% 1.40% 2.60% 13% 1% 37% 93% 27% 41% 73%

24 Come Celebrate the 75 th Anniversary in New York City Registration is open 24

25 Questions? The Institute of Internal Auditors Bill Michalisin EVP & COO, North America

26 2016 The Institute of Internal Auditors. All Rights Reserved. Thank You