Internal Audit Event Insights

A New Chapter for Internal Audit: IA Vision 35 and the Road Ahead

Last week, we were delighted to hold our second session for Chief Internal Auditors, kindly hosted by Royal London and Arlene McGichen (Director at the Chartered Institute of Internal Auditors and Group Chief Audit Officer at Royal London). The discussion quickly gained momentum, focusing on IA Vision 35, an ambitious roadmap set to redefine the future of Internal Audit. The question wasn’t whether we’re ready for this vision, but rather why it isn’t already here. The conversation underscored a shared concern: without evolution, Internal Audit risks becoming obsolete. The key issue was the need to balance assurance with a strategic advisory role while maintaining independence.

Assurance vs. Advisory: Striking the Balance

Traditionally, Internal Audit has been seen as the gatekeeper of assurance, focused on objective oversight. However, there’s a growing push for auditors to take on a more advisory, consultative role and acting as strategic partners without compromising independence. This shift is complex, with international perspectives differing for example U.S. audit teams often view advisory roles as a potential conflict with assurance duties, whereas teams in other regions are increasingly expected to offer insights and recommendations. The challenge lies in navigating these expectations while avoiding conflicts of interest.

Evolving Skill Sets: More Than Technical Expertise

The debate highlighted a shift in the skills required for modern auditors. Today, the emphasis is on soft skills such as communication, empathy, and strategic thinking over purely technical expertise. Auditors are expected to act as strategists, advocates, and change agents, contributing to business discussions. This evolution in skills reflects a broader transformation in the profession, with hiring now prioritising individuals who can influence stakeholders and add value beyond compliance.

From Hindsight to Foresight: A Broader Scope for Internal Audit

The role of Internal Audit is expanding beyond its traditional focus on hindsight (analysing past data) to include deeper insights and forward-looking foresight. This requires embracing tools like horizon scanning and process mining to anticipate emerging risks. The group discussed the potential of Artificial Intelligence (AI) in this context, noting its role in enhancing efficiency and providing deeper insights. However, opinions varied and some were excited about its potential, while others expressed caution over governance concerns and the risk of over-reliance on technology.

Living the Vision: Bringing IA Vision 35 to Life

The event concluded with a shared sense of urgency. IA Vision 35 isn’t a distant goal; it’s a call to action for today. To stay relevant, Internal Audit must evolve, blending assurance with strategic advisory capabilities and focusing on creating tangible value. This transformation isn’t about abandoning core principles; it’s about adapting them to meet the needs of a rapidly changing business landscape. Whether through enhanced soft skills, strategic advisory roles, or the adoption of new technologies, the future of Internal Audit is already being shaped. The consensus was clear: this evolution is not optional – it’s essential.

We would like to thank Royal London for hosting this session and look forward to continuing the conversation at our next event.

For more information about our events or to express interest in participating in future discussions around internal audit, please contact us at events@fwbltd.com.