Internal Auditing Services | Major Challenges faced by Internal Auditing

Major Challenges of Internal Auditing in Future

Internal Auditing Services:

A process that provides consultation and assures objective fulfillment in order to add value for improving the organization’s operations are called Internal Auditing Services. Internal Audit is an independent activity carried out in a company or entity by the appointed professional called as internal auditors. Every organization is entitled to conduct auditing at regular intervals in order to get key insights of the operations of the business and whether it is on the right path of achieving its own goals and objectives.

Internal Auditing Services

Problems faced by Internal Auditing Services in Future:

  • Expertise in Technology: Since in future more and more reliance will be on the leveraging technology. One of the key issues in providing internal auditing services will be to be up to date with the technical inventions in order to provide more competent auditing results. The factor of diligence and judgement of the internal auditors will be more difficult due to lack of human intervention in case technology takes over.
  • Use of Internal Auditing Techniques for fraud: With use of more competent technology for auditing, the fraudulent activities will be at bay. But it will again pose challenges for the auditors providing Internal Auditing Services to be more competent for acknowledging and exposing the frauds and forgery that is happening inside the organization.
  • Auditing Governance: It is one of the major objectives of the Internal Auditing Services to provide the organization an insight and contribute in its governance process by improving and evaluating the process to achieve the following-
  • Establishing and communicating the goals and values of the organization.
  • Monitoring the accomplishment and fulfillment of the goals.
  • Ensuring the accountability.
  • Preserving the values for future purposes and references.
  • Management of Time: Time management is another aspect that needs to be kept in mind while providing internal auditing services. And with changing business world and time that is running too fast it will become more valuable to have skills for managing the time and applying the auditing process accordingly, to give the best results.
  • Application of Observational Skills: One key area where the auditors will have to upgrade their skills for future purposes are the skills to observe the organizations strategies, goals and every single aspect. Observational skills are very important for applicability of the internal auditing services in efficient and effective ways.
  • Consultancy Skills or Process Analysis capabilities: The capability to analyze all the processes of the organization should be a key point and the auditor must have the right knowledge and qualities to provide with proper consultations and recommendations to the company wherever needed.
  • Assessments, internal control measures and opinions: The auditors have the key responsibility to assess all the internal control measures that have been formulated to reduce the risks faced by the company and then make opinions about the same in the audit report.
  • Approaches on Risk Assessment: The Internal Auditors are required to provide with a very coordinated and rigorous approach to help in assessing all the key risks that affect the process of achieving the financial and strategic goals of the organization. It also helps in responding to these upside and downside risks. With changing times and modernization of the business modules, the core competencies of today’s Internal Auditor need to be upgraded as well. They need to be more skilled and qualified for this work.
  • Communicational skills: The communicational skill is one of the main competencies of any auditor. But in future everything will be communicated to the organization through the technological methods. Even the audit reports will come effective through these methods and that too effectively and timely, unlike when given by the auditor. Therefore, this skill has to be evolved while giving internal auditing services to walk into the future with confidence.
  • Competencies to take charge and be accounted: The internal auditors are required to be more competent with the auditing processes and all the changes that will take place in the auditing world. They will be required to take charge of the whole process and also be accountable for conducting it.

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    Author: Anil Agrawal
    EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or anil@ezybizindia.in.