Nirpendra Ajmera, Nick – Chief Audit Officer
Internal audit has undergone significant transformation over the past two decades. Initially viewed as a compliance necessity, it has evolved into a strategic function that adds value to organizations. This article explores the journey of internal audit, its expanding role, and the skills required for modern auditors to succeed.
Internal audit began as a function focused primarily on compliance and fraud detection. The passage of the Sarbanes-Oxley Act in 2002 marked a turning point, increasing the emphasis on internal controls and financial reporting. Auditors were tasked with ensuring adherence to regulations and identifying financial misstatements.
As businesses grew more complex, internal audit expanded its focus to include risk management. Auditors started to assess operational risks, IT risks, and compliance risks, providing insights that helped organizations mitigate potential threats. This shift required auditors to develop a broader understanding of business processes and emerging risks.
Today, internal auditors are seen as strategic advisors who provide valuable insights to senior management and boards. They not only identify risks but also offer recommendations for improving efficiency and achieving strategic objectives. This role demands a deep understanding of the business, industry trends, and regulatory changes.
To thrive in this evolving role, auditors need a diverse skill set. Technical proficiency in auditing and accounting remains crucial, but soft skills like communication, critical thinking, and problem-solving are equally important. Auditors must be able to articulate their findings clearly and work collaboratively with stakeholders across the organization.
The integration of technology and data analytics has revolutionized internal audit. Advanced tools enable auditors to analyze vast amounts of data, identify patterns, and detect anomalies more efficiently. Familiarity with data analytics, cybersecurity, and IT controls is essential for auditors to remain relevant in the digital age.
An example of successful transformation is Nirpendra Ajmera, who has led critical projects across multiple industries. His ability to build strong relationships with stakeholders, coupled with his technical expertise and strategic insights, has earned him accolades and recognition in the field. Ajmera’s journey illustrates the impact of effective internal audit on organizational success.
The evolution of internal audit from compliance to strategic advisory reflects the changing needs of businesses in a dynamic environment. By embracing new technologies, honing their skills, and adopting a strategic mindset, internal auditors can continue to add significant value to their organizations. As the role of internal audit continues to evolve, it will remain a vital component of corporate governance and risk management.