By Daniel QUIANOO
In today’s rapidly changing educational landscape, universities face a multitude of challenges, including technological advancements, stringent regulatory requirements, and complex global operations. To effectively navigate these complexities, it is imperative for university internal audit functions to transition from traditional accounting-centric teams to units enriched with diverse expertise. This evolution is crucial for addressing the multifaceted risks and challenges inherent in higher education institutions (Institute of Internal Auditors [IIA], 2023).
The Gap in the Study
The internal audit function in Ghanaian universities has traditionally focused on financial oversight, primarily ensuring compliance with budgetary controls and financial reporting standards. However, with increasing cybersecurity threats, data privacy concerns, operational inefficiencies, and reputational risks, internal audit teams must evolve to remain relevant. Existing studies on internal audit modernization have largely focused on corporate institutions and public-sector organizations, with limited research examining the specific challenges faced by universities in Ghana (Deloitte, 2022). This study, therefore, seeks to bridge this gap by exploring the need for diversified expertise within internal audit functions in Ghanaian universities.
The Imperative for a Diverse Expertise Portfolio
Historically, internal audit in universities has been confined to financial risk assessment. However, contemporary institutions face a broader spectrum of risks, including technological vulnerabilities, regulatory compliance issues, and strategic misalignments (ResearchGate, 2021). A homogeneous audit team, while proficient in conventional auditing practices, may lack the specialized knowledge required to assess and mitigate these diverse risks effectively (AAAHQ, 2020).
Beyond technical proficiency, a diverse audit team fosters agility and adaptability, enabling universities to respond proactively to emerging challenges. Diversity stimulates innovation, as different perspectives challenge conventional methods, leading to more creative auditing solutions. Furthermore, a well-rounded audit function enhances stakeholder confidence, reinforcing trust in the institution’s governance and risk management practices. Internal audit functions have a pivotal role in promoting diversity, equity, and inclusion (DEI) within organizations, contributing to a culture of belonging and fairness (IIA, 2023).
Essential Components of a Modern Expertise Portfolio
To modernize internal audit functions, universities should integrate expertise beyond traditional accounting, incorporating fields such as information technology, legal compliance, operations, data analytics, project management, and human resources. This multidisciplinary approach ensures a comprehensive risk-based strategy, allowing internal audit to provide valuable insights beyond financial reporting (Barclay Simpson, 2023).
In addition to technical skills, fundamental competencies such as critical thinking, problem-solving, communication, ethical integrity, and collaboration are vital for effective internal auditing. Auditors must be able to analyze data, make sound decisions, and effectively communicate findings to diverse stakeholders. Developing these core skills enhances the overall impact of the audit function on institutional governance. To foster continuous professional growth, universities should invest in ongoing training, leadership development, and cross-training programs. Establishing a collaborative culture through team-based projects, mentorship programs, and cross-functional teams promotes knowledge-sharing and enhances the collective expertise of the audit function (IIA, 2022).
Moreover, universities should adopt flexible staffing models, combining full-time staff, part-time consultants, and external specialists to access required expertise. Implementing a performance measurement framework ensures that both individual and team contributions are recognized, using a mix of quantitative (e.g., number of audits completed) and qualitative (e.g., audit quality) metrics to evaluate effectiveness. These strategies future-proof the internal audit function, making it more adaptive, insightful, and value-driven (Deloitte, 2023).
A Practical Roadmap for Modernizing University Internal Audit Functions
1. Conduct a Comprehensive Skills Gap Analysis: Evaluate the current team’s competencies to identify areas needing enhancement. Methods such as surveys, interviews, and reviews of existing audit plans and reports can effectively uncover these gaps. Understanding the present skill set allows universities to strategically plan to address deficiencies and bolster their audit capabilities (Deloitte, 2022).
2. Develop a Strategic Workforce Plan: Detail approaches to acquiring, developing, and retaining talent aligned with both current and future institutional needs. Setting clear goals, establishing timelines, and considering budgetary constraints are vital components. Such a plan ensures that the internal audit function remains agile and equipped to handle evolving challenges (IIA, 2023).
3. Refine Recruitment Strategies: Broaden recruitment efforts to attract professionals with diverse backgrounds and specialized skills. Utilizing specialized job boards, attending industry conferences, and partnering with academic institutions can aid in this endeavor. Concurrently, investing in robust training and development programs for existing staff addresses identified skills gaps, encompassing both technical training and fundamental competencies to ensure a well-rounded team (Barclay Simpson, 2023).
4. Foster a Collaborative Culture: Encourage collaboration, knowledge sharing, and the embrace of diverse perspectives within the organization. This requires leadership commitment and a willingness to challenge traditional practices. Implementing flexible staffing structures, such as engaging consultants and contractors, provides access to specialized expertise as needed (IIA, 2022).
5. Measure and Evaluate Progress: Regularly track key metrics, including team diversity, audit quality, and stakeholder satisfaction, to assess the success of modernization efforts and inform necessary adjustments (Deloitte, 2023).
Conclusion: A Strategic Imperative for the Future
Modernizing a university’s internal audit function by cultivating a diverse expertise portfolio is a strategic imperative for institutions seeking to navigate the complexities of the modern educational environment. By investing in talent, fostering a collaborative culture, and leveraging technology, universities can build a world-class internal audit function that provides valuable assurance, enhances governance, and contributes to institutional success.
This transformation requires a fundamental shift in mindset and a commitment to building a truly diverse and inclusive workforce, ensuring that internal audit functions are not only reactive to current challenges but also proactive in anticipating future risks and opportunities.
References
• AAAHQ. (2020). A Study of Diversity and Performance in Internal Audit. Retrieved from https://publications.aaahq.org/jiar/article/23/3/149/12526
• Barclay Simpson. (2023). Internal Audit Priorities: Diversity & Inclusion. Retrieved from https://www.barclaysimpson.com/internal-audit-priorities-diversity-inclusion
• Deloitte. (2022). Assessing Internal Audit Competency Gaps. Retrieved from https://www2.deloitte.com/us/en/pages/advisory/articles/assessing-internal-audit-competency.html
• Deloitte. (2023). Future of Internal Audit in Higher Education. Retrieved from https://www2.deloitte.com/global/en/pages/public-sector/articles/future-of-internal-audit-higher-education.html
• IIA. (2022). Internal Audit Competency Framework. Retrieved from https://www.theiia.org/en/content/research/foundation/2022
• IIA. (2023). Enhancing Internal Audit Through Diversity and Innovation. Retrieved from https://www.theiia.org/en/content/research/2023/enhancing-internal-audit-diversity
• ResearchGate. (2021). Internal Auditor Competency Gaps: Perception of Students, Academics, and Practitioners. Retrieved from https://www.researchgate.net/publication/368745379
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