Internal auditors should work closely with the audit committee to establish the audit department's responsibilities, and the board and management should support those duties. However, internal audit processes can sometimes be ignored by the top management, who may chose to focus time and resources on areas they deem to be more pressing to bottom lines. It is the responsibility of the internal auditor to put proper control measures. (Metricstream, n.d)
Independence is the freedom from conditions that threaten the ability of the internal audit activity to carry out internal audit responsibilities in an unbiased manner. To achieve the degree of independence necessary to effectively carry out the responsibilities of the internal audit activity, the chief audit executive has direct and unrestricted access to senior management and the board. This can be achieved through a dual-reporting relationship. Threats to independence must be managed at the individual auditor, engagement, functional, and organizational levels. (Institute of internal auditors, 2009)
Outsourcing internal auditors is an effective cost-saving strategy when used properly. It is more affordable and leverages the business with competencies and skill sets from different functions that existing IA may not have. For example, few in-house IA shops have the capabilities to employ advanced data analytics to derive strategic insight and do more sophisticated risk analysis and monitoring. Having advanced analytics capability requires access to the relevant technology and tools. It also requires technology-savvy professionals who can code and create the analytics and business professionals who can convert the analytics and turn them into usable insights. ...
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...gly realize they need “really deep industry capability; they need people to understand the business and not just finances.” (Jackson, 2013)
Auditors will need to be technology savvy as a great deal of audit work in the future will be supported and hosted on gadgets such as tablets, smartphones, and many more. They may not necessarily have a specialization in IT but they should be able to conduct audit procedures using technological tools to improve the efficiency and accuracy of their audit work (Jackson, 2013).
“By 2020, internal audit is going to be driven much more by data — in the risk assessment phase, in planning and scoping an internal audit, and in executing it,” Pett predicts. Specifically, he foresees visual analytics rising dramatically on the back end, plus more technology-enabled communications and more tablet-based reporting (Jackson, 2013).