July 2017

July 31, 2017

Internal Auditing and the Fourth Industrial Revolution

I was recently quoted in a Forbes magazine article on whether artificial intelligence (AI) could one day replace the internal audit profession. My message was that the growing ability of sophisticated technology to monitor large and complex systems won’t replace internal auditors. Instead, it will enable them to become more efficient and effective in helping organizations solve problems and meet goals.

While I remain convinced of this, what wasn’t addressed in the article is how AI along with other digital and technological breakthroughs will fundamentally change how business is done and in turn how that will change the demands placed on internal audit.…

July 24, 2017

Internal Audit: The Future Is Now

The origin of the expression, “the future is now,” is murky at best, but it is often incorrectly credited to Korean American artist Nam June Paik. Paik, whose work with television and video in the early 1960s gained him the moniker, “the father of video art,” was quoted in Artnews magazine in 1995 urging, “People talk about the future being tomorrow, but the future is now.”

Paik was ahead of his time, and his approach to his craft is best described in his quote. He had the vision to articulate how technology and media would change perceptions and mold how we view our world.…

July 17, 2017

Managing an Internal Audit Career: How Do You Know When It’s Time to Go?

This summer, I have been taking the opportunity to share blogs from my archives that generated a lot of interest at the time they were published. This week, I reexamine the age-old question of how does an internal auditor know when it’s time for a career change.  

One of the most rewarding aspects of my job as president and CEO of The IIA is the opportunity to meet young professionals just starting their careers in internal audit. These interactions remind me of the reasons I joined the profession and they never fail to re-invigorate my own passion for what we do.…

July 10, 2017

For Internal Auditors, Real Beauty Lies in the Truth

Researchers at the University of Duisburg-Essen in Germany recently released findings from a study that looked at whether internal auditors are swayed by the attractiveness of their audit subjects. More specifically, the study looked at internal auditors’ susceptibility to “the beauty bias” in fraud-risk judgements.

The study found that experience and motivation “immunize” internal auditors to attractiveness stereotyping and the attractiveness halo effect. The theory of attractiveness stereotyping in psychology stems from studies that have found that Western people are more willing to listen to and believe people who are seen as aesthetically attractive. The halo effect is a type of confirmation bias wherein positive feelings in one area cause ambiguous or neutral traits to be viewed positively.…

July 3, 2017

For Internal Audit, the Sun Should Never Set on Independence Day

Residents of the United States celebrate the nation’s Independence Day on July 4th. For most, the holiday provides an opportunity to enjoy a day away from work, cook out with friends and family, and possibly set off fireworks, as is the American tradition.

To differing degrees, citizens of every country on the planet revel in recognition of the date when their homelands achieved sovereignty and self-determination. To be sure, there are 30 nations that have independence days in July, including Belarus, Canada, South Sudan, and Vanuatu. But I wonder, how many residents of these diverse nations actually stop to ponder their independence and what it means?…