Weekly Wrap – 21st December 2015

Hi I am Tom McLeod, Co-Founder of McLeod Governance.

This is what I would be thinking about this week.

Imagine a day – perhaps in the near, perhaps in the distant future – when Internal Audit does not exist.

That question was put to me a couple of weeks back by a reader of the newsletter.

And it stopped me and made me think.

There was a moment, at some point in time, where Internal Audit didn’t exist and it had to be invented.

So by the logical extension there will be a moment when Internal Audit ceases to exist and after which something new comes about.

What will drive that moment of demise? The apocalyptic moment.

There are three things in my mind that will do that.

Firstly – us as Internal Auditors not keeping up with the needs of our stakeholders.

Just delivering what we have always delivered in a changing world means that we will be behind the expectations of our key customers.

Secondly it is around education.

And this is perhaps where our ultimate goal should be to do ourselves out of a job.

If we can educate all our stakeholders about the importance of controls and the need for constant review and improvement then that is, in itself, something that we should be proud of that we have brought that level of maturity.

The third is around the issue more broadly of technology and the way that it will control us.

At the moment – as we have talked about many times – we communicate in the written word.  We are starting to see people communicate via audio and video.

But I wonder in the future if there is another means by which we can improve internal controls without the need to communicate at all.

It is at that point that the apocalyptic end is anything but.

It is just a new variation.

It may not be called Internal Audit but it will still be there for the betterment of the internal control environment of those organisations with which we work.

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