View from the global IIA
Professional status spread the word
“We cannot campaign to be recognised worldwide if we don’t position ourselves correctly.”
Richard Chambers, president and CEO of the global Institute of Internal Auditors
When I tell new acquaintances about internal auditing, certain questions often arise. One of these is: “What makes you say that internal auditing is a profession?” I believe it is, indeed, a profession and that all of us can help to increase recognition of the benefits that professional internal auditors offer. In my first view in a series from the global internal auditing perspective, I will explain why internal auditing is a profession and why being in a global profession matters.
Simply put, professions share common elements – rules of behaviour, a shared body of knowledge, formal professional standards and quality control mechanisms. Internal auditing has each of these. We have a code of ethics setting out the behaviour expected of all internal auditors and a well-researched common body of knowledge and we test internal auditors’ understanding of this via globally recognised qualifications.
Our professional standards help to define our profession. These include mandatory quality assurance mechanisms to ensure that internal auditing is practised professionally.
The fact that we have global standards is a significant strength and means that internal auditors in Botswana work to the same standards as those in Singapore or London.
We need to increase recognition of this fact.
Professionals also work in the public interest. This is obvious to us, but it isn’t widely enough known. When I was interviewed on CNBC in January I talked about what internal auditing is and why investors should care about it. We provide assurance to management and boards that internal controls work properly. Many shareholders don’t realise that much of their
information about controls over risk management and corporate governance comes from internal auditors. Publicising this is part of our global advocacy strategy, but communication starts at a national level, where organisations such as the UK IIA offer
information to key stakeholder groups. I am extremely impressed by the work of the UK IIA over the past year, particularly its recent testimony in the House of Lords.
This was the most impressive work of its kind that I’ve seen anywhere.
Our strategic plan states that internal auditing should be
“universally recognised” as a global
profession and we still have much to do. We cannot campaign to be recognised worldwide if we don’t position ourselves correctly. We now work with organisations including the OECD, IFAC and INTOSAI, the global group of heads of government audit. Globally, we target heads of corporate and government
audit and we are seeking additional targets and developing
ways to work with them.
There are lots of
opportunities. The financial crisis spawned new regulations aimed
at strengthening corporate governance and risk
management. Internal auditors play an
important role in fostering compliance with these. We should be at the table when regulations are drafted and should help to implement them.
But there are also challenges. For example, hundreds of thousands of internal auditors work for governments. I spent 26 years in the public sector and I know that government auditors provide confidence in governance systems and in the way public resources are used. But many countries are reducing public-sector budgets and too often internal audit is seen as an area to cut, not as a means to save resources and ensure efficiency.
We need to explain why this is short sighted.
I hope that all internal auditors will help to publicise the benefits we bring to businesses, investors and the public. In the future, when internal auditors are interviewed by national media, I don’t want us to be asked why we are professionals – not because it’s no longer important, but because it’s self-evident.
For Further inFormation richard Chambers writes a blog at www.theiia.org/blogs/chambers and tweets at @ www.twitter.com/iiaCeo.
