It is really time for internal auditors to reinvent the profession and be relevant - Karen Brady

'It is really time for internal auditors to reinvent the profession and be relevant,' says an Karen Brady

"In a world where business model disruption is ubiquitous, Internal Audit must stay relevant. Internal Audit needs to be recognized as a trusted advisor and not just a one-dimensional assurance provider," said Karen Brady addressing the IIA Qatar Chapter webinar titled 'The Relevance Factor' recently.

Karen Brady is Past Chair of the IIA North American Board, Member IIA Global Board, works with Baptist Health, the largest healthcare organization in South Florida, including 11 hospitals, 4000 physicians, and more than 25,000 employees. Brady also serves as the Audit Committee chair of the Board of Directors of Riverside House, a charitable organization. She has authored and contributed to several thought leadership publications. She is a frequent speaker at IIA events.

Emphasizing internal auditors to stay relevant, Karen quoted the IIA Regulation and Licensure survey of stakeholders that promulgated, 'Internal audit should not be legislated/mandated.' Instead, it means Internal Audit should find its relevance by providing value to organizations.

The survey also found that Audit Losing Prestige, with most internal auditors slow to help employers prepare for major corporate "disruptions" like significant regulatory changes and cyber attacks. Tim Leech was quoted, 'Is Internal Audit the Next BlackBerry?' It really is Time to Reinvent the Profession.

Karen started her presentation with examples of business model disruption in the healthcare and other companies that pioneered innovation, such as Amazon PrimeAir, Redmart, DaVinci surgical system, Instacart, etc. 70% of organizations have a digital transformation strategy or are working on one.

Relevant Risk assessments are one of the primary requirements for internal auditors not to lose sight. It means Timely or Flexible risk matrices, Periodic reevaluation, and Develop real-time risk dashboards. Another critical aspect of staying relevant is reimagined audit plan. Insightful, Impactful, Meaningful, Aligned with strategy are criteria to meet. 

'Internal Auditors should be innovative,' stated Brady. What is meant is to Champion a combined assurance program, Improve the use of technology (AI, robots, data analytics), and Include strategic initiatives like ESG, Diversity and Inclusion, and Culture.

Upskilling is needed more than ever before. 'Not in our wheelhouse' is not an excuse anymore. Auditors who are Technology savvy, have business acumen (industry, market), and Critical thinkers are in demand. Today's technology auditors should be familiar with, if not proficient, are AI, Robotics, Intelligent Automation, IoT, Blockchain, 3D Printing, and Drones.

Ms. Brady talked about how to prove relevance with four aspects; Tie Workplan to a strategic plan, Establish goals and report achievement, state explicitly how Audit helped the organization succeed, and Never settle for the status quo. What is often forgotten is the measurement of value contribution by internal auditors through client satisfaction surveys, fulfilling specific expectations, and addressing strategic initiatives.

"Brady's presentation focussed on how crucial it is for every internal auditor to pursue relevance. Internal Audit is undoubtedly the most challenging job to do well. However, we are running a risk of marginalization when the value we deliver is unclear, when it is not defined, measured, or even communicated well. There is an expectation gap perceived. The question is are we playing to win or not to lose. The talk highlighted imminent problems and immutable solutions for auditors to internalize immediately to survive if not to do well," said Sundaresan Rajeswar, Board Member who coordinated the event for the chapter

"Internal Auditors can demonstrate relevance through continuous improvement and innovation. Therefore, we need to transition to the trusted advisor role. The outcome will be a greater appreciation of the value of Internal Audit in the organization," Christian Adonis, Past President, mentioned as he thanked the speaker for a thought-provoking talk.  

Girish Jain, Murtaza, Ayisha Rafiq, and Muralikrishnan hosted the event, and Rajeswar handled Q&A Session. Over 100 members attended the event.