As a young internal auditor, I concentrated extensively on learning the technical skills of the profession. I learned early in my career about the importance of developing an audit plan at the beginning of every engagement, documenting the results of the audit, and crafting a well-written audit report. I also learned how important it was to understand the operations/business of the areas I was auditing. All of these skills served me well throughout my career. However, I can honestly say that the technical skills were easy to learn compared with the “soft skills” that I needed to hone in order to be successful.

Every now and then, regulatory bodies around the world issue guidance documents that make a profound statement about internal auditing. Last week, the U.S. Federal Reserve issued some new guidance that clearly falls into that category. 

This year marks the 35th anniversary of The IIA’s International Standards for the Professional Practice of Internal Auditing (Standards). Over the years, the Standards has become recognized as a critical means by which internal auditing’s stakeholders gain assurance on the quality of internal audit’s work. Conforming with the Standards lets our stakeholders know that the internal audit function is a reliable resource because it’s independent; operates with a high degree of professionalism; is staffed with ethical, objective professionals; and adds true value to the organization. As such, The IIA’s Code of Ethics and Certified Internal Auditor designation make conformance with the Standards a requirement for IIA members, IIA certification holders, and candidates. 

Over the years, one of the practices I have followed in writing my blog is to open the year by sharing five New Year’s resolutions that every internal auditor should make. As I noted last year, these are not the typical resolutions about losing weight or exercising more — although some of us could certainly benefit from such resolutions as well. 

At about this time each year, I like to look back at the news events and stories that are shaping our profession. Occasionally, we have a year in which few news stories seem to be relevant to internal auditors, but this year — for better or worse — a number of headlines seem destined to affect where internal auditors are headed in the coming year. Each of these stories holds important lessons for internal auditors, so a review of a few of the most important events seems in order. 

If you are looking for a job in the internal audit field, I have good news: Despite everything you may have heard about economic uncertainties and a looming “fiscal cliff,” the internal audit job market is heating up. According to our Audit Executive Center’s Pulse of the Profession survey of 545 chief audit executives and internal audit directors, about a fourth of internal audit groups expect staff levels to increase in 2013, and 71 percent expect staffing to remain steady. These are the strongest results we've seen in years, and I believe it's a reflection of the value that audit committees and management are placing in having a strong, well-resourced internal audit function.

I learned important lessons early in my career about internal audit independence and the impairments that can come from reporting relationships. I began my career as a civilian internal auditor for the U.S. Army. At the time, we had more than 1,900 internal review (audit) auditors in more than 300 Army installations and commands around the world. Virtually every one of them worked directly for the comptroller — essentially the equivalent of a corporate chief financial officer (CFO).

Are you one of the best and brightest internal auditors in the profession? Are you dedicated, determined, and detail-oriented? Are you knowledgeable and self-reliant, and so you almost always have the correct recommendations for complex internal audit findings? Great! But be warned: Your professional assets can become liabilities.

Anyone who knows me or follows this blog and my social media presence knows that I am not “thin-skinned” when it comes to constructive criticism of the internal audit profession. I am confident in the remarkable progress that our profession has made and the stature that it now enjoys. I even discuss opportunities for our profession to improve when speaking at internal audit conferences and other events because I believe bringing issues to light can make our profession stronger. But when I read what I believe is misleading research, or when I see inaccurate headlines/articles directed at the profession, I will always make a vigorous effort to set the record straight. Such is the case with a recent research report from a group of Brigham Young University professors and an ensuing CFO.com article.

For many years, I taught accounting courses during the evenings at a local university. I would often tell my students, “The only stupid question is the one that is never asked — unless the question is, 'Would you postpone the next exam?'”