Incoming IIA Chairman's Message Has Important Content for Auditors and Boards
I strongly recommend viewing Denny Beran's video. Denny is a good man, who has been involved in internal auditing and our profession for decades — yet has managed to remain energetic and vibrant in his love for his chosen line of work. It is remarkable that someone who could be accused of being an 'old timer' is actually very much a forward thinker. This is very evident in his message.
Here are my notes from listening to the video today:
- This is a changing world, to which we need to adapt at a moment's notice
- Globalization and advances in technology have immense impact on our business and our practices
- Business is moving faster than ever and we need to support that if we are to remain relevant and value-add
- We cannot remain the same, be complacent, if we are to continue to be relevant
- We need to focus every day on whether we are delivering the value we should, that we are capable of
- Board and management expectations are growing, and that is good news for those internal audit departments who are ready and willing to step up to the challenge
- The video includes a diagram (my amateur version is shown below) that Denny talks about. He says we must provide assurance over governance, risk management, and internal controls processes. (As an aside, I like the order of these three: governance, then risk management, thenm controls.) We add value through our insight and this is enabled through our independence and objectivity.
- Relevance starts with Courage: the courage to speak out and share with the board and management what needs to be improved. This ability to speak out makes our assurance valued, an invaluable asset to the board and management
- Our integrity must be without question
- We should ensure we have earned the right to be considered the risk and control experts, people the board and management turn to for advice
- It is essential that we build strong relationships at every level, including with the board and management
- We must be Strategically focused
- It is essential that we be proactive, engaged where change is occurring to provide assurance that the management of risk and controls will be satisfactory
Do you like the video and the message? What strikes you most as important and relevant to our challenges today?
Posted on Jul 25, 2011 by Norman Marks
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