Seize the moment: IIA's new chairman of the board, Betty McPhilimy, CIA, spotlights the increased responsibilities and opportunities challenging today's internal auditors

Internal Auditor, August, 2004 by Betty McPhilimy

WITHIN THE LAST TWO or three years, corporate scandals, new regulations, an increase in mergers and acquisitions, global and technological changes, and market share competition have all contributed to the meteoric rise of the internal auditor's stature in the corporate ambit. In the United States, the New York Stock Exchange now mandates an internal audit activity for its listed companies. Time magazine featured an internal auditor as one of its "Persons of the Year" in 2003, and the number of college graduates in accounting and auditing continues to rise. But the trend is not limited to the United States: In Thailand, all internal auditors are now required to be certified; in Qatar, The IIA's certified internal auditor (CIA) designation was recently awarded for the first time to a female internal auditor; and in South Africa, universities have added internal auditing to their academic curricula. * If that's not enough evidence that this is a new day for internal auditing, IIA membership has increased by more than 20,000 since 2000, specialty group memberships have grown by more than 30 percent, and the association has received a record number of requests to assist companies implementing new internal audit activities. Within the ranks, internal auditors are realizing the importance of exhibiting competency as evidenced by the more than 13,000 auditors who have earned the CIA designation since 2000. * The increased recognition, credibility, and enhanced understanding of the role internal auditors serve have encouraged management to more readily seek out our insights and services.

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Many decision makers are coming to truly understand exactly how integral internal auditing is to good corporate governance. And although we might have self-gratifying thoughts such as, "We've been saying this for eons; they should have listened long ago," the spotlight comes with increased responsibility and opportunity. Now is the time for all internal auditors to stretch the fabric of the profession so the opportunities presented do not pass us by.

The late IIA President Bill Bishop always asked us to join him in exclaiming, "I'm proud to be an internal auditor," but we need to ask ourselves whether or not that's true. If you cannot answer with a resounding "yes," then your reflection shows every day at work. Today's internal auditor cannot be passive. Today's internal auditor must be engaged and involved in the profession, in his or her organization, and in ensuring the future of each.

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THE BIG PICTURE

The opportunities for both the profession and The IIA are at an all-time high. Not only is The IIA at the beginning of its strategic planning phase for the next three years, but we also are at a crossroads for setting the tone of the profession for the long term. If we individually and collectively keep an eye on the important issues of governance, enterprise risk, ethics, sustainable development or corporate accountability, and advocacy, we will pave the way to the future of the profession. As The IIA's new chairman of the board, I am excited to forward each of these issues as co-spokesperson for the profession with The IIA's new president, Dave Richards. Although we've both been with The Institute for a number of years, our new roles are both challenging and exhilarating.

To continue to serve as the global voice of, and advocate for, the profession, The IIA must reach further than ever to ensure best business practices and ethics all around the globe. Examples of this include our recent African nations' summit, the Global Council meeting that took place in Sydney, Australia, just after the 2004 International Conference, and the global membership development and global capacity projects currently underway at IIA headquarters. Rather than simply increasing the number of IIA members worldwide, The Institute is clearly focused on adding value to membership, and, on a larger scale, helping developing countries improve governance, transparency, risk management, control, and business practices. More is expected.

NO LONGER FOR TRANSIENTS

In the not-too-distant past, internal auditing was considered a transient profession, and management used the department to give up-and-comers a way to learn the business. Now, more practitioners are viewing internal auditing as a career choice, rather than a temporary position. The demands of the job are diverse, and the occasions to specialize are vast enough to satisfy even the most discerning and energetic professional.

The IIA Professional Practices Framework (PPF) laid the foundation for the new role of an internal auditor. As part of that convergence of ideas, leaders of our profession, who now seem clairvoyant, toiled endlessly to develop the new definition of internal auditing: "Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes."