The relationship between the organizational strategy and the internal audit scope and role: A qualitative research.

Past years, the business environment has changed rapidly with the emergence of new technologies. It has influenced the organizations’ strategic vision and the way they implement it internally. Based on an interpretive approach, this research aims at deeply understanding the relationship between the organizational strategy and the internal audit function. Besides, it investigates also which strategic factors that could influence internal audit scope and role. We conducted a qualitative research based on nineteen semi-structured interviews of Chief Audit Executives and members of management committees based in Belgium and in the United Stated of America. It emerges from the analysis of the interviews that the current changing environment and the digitization of it appear to affect the internal audit function. First, it impacts the flexibility required by the internal audit function to stay aligned to strategic shifts and goals. Second, the necessary skills of internal auditors are increasingly oriented towards IT skills. Third, the demand towards the internal audit function for consulting and advisory activities have increased and are considered to add value in this changing context. Nevertheless, the increasing demand for consulting services appears to represent a bigger challenge for internal auditors to maintain their independence. This research extends the internal audit literature by examining the strategic determinants influencing the internal audit scope and role, especially the importance of digitalization in the evolution of internal auditors’ role and competencies. This research also brings managerial implications by pointing out the required competences of internal auditors to face changes in the strategy of the organization in the current business environment. Competencies in data analytics and cyber security appear to become key in order to reinforce the added value of the IAF.