IIA Atlanta Chapter CAE Appreciation Day Insights & Updates from The IIA 15 April 2016 Bill Michalisin EVP & COO, North America
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IIA Atlanta Chapter
CAE Appreciation
Day
Insights & Updates
from The IIA
15 April 2016
Bill Michalisin
EVP & COO, North America
• Trends & Insights
• 2016 Priorities &
Investments
• Questions
Overview
TRENDS & INSIGHTS
Practitioner
Insights
Stakeholder
Insights
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
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
Stakeholders: What we Heard
Foundational Elements, High
Ratings
More than 80% of stakeholders agree or strongly agree that Internal Auditors:
More
than
80%
• Assess areas or topics that are
significant.
• Keep up to date with changes in the
business.
• Sufficiently communicate audit plans.
7
Foundational Elements, High
Ratings
Top three criteria (supported by 70% of respondents) used to evaluate the performance of Internal Auditors:
Top
three
criteria
• Quality of audit work/reliable results.
• Usefulness of recommendations made.
• Timely communication of risks.
8
Beyond Basics: Assurance vs.
Advisory
Many respondents note that they see value in advisory services. What should this non-assurance work cover?
Top
3
areas
• Identifying known/emerging risk areas.
• Facilitating/monitoring risk
management.
• Identifying appropriate risk
management frameworks.
9
Offense vs. Defense
71%
74%
76%
78%
78%
85%
Assurance on compliance with legal & regulatoryrequirements
Alert operational management to emerging issues& changing regulatory & risk scenarios
Consult on business process improvements
Identify appropriate risk management frameworks,practices & processes
Facilitate & monitor effective risk managementpractices by operational management
Identify known & emerging risk areas
Source: CBOK Stakeholder Report: Relationships and
Risk, Insights from Stakeholders in North America
Risk Is A Broad Term
Stakeholders say they want Internal Audit to add value by being engaged in risk-related activities. Which ones?
58%
• More than half of our respondents want
Internal Audit to be more active in
assessing and evaluating strategic
risks.
• Only 1 in 4 disagree.
11
Moving Out of the Comfort Zone
CultureCyber risk
Data Interpersonal skills
55% 71%
52% 58%
Source: Pulse of Internal Audit report, 2016
TEXT
TEXT
TOP
ANSWERS
AUDIT
FOCUS
KEY
RISKS
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.
Focus on strategic risks as well as
operational, financial, and compliance risks during audit projects.
Periodically evaluating and communicating key risks to the Board and
Executive Management.
13
Internal Auditors Cannot Do
Everything
The survey asked stakeholders about the best way for Internal Audit to prioritize competing demands.
77%
said…
• The most popular option: CAE to build
strong relationships with management.
• Expect strong relationships with board
members also.
14Focus on Relationships
Interpersonal Skills are Critical
9%
19%
21%
23%
28%
37%
40%
42%
44%
65%
83%
97%
98%
Quality controls
Investigations
Fraud auditing
Finance
Cybersecurity
Data mining & analytics
Risk management…
Accounting
IT
Industry-specific
Business Acumen
Analytical/critical thinking
Communication skills
Source: Pulse of Internal Audit report, 2016
Invest in yourself and your
team
Key Takeaways
Demonstrate understanding
of strategic risks.
Focus on risk activities.
Explore adding more
advisory work.
Preserve the foundational
elements.
Build your soft skills.
16
IIA 2016 PRIORITIES
• 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
Serving our Members
INVESTING IN YOU
Member Empowerment
Omni-channel Learning
22
Exis
tin
g C
en
ters
Exch
an
ges
Fu
ture
Information Technology
Colleges & Universities
Health Services
Gaming & Hospitality
CANADIAN
Public SectorAUDITING CENTRE
Specialty Resources
Digital & Social Engagement
55%
45%
BY GENDER
Male Female
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
18 – 34 25 – 34 35 – 44 45 – 54 55 – 64 65+
14%
33%
24%
18%
9%
2%
BY AGE
1%
37%
41%
13%
4%1.40% 2.60%
13-17 18-24 25-34 35-44 45-54 55-64 65+
73%
27%
47%
71%
80%93%
27%
Come Celebrate the 75th
Anniversary in New York City
Registration is open
24
Questions?
www.theiia.org | www.globaliia.org
The Institute of Internal Auditors
Bill Michalisin
EVP & COO, North America
Thank You
© 2016 The Institute of Internal Auditors. All Rights Reserved.
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