Greater diversity of audit questions requires flexibility
In the Netherlands we have about 900 internal audit functions. That number is still growing. The growth is mainly in the smaller audit functions. Not only is the number of audit positions growing, the diversity of audit questions has also increased in recent years. And with that, the challenges also increase.
Small and fine, but with challenges
80% of internal audit functions in the Netherlands consist of less than 5 FTEs. A relatively small audit function has many advantages. You are agile, there are short lines and you are forced to choose the most relevant topics. Of course, it also presents challenges. For example, it is more difficult to respond to peak loads and to permanently have the desired and changing content knowledge. Because the reality is: risks change and come up faster; audit issues vary more widely and are becoming more thematic.
"New audit techniques, including data analysis, are always needed to remain efficient and relevant."
There are almost no more "standard" audits; everything becomes customized. Also, new audit techniques (including data analysis) are always needed to remain efficient and relevant. Furthermore, audit innovation is necessary to achieve more results with fewer hours. Last but not least, it is necessary to be compliant with the IIA Standards despite all the challenges (more on that in my next blog).
Flexibility in capacity and knowledge can be organized
The increasingly challenging reality of the internal audit function can be met by deliberately organizing capacity, flexibility and knowledge in relation to need. This is often done by means of a collaborative structure.
Some audit functions choose to use business auditors, which can fill part of the need. But because of the necessary distance from3rd line to1st and2nd line, we see a need among our clients for a sustainable collaborative structure in the form of co-sourcing.
As a permanent co-sourced partner, we know the organization, are attuned to the need to quickly deliver professionals with the right knowledge and competencies, and can perform the audit activities at the times that make the most sense. Capacity, flexibility and/or specialized knowledge are scaled up and down as needed. Targeted deployment of audit specialists in this way also results in cost savings, audit lead times are shortened and labour shortages are overcome. One of the most important factors to consider in a co-sourcing relationship is proper knowledge transfer and assurance. Of course, we take great care in this regard, as well as maintaining the relationship throughout the long-term cooperation.
Wondering how we can support your organization in meeting the increasing diversity of audit demands? Then contact me at carlo@arcpeople.nl or 06 400 50 555. I would be happy to tell you more about it.
