Cultivating Internal Audit Transformation: From Assurance to Impact at the National Bank of Ukraine

Keynote on Internal Audit Transformation

Dr. Rainer Lenz recently addressed the Strategic Meeting of the Internal Audit Function at the National Bank of Ukraine, delivering a keynote titled "Cultivating Internal Audit Transformation: From Assurance to Impact." This presentation underscored the evolving role of internal audit, moving beyond its conventional assurance responsibilities to embrace a more dynamic and impactful function within organizations. The core message revolved around three pivotal ideas designed to guide internal audit professionals in their journey toward greater strategic relevance.

Expanding the Internal Audit Repertoire

Lenz's first key idea, "Governance is never done – it needs gardening," metaphorically highlights the continuous and nurturing effort required for effective governance. This suggests that internal audit's role is not merely to check boxes but to actively cultivate and improve the organizational environment. The second idea, "Internal Audit transformation means expanding the repertoire: Assure. Consult. Build.," directly challenges the traditional scope of internal audit. It advocates for a broader engagement where auditors not only provide assurance but also offer valuable consulting services and actively contribute to building stronger organizational processes and controls. This expansion positions internal audit as a proactive partner in organizational development rather than solely a reactive oversight function.

The Human Element in the Age of AI

Perhaps the most compelling aspect of Lenz's keynote was his third idea: "In the age of AI, what remains uniquely human becomes the true differentiator: authenticity, empathy, courage, collaboration, and relational intelligence." As technology, particularly AI, automates many routine tasks, the distinct human qualities become paramount for internal auditors. Lenz posits that relational intelligence (RQ), alongside IQ and EQ, is crucial for fostering effective collaboration and building trust, which are essential for internal audit's success. He also highlighted the National Bank of Ukraine's internal audit acronym, A.U.D.I.T. (Assurance. Understanding. Dialogue. Insight. Transformation.), with a particular emphasis on "Dialogue," reinforcing the importance of communication and human interaction in the audit process.

Implications for Audit Professionals

For internal audit and assurance professionals, Lenz's insights offer a roadmap for future-proofing their careers and enhancing their department's value. By embracing a more consultative and collaborative approach, focusing on human-centric skills, and continuously nurturing governance, internal auditors can transition from being perceived as mere compliance checkers to indispensable strategic partners. The emphasis on relational intelligence and dialogue suggests that investing in soft skills and fostering strong interpersonal relationships will be as critical as technical expertise in the evolving landscape of internal audit.