The rise of the audit specialist
As organizations face increasing levels of complex risks, the need for highly qualified specialists on internal audit teams has never been greater. Organizations understand that a one-size-fits-all approach to internal audit is not always the right answer. This shift has further opened the way for the audit specialist, whose role is to deal with the most difficult and technical risk areas of today.
What is an audit specialist?
An audit specialist specializes in a particular area, such as cybersecurity, information technology, sustainability, and more recently, AI. The audit specialist brings extensive technical knowledge and advanced skills related to their designated field, in contrast to the traditional internal auditor who may cover a wide range of business processes. The rise of the audit specialist is not a coincidence, as it is a direct response to the fact that risk domains are becoming more complicated and closely watched.
There are several factors that are causing this trend to spike. First, regulatory bodies around the world have made rules about data privacy, information security, and sustainability reporting stricter. For example, the EU’s Corporate Sustainability Reporting Directive and the updated standards from the IIA all demand a level of technical proficiency that generalists may not possess. Cybersecurity, in particular, has become of paramount importance. Because of the rise of ransomware, data breaches, and third-party risks, organizations need internal auditors who understand network architectures, encryption, incident response, and cyber frameworks like NIST and ISO 27001.
Audit specialists often have degrees in fields like computer science and certifications like Certified Information Systems Auditor (CISA), Certified Internal Auditor (CIA), or Certified Information Systems Security Professional (CISSP). They also stay up to date on new regulations and technologies. With this level of knowledge, they are more equipped to spot subtle risks, assess control effectiveness, and provide assurance that would not be possible with a more generalized background.
When to consider an audit generalist approach
If your organization faces a diverse range of risks or operates in a rapidly changing environment, it may be particularly advantageous to use audit generalists.
The value of audit generalists in diverse risk environments
Audit generalists are professionals with a broad base of knowledge across multiple business functions and risk areas. The generalist has greater flexibility because they can switch between operational audits, financial controls, and compliance reviews and evaluate emerging risks. Using generalists often works best in audit teams with limited resources or organizations where the risk environment is constantly changing.
Generalists are proficient at connecting different risk domains. They excel at finding system problems or process inefficiencies - looking at things from different angles - which a specialist with a narrower focus might miss. Generalists are often good at making connections across the organization and being trusted advisors who can turn complex audit results into practical recommendations for stakeholders who may be less technical.
Audit generalist vs. audit specialist: Understanding the trade-offs
Each approach has benefits as well as drawbacks. When you have an audit specialist on your team, you can be sure that the audits over these technical areas will be complete and more credible with regulators and senior management. On the other hand, too much specialization can create silos, limit knowledge sharing, and possibly make it more difficult to deal with new or unexpected risks that are not in their area of expertise.
On the other hand, audit generalists are flexible and cover a lot of ground, which is essential as organizations are facing more risks. But they might not have the technical know-how to evaluate very specialized domains like cybersecurity or ESG. In these cases, generalists might overlook critical vulnerabilities or misjudge the effectiveness of controls.
Advantages of specialization in internal audit
There are several benefits to specializing. Audit specialists are ready to handle audit areas that are becoming more technical, such as AI, IT security, data privacy, anti-money laundering, and sustainability. Their expertise allows them to look more closely at the related control environment and framework, compare them to industry best practices, and give management specific recommendations. In highly regulated industries, like healthcare or financial services, having audit specialists can help organizations demonstrate compliance, pass regulatory inspections, and avoid costly penalties.
Specialists also improve the reputation of the internal audit function with the board, audit committee, and external stakeholders. Stakeholders, management, and regulators may have more confidence in the audit process because the specialist can effectively speak the language of these technical areas.
Benefits of generalization for internal audit teams
Generalists add value because they are adaptable and know how to make the best use of the available resources. They are good at handling shifting priorities and filling in gaps as risk profiles change. In smaller organizations or audit teams with limited resources, generalists are often the core members of the team. They can look at risk interdependencies from a wide range of angles, identify new or unforeseen issues, and recommend improvements that will have an impact on more than one area of the organization.
Generalists are also essential for making plans for the future and developing teams. Because of their diverse audit backgrounds, they are great at serving as mentors for new team members, helping with cross-training initiatives, and taking on leadership roles when the organization needs change.
