Task Internal Audit Must Embrace Change or Sink Like a Stone On March 21, 2019 By Jason Mefford Heres a list of the internal audit challenges that present threats to the profession or cause sleepless nights for some CAEs. While its hardly a comprehensive list, it includes some of the changes and trends that we internal auditors simply cant ignore. Speed of Technology: Changing business models from technological advances are disrupting traditional organizations and just may be the existential threat to internal audit. Deeper knowledge and skills related to new technology used throughout the organization are needed, as well as understanding and adoption of technology tools for performing audits, such as robotic process automation (RPA), artificial intelligence (AI), and advanced analytics. As Karl Stingily, CAE of Caesars Entertainment said, every auditor needs to have a basic understanding of IT, as it is embedded in every audit that we perform. Cybersecurity: Cybersecurity is a critical issue for nearly all boards and senior managers, and, whether you know it or not, they are looking to internal audit to make sure everything is OK. Since cybersecurity is such a broad topic, and little direction is given on what internal audit is expected to do, scoping engagements is difficult. Downgrades to the CAE Position: Some organizations are pushing down the CAE position from vice-president to director or from director to manager, leaving internal audit to report lower in the organizational hierarchy. This is bad news if internal audit is to maintain influence in the organization. This harsh reality increases the need for internal audit to demonstrate value to senior management and the board, audit what matters most, and simply make the case for internal audit by achieving more wins. More Specialization: Increased technical and business skills are needed in internal audit, leading to the death of the general auditor. Internal audit departments will likely see more experienced, technically savvy auditors making up most of the department. Serving Two Masters: Internal audit has always had some challenge serving both the board and senior managementtwo groups that are not always alignedand pull internal audit in different directions. The challenges around independence are real. Talent Acquisition: Finding enough people to fill open positions and finding people with the right skills is a challenge in the current tight job market and could be for some time. CAEs will need to be more creative, looking for candidates with non-traditional audit backgrounds and relying more on guest auditors to fill the gaps. Talent Development: Training current employees in technical and soft-skills is a constant challenge for CAEs. And soft-skills, such as communication and emotional intelligence, are more important than ever. Auditors who can do the work, but have difficulty communicating the results, will find themselves out of a job. Constant Justification: Nobody seems to care that last year you saved the organization millions of dollars. The what have you done for me lately? mentality requires CAEs to constantly justify their value to the organization, some of which is cost and risk avoidance that is difficult to calculate and quantify to the chief financial officer. Yet CAEs will need to prove return on investment to the organization or risk getting outsourced. Sarbanes-Oxley: Immediately after the passage of the Sarbanes-Oxley Act (SOX) internal audit spent an inordinate amount of time doing lower-level work around SOX compliance. Over time, some of that work transitioned to others in the organization, but new requirements from the PCAOB, which have led to shifting expectations of the board and senior management, means internal audit is being pulled back, kicking and screaming, into SOX compliance work. Jason Mefford, 21 March 2019, Internal Audit Must Embrace Change or Sink Like a Stone, Internal Audit 360, viewed 23 March 2019, https://internalaudit360.com/internal-audit-must- embrace-change-or-sink-like-a-stone/ .......................................... 1. Above article is about the changes and trends that are challenges encountered by internal auditors. You are required to critically evaluate the challenges faced by internal auditors.(Word limit 700 words) and please support your answer by quoting practical instances. Please