Top 3 Critical Skills for the IA Profession

JODI LEWIS: This is the second episode of our Risk Advisory podcast series supporting the IIA's Internal Audit Awareness Month.

JODI LEWIS: I'm Jodi Lewis, a manager in our Risk Advisory practice at Cherry Bekaert, and I'm joined today by Andy Jameson, a director within our group.

JODI LEWIS: In the first podcast of the series, we covered the IIA's Vision 2035 report. If you haven't read that report yet, I encourage you to download it from the IIA's website.

JODI LEWIS: One area of focus was the importance of internal auditors expanding their skills and experience. Today we're diving deeper into the top three critical skills for the internal audit profession.

JODI LEWIS: Andy, we're seeing a shift from technical skills toward soft skills. What are the benefits of an increased focus on soft skills?

ANDY JAMESON: There are many benefits. First and foremost, we are in the business of building relationships and becoming trusted advisers, and communicating effectively is key.

ANDY JAMESON: As trusted advisers, we must have tough conversations and present topics that may involve disagreement with the client. We have to convey those messages effectively.

ANDY JAMESON: For example, control deficiencies often involve interpretation. There are gray areas as to whether a control deficiency elevates to a significant deficiency or a material weakness. Those are not always easy conversations, but it's our job to explain what that means for the control environment and any changes they may need to make.

ANDY JAMESON: You also have to understand your audience. The way you communicate with a control owner, a senior associate, or a manager is different from the way you communicate with a controller, a CAO, a CEO, a CFO, or a board member. It's important to tailor the communication to the audience.

JODI LEWIS: How we communicate that information is vital. It helps clients see a way through those situations and builds stronger relationships as trusted advisers.

JODI LEWIS: That leads us to our first of the top three critical skills for internal audit professionals: communication and relationship management. According to a global survey of internal audit hiring managers conducted by the IIA, 78% of hiring managers noted business communication skills as absolutely essential when addressing knowledge areas that influence hiring decisions.

ANDY JAMESON: That doesn't surprise me. Internal audit is a client-centric field. Being able to communicate effectively is essential.

ANDY JAMESON: Audit findings include compliance issues, internal control weaknesses, and potential risks. You must articulate those in a way the client understands and appreciates and deliver bad news objectively without undermining trust. That skill separates great auditors from the rest.

ANDY JAMESON: It's not always bad news. You must adapt when conversations change and be prepared to explain yourself in whatever direction the conversation goes. Part of being a trusted adviser and adding value is communicating thoughts and conclusions effectively.

ANDY JAMESON: Within the Vision 2035 report and other IIA communications, everyone is talking about the changing role from an insurance mindset to an advisory mindset. Technological advancements will help; information may be easier to obtain and more efficient to access. We still have to communicate that information effectively.

JODI LEWIS: Do you have insights on ways internal auditors can build those communication skills?

ANDY JAMESON: Adapt to your audience by considering their background, level in the organization, and knowledge. Don't use overly complex language with someone who lacks experience, and avoid unnecessary detail with someone at the controller or CAO level. Know your message and get it across effectively.

ANDY JAMESON: Be an active listener. Especially with difficult messages, people will have their points of view. Let them know you understand and respect what they're saying and be prepared with an appropriate response that supports our role as trusted advisers.

ANDY JAMESON: Focus on the facts by having the key facts at your disposal, being precise, and controlling your tone. Avoid coming across as someone who knows everything or who is giving a definitive answer.

ANDY JAMESON: There are trainings available. The IIA offers a course called Communication Skills for Auditors, and there are courses on critical thinking as a vital auditing competency. A combination of on-the-job training and obtaining feedback from career advisors will give you the tools to succeed.

JODI LEWIS: Adapting to your audience is essential because everyone has different experiences and perspectives. That brings us to the second crucial skill: critical and strategic thinking.

JODI LEWIS: Internal auditors must be problem solvers, not just problem identifiers. It's not enough to spot an issue; auditors must find its root cause and devise solutions aligned with the organization's goals.

ANDY JAMESON: Strategic thinking is especially important for colleagues earlier in their careers, such as associates and seniors. It means looking ahead, predicting emerging risks, and advising clients proactively rather than reactively.

ANDY JAMESON: Many associates perform transaction testing, which is important, but they should also consider how a finding could affect things down the road. Anticipating future deficiencies or issues and thinking proactively is the strategic approach we want to develop.

JODI LEWIS: How can new internal auditors enhance critical and strategic thinking skills?

ANDY JAMESON: Be curious. Ask probing questions of your supervisor, leadership, and others with experience. Be open to new perspectives and don't take disagreement or criticism negatively.

ANDY JAMESON: Learn through experience; on-the-job training is critical. Seek feedback and coaching from supervisors and career advisors. There are trainings as well, including IIA courses on critical thinking. Combine experience, feedback, and training to build these skills.

JODI LEWIS: Critical thinking skills are built and honed over time through continuous learning. That leads us to our final critical skill: adaptability.

JODI LEWIS: In today's business environment, nothing stays the same for long. In the Vision 2035 survey, when participants were asked which three critical skill sets are most important for internal auditors in the next 10 years, 61% indicated adaptability and learning agility as the number one critical skill.

JODI LEWIS: Regulatory changes, technological advancements, and shifting priorities require internal auditors who can evolve as quickly as the changing environment.

ANDY JAMESON: Emerging technologies, especially artificial intelligence, are already reshaping audit practices by automating processes and providing new insights. AI has the potential to supplement our work and offer efficiencies.

ANDY JAMESON: Successful auditors will stay ahead of those trends, be curious about how to use the tools, and have a desire to learn. Understand what AI can and can't do, and know its risks and strengths.

ANDY JAMESON: AI output is only as good as the information it draws from, so mental fact-checking and proofreading are required.

ANDY JAMESON: Firms are still learning how to integrate AI into tools and understanding industrywide risks. In addition to experiential learning and curiosity, supplement your knowledge with training to understand the risks, concerns, and benefits.

ANDY JAMESON: Besides AI, digital transformation, advances in data analytics, mergers, and restructuring are ongoing changes auditors must keep up with. Adaptability ensures auditors remain relevant as businesses evolve.

JODI LEWIS: Rapidly evolving technologies bring new guidelines, compliance standards, and regulations that may change business needs. That maintains the need for adaptability and lifelong learning throughout careers.

JODI LEWIS: Technical expertise is vital, but soft skills are key to long-term success. Communication fosters trust, strategic thinking elevates audit insights, and adaptability keeps professionals ahead of the curve.

JODI LEWIS: We will have upcoming podcasts on data analytics in internal audit and on auditing AI.