The Transformation of Internal Auditing

Challenges, Responsibilities, and Implementation

Gaurav Kapoor, and Michael Brozzetti, CIA, CISA, CGEIT

The field of internal auditing has transformed significantly over the past decade. Several factors have contributed to this change, including the increased complexity of a globalized marketplace, high-profile fraud and corruption scandals, new laws and regulations, and increased demand from stakeholders for greater assurance. (See Exhibit 1 for some specific shifts that have occurred with respect to internal auditing.) Within the profession, internal auditing serves as a corporate conscience and guiding force that helps to ensure that business decisions and management operations remain consistent with an organization's mission, strategies, and goals.