SLIDE 1 RELEVANCE EXCELLENCE RESULTS
Filling the Void: Addressing Today’s Skills Gaps in Internal Audit
Paul McDonald, senior executive director, Robert Half Larry Harrington, CIA, CRMA, QIAL, chief audit executive , Raytheon Company, global chairman, The IIA
SLIDE 2
Today’s Speakers
Paul McDonald Senior Executive Director Robert Half Larry Harrington, CIA, QIAL, CRMA Chief Audit Executive Raytheon Company Global Chairman The IIA
SLIDE 3
RELEVANCE EXCELLENCE RESULTS
Filling the Void: Addressing Today’s Skills Gaps in Internal Audit
SLIDE 4
Today’s Discussion
Skills in short supply in internal audit Identifying skills gaps in your team Professional development strategies Outside resources Incorporating employees into the process
SLIDE 5
RELEVANCE EXCELLENCE RESULTS
Skills shortages
SLIDE 6 Poll Question 1
How would you characterize the skills and expertise of your team?
- Perfect – we have all the skills and expertise we need
- Good – we have a solid skill set but room to improve
- Fair – we’re lacking key skills
- Poor – we have a long way to go
SLIDE 7 Hiring is hard – more so in internal audit
[VALU E]% [VALU E].0% 2 4 6 8 Unemployment rates Projected employment growth: 2014-2024 [VALU E]% [VALU E]% 5 10 15
Source: U.S. Bureau of Labor Statistics
National average Accountants and auditors
SLIDE 8 Technical Skills Gaps
International Professional Practices Framework (IPFF) Governance, risk and control Technological proficiency
Sources: Common Body of Knowledge (CBOK), The Institute of Internal Auditors, 2015 Internal Audit Capabilities and Needs Survey, Protiviti
SLIDE 9 Nontechnical Skills Gaps
Business acumen Persuasion Developing board-committee relationships Strategic thinking
Sources: Common Body of Knowledge (CBOK), The Institute of Internal Auditors, 2015 Internal Audit Capabilities and Needs Survey, Protiviti
SLIDE 10
Emerging Areas of Focus
SLIDE 11
RELEVANCE EXCELLENCE RESULTS
Identifying skills gaps in your team
SLIDE 12
Identify Skills Gaps
Start with employee reviews – but make it an ongoing process Consider feedback from internal clients Consult outside sources
SLIDE 13
Addressing Skills Gaps
Invest in your team Invest in yourself Encourage staff to invest in themselves
SLIDE 14
RELEVANCE EXCELLENCE RESULTS
Professional development
SLIDE 15 Poll Question 2
How has your budget for internal audit employees’ professional development changed the past 3 years?
- Increased
- No change
- Decreased
SLIDE 16 Professional Development
Formal training Reimbursement
- Conferences
- IIA membership
- Certifications
SLIDE 17
Professional Development
Mentorships Job-shadowing Role rotation Cross-training Brown-bag sessions Guest speakers Stretch assignments
SLIDE 18 The Value of Certification
Areas with greatest improvement between certified and noncertified internal auditors:
- 1. International Professional Practices Framework
- 2. Governance, risk and control
- 3. Business acumen
Source: Common Body of Knowledge (CBOK), The Institute of Internal Auditors
SLIDE 19 Poll Question 3
Does your company reimburse internal auditors for expenses related to earning, maintaining certifications?
- Yes, full reimbursement
- Yes, partial reimbursement
- No reimbursement
SLIDE 20
RELEVANCE EXCELLENCE RESULTS
Outside resources
SLIDE 21
Outside Resources
The IIA External auditors Consultants, project professionals Guest speakers Your network Toastmasters
SLIDE 22
RELEVANCE EXCELLENCE RESULTS
Making staff part of the process
SLIDE 23
Incorporating staff into the process
Ask them Self-assessments Inter-staff trainings Volunteer experience New hires’ insights
SLIDE 24 Poll Question 4
How frequently do you have an external quality assessment review conducted of your internal audit function?
- Every year
- Every 5 years
- Every 6-10 years
- Only if someone brings it up
- Never
SLIDE 25
RELEVANCE EXCELLENCE RESULTS
Formalize it
SLIDE 26
Formalize it
Write it Measure it Monitor it Change it
SLIDE 27
Takeaways
Addressing skills gaps not getting easier Deficiencies in both technical, soft skills Managers have options Treat bridging gaps like other goals
SLIDE 28
Filling the Void
SLIDE 29 RELEVANCE EXCELLENCE RESULTS
Filling the Void: Addressing Today’s Skills Gaps in Internal Audit
Paul McDonald, senior executive director, Robert Half Larry Harrington, CIA, CRMA, QIAL, chief audit executive , Raytheon Company, global chairman, The IIA
