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2015 Global Council — Summary Report

At the 12th annual Global Council, held in Beijing, China, 12–15 April, IIA leaders from around the world

came together to network, learn, and contribute to the future of our global organization and profession. A

total of 75 Institutes (including the United States and Canada) and four regional organizations (ACIIA,

AFIIA, FLAI, and UFAI) were represented at the 2015 Global Council, one of the largest in history, with a

total of 143 delegates (plus their 50 guests), including The IIA’s Executive Committee and key Global

Headquarters staff.

IIA–China co-hosted the event in partnership with IIA Global Headquarters and offered their warm and

generous hospitality to ensure a memorable experience for all. IIA–China’s exceptional contributions

included hosting and sponsoring a spectacular welcome event that was a wonderful reflection of Chinese

culture; organizing the participation of our guest speaker, the Auditor General of China; planning a very

well-attended press conference that led to impressive coverage by the local media; hosting a luncheon at

the offices of the China Internal Audit Services; and providing several gifts to attendees as a souvenir of

their stay in China.

This year’s program focused on four key elements of The IIA’s 2015-2020 Global Strategic Plan: 1.

Capacity Building; 2. Professionalism; 3. Advocacy/IIA as a Leader; and 4. Sustainable Value.

Background papers, discussion questions, and polling questions were distributed in advance to all

participants to frame the Global Council discussions aimed at seeking valuable input on challenges and

opportunities impacting the internal audit profession globally as well as identifying ways The IIA’s network

can work together to further strengthen and improve our global organization.

The IIA Global Chairman of the Board Anton van Wyk opened the Global Council with a roll call of the 75

Institutes in attendance and welcomed guest speaker, Mr. Liu Jiayi, China’s Auditor General and

INTOSAI Chairman. Liu shared inspiring comments about the contributions The IIA has made to the

internal audit profession around the world and in China.

Attendees were also given a progress report on outcomes from the 2014 Global Council in Dubai, U.A.E.

and how the results of those discussions helped improve the strategic planning process; provided insight

into the potential impact of changes to the IPPF; defined The IIA’s role in the areas of risk and control;

identified areas of opportunity for enhanced collaboration between Institutes and IIA Global Headquarters

regarding global advocacy, and impacted projects to enhance member services.

Following a brief review of The IIA’s 2015-2020 Global Strategic Plan by Senior Vice Chairman of the

Board Larry Harrington, the Global Council went into full gear to dive into the Capacity Building and

Professionalism topics. Instant polling technology was used throughout the general sessions to gather

attendees’ feedback that provided context to the discussion sessions. The discussions held in

roundtables of 10 were facilitated by IIA Executive Committee members, chairs of regional organizations,

and documented by IIA Global Headquarters staff.

On the second day, IIA Global President and CEO Richard Chambers delivered a presentation on the

State of The IIA and the Profession around the world, including preliminary results from the 2015 CBOK

practitioner survey. The program continued with general sessions and discussions on the topics of

Advocacy/IIA as a Leader and Sustainable Value. Participants were tasked to develop an “elevator

speech/tweet” about what internal audit is.

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All discussion sessions were lively and reflective of the diverse views of Institute leaders. The information

captured at each of the 14 discussion tables has been analyzed to develop summary reports for each

topics. These reports – included in this document – will provide valuable input to various committees and

task forces working on these strategies.

Van Wyk wrapped up the discussions with a challenge for each delegation to formally document how their

Institute will contribute to the implementation and success of collective goals and strategies discussed at

Global Council. To commemorate this, the first ever Global Council Commitment Ceremony was held

where each participant walked on stage to sign a banner that listed the core values of The IIA’s 2015-

2020 Global Strategic Plan and pose for a commemorative photo.

Networking Another Global Council goal is to provide participants with opportunities to network with each other, learn

about different practices and cultures, and build relations with colleagues across the world. The

connections created among Institute leaders, The IIA’s executive committee members, and key Global

Headquarters staff don’t just occur during the formal program but continue throughout the Global

Council’s social and cultural functions. This year, the cultural part of the program included guided tours for

all participants to two spectacular sites, the Forbidden City and the Great Wall of China.

Institute leaders are encouraged to utilize the Institute Leader Connection LinkedIn group to keep in touch

with colleagues from around the world. This platform is a direct result of input from the 2014 Global

Council in which delegates expressed a desire to have a forum to outside of Global Council or other face-

to-face events to continue the discussions, collaborate, network, and share.

Next Steps A summary report for each discussion topic is included in this document. These, together with the

detailed notes from the sessions and polling results, are shared with the global committees, task forces,

and IIA Global Headquarters departments that are working on these initiatives so the feedback from

Global Council participants can be considered. Ongoing progress reports on these initiatives will be

shared with all Institutes through emails, the monthly Global LeadersLink eNewsletter, quarterly Institute

Online Briefings, and at future regional and global forums.

All Institutes are encouraged to:

Review and follow up on the commitments (last page in this document) made in Beijing during the

Commitment Ceremony.

Share the outcome of Global Council with their board and members utilizing the background

papers, PowerPoint presentations, summary reports, photos, etc., available on the Global Council

web page.

View, share, and download photos from the Press Conference, Welcome Reception, General

Session and Networking, and the Commitment Ceremony. Also, be sure to tag photos to the

Global Council Facebook Photo Album.

Plan and budget to ensure their Institute is represented at the next Global Council.

2016 Global Council The next Global Council will be held 16–17 July 2016 in New York City, NY, USA as a part of The IIA’s

75th Anniversary Meetings and Events program, including the 2016 International Conference.

For comments and suggestions, please contact The IIA’s Institute Relations Department at

institute.relations@theiia.org.

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Session 1: Capacity Building The 2015 Global Council discussions on Capacity Building intended to collect input from Institutes on

ways to ensure all members have access to no less than minimum services, either directly from their local

Institute or through additional, external support. Through polling questions and group discussions,

Institutes shared ways they have collaborated among themselves as well as exchanged views on how to

enhance and expand partnership across The IIA network. Additionally, participants debated and shared

specific ideas to help support and fund the needs of emerging and small Institutes. For a more productive

discussion, participants were divided into two subgroups. Gathered in one room, more developed

Institutes debated on the challenges and opportunities in assisting the growth of developing Institutes,

while the latter met in separate rooms to discuss what type of support they need to advance the

profession in their countries and regions.

This session’s discussion was mainly focused on better understanding three aspects that will be key in

the development of an effective global capacity building program. First, the challenges and opportunities

Institutes face, or foresee facing, when collaborating among themselves. Second, how Institutes envision

this program being conducted including quality control, guidelines, and rewards. And third, considerations

about the creation of an IIA development fund earmarked to capacity-building efforts.

Opportunities According to the polling results, 35% of all participating Institutes already provide support to others.

Training is the most shared service (74% of those who provide support, provide training to another

Institute), followed by publications (57%), administrative services (42%), mentoring (42%), and quality

assessment (40%). Although current collaboration is still low, the results also indicate a great appetite

from Institutes to expand it. Two-thirds, or 67% of the participating Institutes showed interest in receiving

support. Furthermore, 81% stated they would like to provide support to other Institutes. Among the most

needed services are quality assessments (83% of those who showed interest in receiving support

selected QAs as one of their preferences), followed by train-the-trainer (78%), and training materials

(58%). Additionally, during the discussions, participants frequently mentioned their needs for a global

speakers database, leadership mentoring, and visits by renowned professionals to support local

advocacy.

Challenges Language and cultural barriers were predominantly identified as the main challenges faced by Institutes

when collaborating among themselves. In some areas of the world, such as Central/South America,

cooperation is quite high as the vast majority of Institutes speak the same language. On the other hand,

the opposite happens in less homogenous areas such as Asia/Pacific. The results of the polling questions

illustrate this scenario very well. In Central/South America, 71% of the Institutes already provide some

sort of support to other Institutes in the region, whereas only 14% currently do the same in Asia/Pacific.

The second largely identified challenge relates to staff and financial resources. Although willing to

continue assisting with capacity-building initiatives, developed Institutes raised the concern that their

resources are fully deployed on local programs so they would only be able to help if the impact to their

members and personnel were minimal. As for financial resources, developing Institutes indicated that

affordability of products and services offered by more developed Institutes is difficult especially due to the

lack of funding or economic factors.

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Other identified challenges, albeit smaller in scale, include the difficulty in customizing products and

services, as well as the cost and quality of translations.

Resources Sharing (Quality Control, Guidelines, and Rewards) Besides discussing the potential types of support, services, and resources that could be shared among

The IIA’s network, participants also debated on how this program could work including whether there

should be any type of quality control, guidelines, and incentives governing the relationship between

donors and recipients. Although the majority of Institutes agree that quality control is hard to centralize

due to its subjective nature, they also agree that some type of oversight must exist to protect the IIA

brand and ensure that minimum quality standards are met. Overall, the consensus was that quality

control should be done locally; however, based on guidelines developed by The IIA. In addition to

guidelines on quality control, the majority of participants also believe that The IIA should develop pricing

guidelines and standard rules that all donors and recipients would follow. However, it is important that

The IIA does not set prices but leave it up to Institutes to negotiate the terms case-by-case instead.

Another important aspect discussed related to whether Institutes should be rewarded to participate in

capacity-building strategies. Most participants are in favor of a rewards system and believe that global

recognition is the best compensation Institutes can have for supporting the strengthening of the

profession worldwide. It does not mean that services and products that have a direct cost should be

delivered for free. The majority of Institutes believe that although they all should follow the motto

“Progress through Sharing,“ but note that it is important that donors at least recover their cost.

Funding The last, but not least, topic discussed related to whether The IIA should seek ways to develop a fund

earmarked to capacity-building efforts with donations from other Institutes and external organizations. The

idea was well received and widely accepted by all participants who also stated that donations should go

beyond the monetary format to include software, training material, publications, and so forth. Most

participants believe that The IIA should approach external donors (World Bank, for example) for funding.

Additionally, they also suggested other alternatives such as giving the opportunity for members around

the world to make donations or even slightly increasing the per member fee to Institutes.

Conclusion The conclusion of this discussion indicated that most Institutes are in favor of the development of a

capacity-building program for The IIA network. Among the main challenges are language, cultural

aspects, and resources, whereas opportunities vary from the exchange of products and services to

leadership mentoring, visits by renowned professionals to support local advocacy, and the development

of global speakers database. Additionally, Institutes believe that a quality control system must be in place

to protect The IIA’s brand; however, it should be done locally based on principles and guidelines

promulgated by The IIA. Interestingly, principles and guidelines were recommended as a way to govern

the relationship among Institutes in the network. As far as the reward system, it was indicated that this

strategy should be deployed and focused mainly on global recognition and cost-recovery. The

development of a capacity-building fund is widely accepted with participants stating that the focus should

be on donations from external donors and other non-financial resources.

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Session 2: Professionalism The IIA’s 2015-2020 Global Strategic Plan outlines a number of strategies related to Professionalism.

Global Council participants were asked to discuss their views on those strategies which include

developing timely and relevant content, supporting diverse career paths, managing local guidance, and

promoting conformance to The IIA’s International Standards for the Professional Practice of Internal

Auditing (Standards) and Code of Ethics.

Developing Timely and Relevant Content Delegates discussed their opinions on the timeliness, relevance, and sufficiency of the knowledge and

guidance being provided for members, globally, from IIA Global Headquarters. For the most part, the

views were that, while there is always room for improvement, in general knowledge and guidance

produced is mostly relevant and the quantity is sufficient. In the view of some, opportunities exist to

enhance timeliness. Common themes emerged as far as considerations for the future, however.

A common concern was addressing the needs of our diverse membership, the limited resources

available, and having sufficient capacity to translate content timely. Translation is expensive, and the time

it takes to get it done can detract from the relevance of the content once it is publishable in all requisite

languages. Another call for action, which is well recognized, is the desire to develop and promulgate

content on emerging issues and forward-looking topics. While not a consistent theme in feedback, some

thought the guidance being developed was focused more on Western, English-speaking countries, in

areas of the world where both organizations and internal audit might be more developed. Finding ways to

allow input to the guidance development activities from a regional perspective, taking into account

volunteer committee composition, was one suggestion to deal with this. Recognizing the challenges of

resourcing, there was a desire to see more topical, sector-specific, and IT guidance. A suggestion for

future consideration was the development of an emerging issues blog and/or chatroom (forum).

Supporting Diverse Career Paths Global Council delegates were asked to consider the evolving trends in rotational staffing models for

internal audit and what the implications may be in how The IIA supports internal audit professionals who

may have arrived in internal auditing through non-traditional means and have no intent on staying in the

field for more than a few years. As backdrop, when polled, 87% of voting delegates indicated that the

average tenure for someone in internal audit today was six or fewer years, and 25% indicated that the

average tenure was declining.

While delegates saw most of their members coming into internal auditing from accounting/finance areas,

as expected, some were also seeing more diversity among their membership’s rotational entry and exit

points (to include second line of defense functions). The level of sufficiency of qualified internal auditors in

the marketplace combined with the lack of sufficient internal audit academic programs were cited by

some as contributing factors to the emergence of more rotational activity. However, the benefits of well

managed rotational programs, helping both internal audit and the organization over the long term, were

acknowledged by many as being an overall positive trend.

There was a minority call for a reconsideration of the three-year experience requirement to become a

Certified Internal Auditor. As well, there was a desire to find a way to better support unseasoned or

inexperienced CAEs who rotate into the profession without any or sufficient prior internal audit

experience.

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To better understand the dynamics and drivers, some suggestions were provided: The IIA could conduct

a study on where CAEs come from and assess whether there are any increases in the prevalence of

CAEs who “spent time in internal audit”; conduct a study of former members; continue efforts to advocate

the benefits of time in internal auditing to CEOs, audit committees and boards; and enhance advocating

to colleges and universities as to the value of internal audit programs and curricula of study,

specialization, and degree options. Considerations offered for the future included the development of

short training modules, more web-based training, continuing to raise the image of the profession through

advocacy, marketing, and lobbying, and pursuing involvement in more stakeholder-based events (C-suite

and Board).

Managing Local Guidance Today, recognition exists of the major provisions of the Board Policy Manual (BPM) as to who can and

cannot develop and publish mandatory and recommended guidance. However, documents being

produced by local Institutes for either member and/or stakeholder benefit, whether or not called

“guidance,” are being viewed and interpreted as guidance “from The IIA.” According to polling results,

65% of Institutes have no plans to issue guidance in the foreseeable future. Regardless, that leaves more

than one-third who are producing, or plan to produce, guidance. It was helpful that some participants

were able to discuss their thoughts on how we can better support and coordinate the process by which

everyone, including Institutes, may contribute to developing and promulgating practitioner guidance.

Recognizing the desire, if not the need, to ensure global quality control was not lost on the delegates.

Generally, however, most agreed that the key was better communication and coordination between and

among IIA Global Headquarters and Institutes, as everyone was trying to do their utmost best to serve

members but not necessarily taking the time to proactively collaborate. How that collaboration occurs so

that it doesn’t negatively impact timeliness was a concern, however. Knowing in advance the scope,

plans, and timing of the work, before work was commencing on a particular guidance piece, was offered

as a way to positively address any timeliness impacts. Another delegate suggested that a global

committee could be placed in charge of managing any coordination aspects. Additionally, two specific

considerations were offered: 1. When relevant local legislation, regulations, or statutes are being

developed or already exists, the local Institute must reserve the right to develop and promulgate local

guidance, and 2. Global needs to develop specific and clear guidelines and parameters for all Institutes,

to improve overall IIA brand management globally.

Promoting Conformance to the Standards and Code of Ethics Delegates also discussed the challenges associated with getting an understanding of the level of

conformance with the Standards and Code of Ethics across the profession, while recognizing the fact that

a strategic goal for The IIA is to find ways to hold members accountable for conformance to the required

elements of The IPPF. Given this, most delegates acknowledged that it is very difficult to assess the level

of conformance, and that there are only imperfect measures that exist today: surveys (which are not very

accurate) and results of quality assurance reviews (which are anecdotal at best).

The table discussions did identify some common themes for consideration, which emphasized the

importance of advocacy and the role IIA Global Headquarters needs to play in supporting local efforts of

advocating to governments, regulators, stock exchanges, boards, audit committees, and company

management the value of not only conforming to the Standards, but also the criticality of having external

quality assessments performed. A number of delegates further indicated that getting external parties to

mandate that conformance to the Standards is required (through legislation, regulation, or listing

exchange requirement) will be the only way to move this forward in a meaningful way. Some also pointed

out that having experienced, well qualified assessors doing quality reviews are significantly important

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from a credibility standpoint, and that consideration should be given to how The IIA approaches this going

forward (to potentially include certification of assessors, voluntary listing of companies who have received

an EQA, and providing incentive or praise to those organizations that have are consistently demonstrating

conformance).

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Session 3: Advocacy / IIA as a Leader The IIA’s 2015-2020 Global Strategic Plan emphasizes the importance of elevating both the profile and

the voice of internal audit and The IIA. The objective of this session was to identify initiatives both globally

and locally that would help to close the perception gap with stakeholders over who internal auditors are,

what they do, and the value they bring to organizations. Participants discussed how internal audit is

perceived as a relevant, trusted, and influential resource to stakeholders; obstacles to creating a positive

perception of internal audit; and opportunities to enhance The IIA’s influence globally and locally. Each

table also was tasked with preparing an “elevator speech,” or 140-character tweet, that would clearly and

succinctly articulate “what an internal auditor is and does.” Following are the key takeaways from those

interactions:

Internal Audit as a Relevant, Trusted, and Influential Resource Through responses to polling questions and roundtable discussions, participants expressed confidence

that internal audit is currently perceived as the most trusted and influential resource to its stakeholders in

the areas of internal controls, compliance, anti-fraud, audit committee effectiveness, governance, and

management. However, the response to polling questions also found that internal audit is not considered

the most trusted and influential resource relative to technology, integrated reporting assurance, and

combined assurance.

While internal audit is relevant from the perspective of internal auditors, that may not be the case from the

perspective of internal audit’s stakeholders. There is an opportunity to close that expectation gap through

advocacy efforts.

In addition, the participants felt it was extremely important for the internal audit profession to be seen as a

protector of the public good, and that internal audit is perceived as critical to good governance; a

facilitator of foresight toward organizational sustainability; and the moral compass of the organization.

Meanwhile, though the majority of participants felt it was important for internal audit to be seen as

courageous in challenging all lines of defense, less than half of those polled considered this to be an

extremely important issue.

Obstacles to Creating a Positive Perception When asked about obstacles to creating a positive perception of internal audit, Global Council

participants expressed that, though there are obstacles to communicating internal audit’s value in the

areas of risk management, audit committee effectiveness, governance, and combined assurance, the

greatest obstacle is in communicating internal audit’s value in providing assurance around technology

issues. In contrast, participants felt that internal audit faces virtually no obstacles toward acceptance in

compliance, anti-fraud, and internal controls.

The lack of mandatory requirement for internal audit and limited recognition/conformance with the

Standards are perceived as obstacles for promoting internal audit as a relevant, trusted, and influential

resource. In addition, there was a common concern that internal auditors do not have the necessary skills

to adequately address all key risks, particularly those around technology. This shortfall can position

internal audit poorly as a leader on those most critical issues concerning management.

Finally, many mentioned that the greatest obstacle to elevating the role of internal audit is our inability to

articulate and promote the effectiveness and value of the profession.

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Opportunities to Enhance The IIA’s Influence Globally and Locally To build credibility with stakeholders, internal audit teams must possess relevant skills. The IIA and its

Institutes have an opportunity to provide the proper tools and resources on a global and local level to

ensure internal auditors around the world have appropriate skills.

Specifically, participants mentioned that it is important for The IIA to invest in academic relations to

promote the value of internal auditing as a rewarding career choice, address the expectation gap over

what internal audit thinks it is doing versus how that is perceived by stakeholders, communicate a

common message around the world, and develop stronger leaders to elevate our voice.

Many of the participants shared their initiatives and ideas to help elevate internal audit as a relevant,

trusted, and influential resource. These initiatives include:

Providing professional development opportunities to ensure internal auditors have the right tools

and skills to present themselves effectively and professionally.

Providing training and insights to corporate directors to help them understand how internal audit

can be and is a necessary resource.

Targeting stock exchanges, audit committees, and regulatory bodies to build awareness of the

value of internal auditing and to eventually mandate requirements around having an internal audit

function that operates in accordance with The Standards.

Changing messaging and branding by moving away from just internal auditing to broader GRC

focus.

Partnering with related organizations.

Surveying stakeholder expectations.

Conducting workshops with CEOs.

Leveraging European advocacy activities at the national level.

Helping and engaging CAEs to become advocates for the profession.

Successful outcomes were identified to include management continuously reaching out to internal audit

for advice and assistance; internal audit having a seat at the table; young professionals seeking jobs in

internal auditing because they see it as a meaningful, strategic function within an organization;

recognition of the profession by regulators, other associations, and other disciplines; and increased

membership in The IIA.

What Should Be Our Elevator Speech? Participants were asked to bring to Global Council their “elevator speech” to describe in a clear and

concise way, using the Twitter model of 140 character or less, what internal audit is. In their groups,

participants were asked to share their elevator speeches and work together to develop a single concept

that would best represent the thoughts of the group. The agreed-upon elevator speeches/tweets included:

#DocAudit: Internal audit checks the health of the organization and gives advice to help keep it fit

for business and long-term success.

Transforming knowledge into insight and risk into foresight across operations, business strategy,

and governance.

#InternalAudit partners to build #trust and instill #confidence, enabling our organization to

maximize opportunities and reinforce #value.

We protect the organization’s health, provide medicine and other cures, and help it keep its

promise today and tomorrow.

An internal auditor is like a trustworthy and courageous sailor who assists the captain to steer the

ship safely into the chosen harbor.

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Give management and the board comfort and confidence to make effective business decisions

that create sustainable value.

Telling the important people what’s really going on – so they can do the right thing.

We help organizations avoid disaster and enable success.

Internal audit helps the organization to go forward faster but safer in the business journey.

Like a doctor, we help our company to be in good health.

Winning hearts and minds of stakeholders.

We are the eagle eyes for the organization that monitors its pulse and allows the stakeholders to

have a peaceful mind.

We provide steps in the assembly of a puzzle where pieces are scattered in every corner. Ensure

all pieces are unveiled, in good state and at the end your puzzle is secured.

Internal auditors are your guide for positive change, helping you to achieve more with less and

allowing you to sleep with your eyes closed.

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Session 4: Sustainable Value Attracting and Retaining IIA Members The IIA’s 2015-2020 Global Strategic Plan outlines how The IIA will deploy both financial and business

models that generate sustainable value for members. Global Council participants shared their thoughts

on what we must all do to attract and retain members. General consensus was that The IIA (Global HQ

and the Institutes collectively) needs to continue to raise its visibility with regulators, legislators, audit

committees, and other stakeholders, advocating internal auditing in legislation and promoting its value. It

was generally agreed that The IIA needs to reach outside our profession and gain broader appeal through

joint offerings with other organizations (ISACA, ACCA, corporate directors). At the same time, The IIA

must do a better job a promoting the profession to the younger generation, starting with more programs

and information at the university level.

The key to retaining members is to offer diverse and high-quality programs and products and networking

opportunities. Members want information that can help them solve problems and improve their skills. The

new specialty centers for government, financial services, and risk were acknowledged as beneficial to

increasing value. Several participants also mentioned the value of leveraging visits by senior IIA

leadership to visit key stakeholders and engage in media interviews. Members-only services (e.g., free

webinars) and member-nonmember pricing also help to retain members.

Enhancing the Value of Certification Participants were asked how The IIA can enhance the value of certification around the world. During the

discussions several impediments to certification were noted, including lack of affordable training materials

in local languages, challenges with exam question translations, difficulty of exams, cost of exams and

study materials, and inconvenient exam sites. A low pass rate has also discouraged candidates in some

countries. It was noted that candidates’ motivation is often linked to the designations being recognized as

benefiting their careers.

There was general consensus that the key to enhancing the value of certification is greater marketing,

including targeting CAEs, stakeholders, and the accounting firms to encourage recognition and promotion

of the CIA designation. There is a need for marketing material in local languages. It was suggested that

The IIA should launch a promotional campaign on what the CIA designation means for someone’s career

and its competitive advantage, showcasing CAEs and audit functions that require the CIA, and

celebrating individuals with the CIA designation who are prominent in government or industry (e.g., CEOs

who are CIAs). Linked to attracting members as indicated above, The IIA also needs to embed

certification in legislation and regulations for internal auditing. Other suggestions include:

Advocating the value of certification to HR professionals and search firms.

Encouraging CAEs to promote certification within their departments and require it for

advancement.

Providing short videos in various languages on why members should attain the CIA designation.

Establishing CIA review training at the university level.

Enhancing recognition of new CIAs with letters to their supervisors and local ceremonies.

Approaching the World Bank and other donor organizations to subsidize the cost of the exams

and review materials.

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Assessing Risks

Global Council participants were asked through polling questions if they had controls in place to guard

both financial assets and membership data. While approximately 85% responded positively to both, only

28% indicated they conduct an annual risk assessment. The discussion session focused on the top risks

that would affect the sustainability of Institutes and ultimately the sustainability of The IIA.

Institute Risks It was acknowledged that a risk assessment tool (currently being developed by IIA Global Headquarters)

would be helpful. Most Institutes identified their main risk as financial, including losses in training revenue,

increasing Institute fees, and a deteriorating exchange rate against the U.S. dollar. Another high risk

focused around people, including an aging membership and challenges to attract the younger generation,

identification of new leaders for succession planning, and retaining sufficient staffing to service the

members. Other risks include:

Encroachment of CPAs/CAs into internal auditing, including in legislation and training.

Loss of credibility of the Institute and its relevance to its members.

Cybersecurity and data breaches.

Lack of branding The IIA as a leader for the profession.

Decreasing relevance of The IIA in the GRC area, with other professionals stepping into those

areas.

Risks to The IIA Several participants believe The IIA is not playing a strong enough leadership role in the GRC field. This

is connected to a lack of recognition by stakeholders of the role internal audit should play and perception

of The IIA’s lack of influence on key issues affecting the profession. Another identified risk is The IIA’s

size and diversity which could lead to the actions of one Institute harming the reputation of the

organization across the globe. Other risks include:

Not all internal auditors practice in accordance with the Standards, and nonconformance could

lead to scandals or lack of reliability within internal auditing.

Licensed professionals are moving into the internal auditing space.

The IIA is not seen as relevant to the younger generation.

There is a lack of wide acceptance of and demand for certification.

Participants were almost unanimous in the need for IIA Global Headquarters to take the lead in

effectively, systematically, and collectively confronting emerging risks. IIA Global Headquarters should

provide guidance and tools for the Institutes on controls, risk assessment, and emerging issues. IIA

Global Headquarters needs to play a stronger role in gathering emerging issues from the Institutes and

global organizations and reaching out to assist where there are local concerns. Institutes also need more

information on how to report issues to IIA Global Headquarters and escalate critical risks to receive a

global focus. Where possible, Institutes should be provided with technology tools that can strengthen

controls, provide membership data in a secure environment, and encourage collaboration in managing

risks among Institutes.

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2015 Global Council Beijing, China

12 – 15 April 2015

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Collective Commitments

Given the ideas and suggestions discussed during the 12th annual Global Council, we would like to better

understand what activities your Institute can manage to contribute to the collective goals and strategies of

The IIA? Will you commit to actively follow-up, collaborate, and remain engaged on these key elements

of The IIA’s 2015-2020 Global Strategic Plan? Are you willing to make at least two commitments per goal

that your Institute leadership can embrace and/or implement as key contributions to our worldwide

collaboration?

□ I commit to actively follow-up, collaborate, and remain engaged on these issues. □ I commit to share the results of the Global Council with my fellow board members. □ I commit to follow up on the draft ideas listed below within the next 3 months Below, please write two specific ideas of how your Institute will support each of the strategic goals?

Capacity Building - The IIA Network will collaborate globally to expand the capacity of the profession.

1. 2.

Professionalism - The IIA Network will lead the profession through the development of timely and relevant research, global guidance, and career path guidelines.

1. 2.

Advocacy/IIA as leader – The IIA Network will raise the profile of and demand for the profession to ensure it is recognized as an indispensable resource by key stakeholders and recognized as a leading voice for internal auditing.

1. 2.

Sustainable Value – The IIA Network will generate sustainable value for members.

1. 2.

Institute: ________________________ Your Name(s): ______________________________________________