Thinking Forward

Breaking Barriers

Internal Audit Beyond Accounting

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Internal Audit Management Insights

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Functional Reporting Lines

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Administrative Reporting Lines

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Audit Plan Allocation by Risk Area

19%

14%

13%

9%

9%

6%

6%

6%

5%

4%

4%

3%

1%

1%

Operational (not included elsewhere)

Financial reporting (including Sarbanes-Oxley testing)

Compliance/regulatory (not related to financial reporting)

IT (not covered in other choices)

Financial areas other than financial reporting

Cyber (prevention and/or recovery)

Fraud identification and investigation (not covered in other audits)

Support for external audit

Enterprise risk management programs and related processes

Cost/expense reduction or containment

Governance and culture

Management of third-party relationships

Sustainability or other nonfinancial reporting

Other

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Risk Assessment by Area

59%

40%

38%

34%

31%

18%

18%

15%

13%

12%

12%

3%

2%

30%

40%

45%

39%

52%

46%

44%

41%

30%

39%

43%

10%

16%

10%

18%

14%

24%

15%

34%

33%

41%

44%

45%

42%

80%

62%

1%

2%

3%

3%

2%

2%

5%

3%

13%

4%

3%

7%

20%

Cyber (prevention and/or recovery)

Compliance/regulatory (not related to financial reporting)

IT (not covered in other choices)

Management of third‐party relationships

Operational (not included elsewhere)

Fraud identification and investigation (not covered in other audits)

Enterprise risk management programs and related processes

Governance and culture

Financial reporting (including Sarbanes‐Oxley testing)

Cost/expense reduction or containment

Financial areas other than financial reporting

Support for external audit

Sustainability or other nonfinancial reporting

High or very high Medium Low or very low Not applicable

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Internal Audit Skills & Training

SkillSkill Is Extremely or Very Essential

Need More Training

Analytical/critical thinking 96% 49%Communication skills 95% 45%Understanding of professional ethics 79% 4%Persuasion and collaboration 79% 33%Understanding the audit process 76% 9%Business acumen 76% 34%Understanding of governance, risk, and control 62% 23%Understanding of the International Professional Practices Framework 51% 14%

Industry-specific knowledge 46% 36%Process improvement and innovation 48% 33%Risk management assurance 46% 18%Accounting and finance 45% 11%Basic IT knowledge 43% 24%Data mining and analytics 35% 67%Cybersecurity and privacy 33% 52%Fraud auditing 20% 23%

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Key Differences Between Internal and External Audit

Internal Audit External Audit

Purpose Analyze and improve controls and performance

Express an opinion on the financial condition

Scope Organizational operations Fiscal financial records

Skills Interdisciplinary Accounting, finance, tax

Timing Present/future, ongoing Past, point in time

Primary Audience Board, executive management Investors, public interests

StandardsThe IIA’s International Standards for the Professional Practice of Internal Auditing

Generally Accepted Auditing Principles, Generally Accepted Auditing Standards

Focus Enhance and protect organizational value

Fair representation of financial statements

Employment Relationship An organization’s employee An independent third party

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Breaking Down the Barriers

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Profile

• Undergraduate• Graduate• Both

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What are some of the majors or degree programs that go internal audit?

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What are the barriers in offering Internal Audit Programs to Non Accounting Majors

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Pre-requisites for Taking Internal Audit Class

• How many Accounting course pre-requisites to take the internal audit course

• Are there other pre-requisites

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Breakout

• Steps to break the barriers• What are some of the areas where the

internal audit course and program can be cross listed

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Sharing