MILLORA, ANGELO JAMES W.

BSAC – AAI

AUDITG2 (MWF 3-4) 10/23/20

Discuss. In your own words, the challenges to internal audit. What opportunities do these challenges provide?

1. Developing a Workforce Strategy

 Not enough qualified individuals, with unique skillsets required for being an established Internal Auditor are
present. With the rising salary cap for these individuals, companies are also at risk of hiring people who do not
fit the standard and or do not add any essential value to a company. The problem with that is it presents itself as
a double edge sword, as in every employment, there is somewhat a sacrifice being made. As, with every function
in an audit team bearing a significant part in a process, with one failing affecting the whole function. With
Internal Audit profession dealing with conflict a lot, not everyone might cut out for it. An opportunity that arises
which may cost money, but it may bring value in the long run, that is to give fruitful learning/training to the staff,
old and new as Internal Auditors should know how to adapt to the changes and aim for what’s best for the
company.
2. Becoming a Trusted Advisor
 Trust is tied down to morality and credibility, and in the workplace, getting the job done would essentially boost
that for you. The problem nowadays is the means of attaining that goal. The more open and savvy people get,
the harder it is to identify errors, thus once found out, the ones tasked on checking on those aforementioned
errors, are put into judgment, other than that by the management, but also by the general public. Though this
problem has been here for a while now, it shouldn’t become common practice or a culture in the workplace. An
opportunity presents itself which shows those who are passionate and are eligible for the job. An opportunity
presents itself on the side of the Internal Auditor, as he may opt to increase his trustworthiness by offering more
insight and foresight than hindsight, giving assurance of problems and having confidence in dealing with them.
3. Delivering Added Value
 There are other increased stakeholder expectations that internal audit functions and personnel must meet.
These are achievable by providing insight that will help the company in the long. Problem is, what is the
assurance of that happening? For sure there are different levels of assurance in terms of risks and solutions.
Adding value means becoming an integral function for the longevity of the company. As such, one should not
only focus on what they can do now, but what they are capable of outside of they comfort zone. An opportunity
arises for Internal Auditors as they may put their knowledge and skills from training to the test. One should be
better equipped mentally and they may add value to the company by maintaining regulatory compliance, third-
party relationships. Cybersecurity, looking into emerging markets, and having an in depth understanding of IT
governance.
4. Leveraging Technology
 Internal Audit is as traditional as it gets. As many people, including myself, cannot grasp or imagine the full job of
an internal auditor. With the advancement of technology, an opportunity of harnessing skills related to IT opens
itself. Technology itself was made to make life more convenient, with many Internal Auditors, old and new,
already hopping on courses that may help with their understanding of IT and how to use it. The profession of
Auditing should not be restricted by policies and should be open to change, as any should be. An Internal
Auditor should posses these qualities in order to become successful: the drive to change, the passion in actual
and in practice, the idea of staying relevant.