A recent survey by The Institute of Internal Auditors (IIA) reported a significant increase in respondents’ plans to hire additional internal audit staff. Key highlights from the survey include:
- 30% of respondents expect to increase internal audit staff in 2017, compared with 5% who plan a decrease. That’s up from 25% who planned for a staff increase in 2016.
- Internal audit focuses 19% of its time on operations, compared with 14% on financial reporting (including Sarbanes-Oxley testing) and 13% on compliance not related to financial reporting.
- The top five internal audit skills that need more training are data mining and analytics (67%), cyber-security and privacy (52%), analytical or critical-thinking skills (49%), communication skills (45%), and industry-specific knowledge (36%).
According to the survey respondents, internal auditors need to be increasingly responsive to select disruptors that are affecting many organizations. Today’s disruptors are associated with select risk factors that are characterized as “significant, quickly developing, and potentially unplanned or unanticipated events that create risk and potential opportunity, demanding the attention and resources of the business.” The key disruptors are:
- 58% New regulations
- 44% Changes in business model or strategy
- 37% Cybersecurity and privacy monitoring threats
- 35% Financial challenges
- 34% Technology advancements
It’s reasonable to state that most school officials can readily identify with the risk factors listed above. The complexities of these risk factors combined with the inherent complexities of public school administration and management speak to the need for all mid- to large-enrollment size school districts to consider the adequacy of internal auditor-related resource levels in their districts.