Issues that will Impact Internal Auditing in the 21st Century Synopsis The speed of change in the last 70 years has been fast: ‘   imagine what further changes await us in the next 70.’ Cutting edge internal auditing must always look into the future.

Discussed are a number of factors to be considered when doing so – perception, professionalism, the nature of its work, globalization, sustainability, social responsibility, risk management, multiculturalism, regulation, knowledge and technology. All are considered with their implications for future internal auditing.

Contributed by Lal Balkaran, MBA, FCMA, FCIS. CIA, CGA, based on his paper, delivered at The IIA–Toronto 60th Anniversary celebration at the Royal York Hotel, Toronto, Canada, on 19 May 2004. Lal Balkaran is a Past President of the Institute of Internal Auditors, Toronto and sits on the Board of Research and Education Advisers and the Editorial Advisory Board of the Global Institute of Internal Auditors in Orlando. He also sits on the Internal Audit Advisory Committee of the Government of Canada in Ottawa. Mr Balkaran has authored six reference books on business and five non-business books and has had articles published on internal auditing and on other subjects in various periodicals across the globe. He published the world’s first dictionary of auditing titled A Practical Guide to Auditing and Related Terms (LexisNexis:

Toronto, 2003).

After Reading the Case Study Consider:

1. How well do the 21st century predictions by Lal Balkaran relate to and support the cutting edge theme and chapter contents of this book?

2. Does the term ‘value-added’ used in the case study mean the same as ‘cutting edge’?

3. Does your internal auditing ‘   understand foreign languages, different cultures, political economies, and the nature of economic output   ’ across the world?

4. Are the qualifications and certifications you require your internal audit staff to achieve international and at the cutting edge of knowledge?

5. How well does your internal auditing understand the new International Financial Reporting Standards?
6. Is the focus, knowledge, perception and organization of your internal auditing at the cutting edge of adding value in your organization tomorrow?