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There is a gap in internal audit-specific guidance supporting the education and training of financial services auditors. The industry requires its practitioners to have specific knowledge that addresses functions in a unique atmosphere, such as requirements and expectations of regulators, complexity of products, and the role of internal auditors. The demand for internal auditors with financial services knowledge and experience is growing rapidly, propelled by regulatory pressures to appropriately staff internal audit programs with the right volume and caliber of resources. This has led many internal audit activities within the highly regulated financial services industry to increase their staff in accordance with the new global operating environment and in terms of quality and quantity. This guidance will enable internal auditors to: Understand the financial sector environment, including key objectives, business areas, and related risks as well as the impact of globally accepted principles that provide the foundation for laws and regulations within the industry. Identify industry-specific risks relevant for the jurisdiction in which a company operates and commonly used frameworks. Identify the roles and assurance activities of the second line of defense functions within financial services that provide coverage of sector-specific risks. Understand the relationship internal audit has with its external regulator/supervisor and how to effectively manage expectations of the regulator while maintaining a reporting relationship to the board. Understand how the second-line functions can integrate activities such as risk assessment, planning, leveraging engagement work and conclusions, and reporting results. The eBook Practice Guide: Foundations of Internal Auditing in Financial Services Firms $25.00  

Before you can determine where to go and how to get there, you must figure out where you are. The concept of data analytics has become a mandate for internal audit functions. The question isn’t 'if'; it isn’t even 'when.' The time is now; the question is how? If you have not yet started or have only dabbled in the world of data analytics, it is time to learn about it and recognize the potential value you can contribute to your organization by implementing even a basic foundation and building on it as you appreciate the full value and power of information. Is it a daunting proposition? It can be, and there is a learning curve, but even small audit functions can take advantage of the power that data analytics can provide. It can further your reach into and visibility within your organization, allowing you to stay relevant and contribute to your organization’s betterment by providing greater value. “Analytics Refresher,” published almost five years ago in Internal Auditor magazine, is still on target today. “Internal audit can be a catalyst for expanding the use of analytics through the company to provide greater, more holistic business insights,” states the article’s author, Neil White. Those who are not fully engaging in data analytics can enhance their organizational profile and usefulness by making it a priority to introduce data analytics into the audit plan. You can find part 2 here.

Data analytics has become a strategic imperative Embracing data analytics is by no means a new idea for internal auditors, but judging by the number of “how to get started” articles that continue to be published, adoption is still in its infancy — particularly when it comes to smaller audit functions that may be resource constrained. Today’s world is overwhelmed with readily available data, and chances are your various departments or business units already are collecting bits of valuable information. If aggregated and analyzed with the aim of enabling your organization to achieve its objectives, this data may present myriad opportunities from which to boost profits, reduce expenses or waste, and grow.  One barrier to embracing the power of data analytics may be obtaining buy-in from your organization’s leaders. This is where internal auditors have an opportunity to make the case. Not only is data analytics the way of the future, but organizations of all shapes and sizes across all industries cannot afford to ignore a tool with the capacity to yield an irresistible bounty. The key for internal auditors is to win the hearts and minds of decisionmakers who can pave the way for adoption of a solid data analytics strategy. As noted in “Data Analytics Mandate, Part 1: Where do we go from here?,” this paper will review strategies and tactics for those in the early stages of data analytics adoption or those who have yet to begin. This is for members only. To access it and other valuable resources, become a member today.

The growing popularity of blockchain networks, coupled with blockchain’s potential to fundamentally transform the way many business processes are handled, raises an important question for internal auditors: What steps, if any, should the profession be taking in response to this transformational technology? Blockchain’s initial prominence arose from its use as the underlying technology for powering digital currencies such as bitcoin. But the technology has numerous other applications in a variety of business processes and entities beyond cryptocurrencies. As these applications become more widespread and commonplace, internal audit’s role as the third line of defense in risk management will be directly affected. Certain attributes and features of blockchain technology open up the possibility of numerous new and promising applications in a broad range of industries. Yet, in many ways, enterprisewide blockchain applications are still emerging. Evidence suggests that while some internal audit departments are responding to blockchain adoption by their companies, the profession as a whole has not yet taken a leading role in this area.

The IIA’s Global Perspectives and Insights: 5G and the 4th Industrial Revolution looks at keys issues that are bound to arise once 5G is a reality. From implementation challenges, legal issues, and regulatory tests to disruptive technologies, data management, and cybersecurity concerns, the report seeks to prepare organizations for the potential impacts of 5G so they can proactively address the issues. This is for members only. To access it and other valuable resources, become a member today. You can find part 1 here.