Audit Leadership Scouts: Building Teams to Find Top-Tier Assurance Professionals

“Great vision without great people is irrelevant,” Jim Collins once famously said. How does this apply to the world of internal audit and assurance? In the complex ecosystem of financial oversight, the caliber of the audit team directly correlates to the value they provide. But what makes an audit team not just functional, but exceptional? And more importantly, how do we build such a team?

Audit leadership in today’s market is not just about ensuring compliance and controls; it’s about building teams that can adapt, innovate, and align with business objectives to accelerate value. Patricia Kaim, in her book “Internal Audit Leadership,” emphasizes the need for agility, emotional intelligence, and high morale in developing high-performing internal audit (IA) teams (Kaim, P.). These attributes are critical as they enable auditors to navigate the complexities of modern business environments and contribute to the strategic goals of the organization.

A webinar by Wolters Kluwer further elaborates on the characteristics of high-performing audit teams, highlighting business alignment, effective stakeholder partnerships, empowering leadership, and efficient governance as key factors (Wolters Kluwer). These elements, when combined, form a robust framework for audit teams to deliver extended business contributions.

In recruiting for these teams, there is a shift in the profile of the ideal candidate. The Risk Leadership Network suggests recruiting risk professionals into the risk and audit team rather than traditional auditors. This is because risk professionals typically possess a broader skill set that includes leadership, analytical reasoning, relationship management, and communication (Risk Leadership Network). These skills are essential for today’s audit teams, as they are increasingly required to provide insights and foresight rather than just hindsight.

The development of audit teams should also focus on enhancing these critical skills. Withum’s white paper on “6 Habits of Highly Effective Audit Teams” demonstrates that while technology is an important complement, it is the foundational habits of consistency, quality, and efficiency that are paramount (Withum). Audit teams must, therefore, be adept at both leveraging technology and cultivating these habits to improve audit quality and efficiency.

Furthermore, the enthusiasm for sustainability reporting and assurance among audit professionals presents an opportunity for audit firms. A survey revealed that this enthusiasm is not only prevalent among current professionals but also among potential entrants to the profession. This could be a strategic talent attraction avenue for audit firms to explore (ACCA Global).

In light of these insights, it is evident that the recruitment and development of audit teams must be strategic and forward-thinking. Audit leadership scouts should look for professionals who not only have the technical expertise but also the soft skills and strategic mindset to drive the audit function forward. This includes the ability to understand and align with business goals, build effective relationships with stakeholders, and embrace new challenges such as sustainability reporting.

In conclusion, building top-tier assurance teams in the modern business environment requires a nuanced approach that goes beyond traditional auditing skills. It requires a focus on agility, emotional intelligence, stakeholder alignment, and leadership capabilities. As organizations continue to navigate an ever-evolving landscape, the audit teams that will stand out will be those that can adapt, innovate, and add strategic value. Audit leadership scouts must, therefore, prioritize these attributes in their recruitment and development strategies to ensure that their teams are not just capable, but exceptional.

References

Kaim, P. (2023). Internal Audit Leadership: Elevating the Internal Audit Function to Accelerate Value (1st ed.). Taylor & Francis. https://www.taylorfrancis.com/books/mono/10.4324/9781003431893/internal-audit-leadership-patricia-kaim

Wolters Kluwer. (n.d.). High-Performance Internal Audit Teams. https://www.wolterskluwer.com/en/expert-insights/high-performance-internal-audit-teams

Risk Leadership Network. (n.d.). How to Optimise Joint Risk and Audit Teams. https://www.riskleadershipnetwork.com/insights/how-to-optimise-joint-risk-and-audit-teams

Wolters Kluwer. (n.d.). Six Habits of Highly Effective Audit Teams to Improve Audit Quality and Efficiency. https://www.wolterskluwer.com/en/expert-insights/six-habits-of-highly-effective-audit-teams-to-improve-audit-quality-and-efficiency

ACCA Global. (2024, March). Audit at a Crossroad. https://www.accaglobal.com/gb/en/news/2024/March/Audit-crossroad.html