4 Biggest Risks that Internal Auditors may face in 2018
It all goes without further questioning that internal auditors face greater risks than their fellow counterparts who are external auditors. Their question of independence is usually out to test in an organization as other external and internal forces may barricade them from vehemently performing their duties. Moreover, internal auditors are seen not sufficient enough to provide auditing services as companies have to seek the services of External auditors after all to close the auditing process.
Plus with the advancement with the use of technology in the auditing department, internal auditors have to deal with the effects of cyber crimes which may result in the distortion of a large company or organizational data. Then, what are the biggest risks for internal auditors this year?
Risks for Internal Auditors in this year
Insufficient auditing resources that will be privy to addressing different risks matters
At times most of the auditing departments may shy away from the auditing of risky ventures that may not guarantee success in a business. I believe that if the possible response from the undertaking of such Risky proceedings proves to be beneficial to the future success of the business, then the organization has to find a way to handle the issue.
The possible performance of audits that don’t matter to the board and top executives
This has been a prevalent matter that has jeopardized many internal auditing processes. Most internal auditors due to the prior provision of audit independence from their organization may misuse the independent and perform audits that have not been approved by the top executive. As long as the performance of the audit didn’t get a green light from the relevant stakeholders and other parties that are interested in the internal auditing process, the whole process will remain a staff function which may cause greater risk to internal auditors.
The breakdown in the channel of communication accompanied by some bureaucratic processes
The normal official way of communication that auditors use is through the writing of an audit report on the entire internal auditing process. The report provided provides solutions that have been discovered by internal auditors during their internal auditing process. This report, however, may take a long period of time to be read by the senior auditing department notwithstanding may take a great deal of time to respond to the internal auditor report. This may pose to be the biggest risks for internal auditors in 2018.
The loosing of Key members of the auditing departments
The retrenchment of workers may result in a loss of possible great company auditors that understood the company auditing terrain well and appropriately. The hiring of new workers may come across with difficult challenges in that the newly hired auditors may take time to adapt to the company auditing system notwithstanding the amount of time which the new auditors may require to learn how the organization operating system and different departments operate. This may pose to be a big challenge for internal auditors in 2018.
In conclusion, the challenges which were faced by the internal auditors in the previous years have been more of the same but we anticipate different organization will work out and get viable results.