The document summarizes the evolution of internal auditing from the 1980s to present day and envisions its future. It describes how internal auditing transitioned from a passive, control-focused role examining financial records to an active, strategic advisory function ensuring proper controls, compliance, and fraud prevention in increasingly complex modern businesses. The document also notes how internal auditors have become trusted advisors with a holistic view of operations, and how the profession has attracted people from diverse backgrounds. Looking ahead, it envisions internal auditing helping balance economic growth with environmental sustainability and social responsibility.

1. THE RISE OF
INTERNAL AUDIT
PARTH DAVE
B.Com, FCA, CISA, CIA, CRMA

2. The RISE OF INTERNAL AUDIT
I am proud to be part of this fraternity and it’s exciting to listen story from the mouth of the
horse – It’s like Jaffrey Archer is telling story about his detective novel, Pierce Brosnan (007)
is telling story about making of Golden eye…….
Why is it so special about it????? Because they are the one who has thrilled about it and has
360⁰ experienced about it and that you can experience in their sharing also with their
expression, punctuations, emotions as compared to a person who has read the story or seen
the movie.
I am sure it would be interesting for members also to see internal audit differently. Many
times we get criticism of being theoretical & impractical in carrying out our duties, so let’s
see practical side of life of Ia (internal auditor)……….
Being internal auditor, before beginning my journey how can I forget to give disclaimer that
please don’t wear your glasses of professionals in this presentation to find mismatch
between your knowledge of world and my knowledge of world. Intention as mentioned in
the title is more to share story from the mouth of internal auditor about internal audit and
not to audit the presentation, which typically back of the mind happens usually for internal
auditor, so my fellow members, …..seat back, relax, enjoy & cherish your past memories.

3. Now
Then
Future
THEN, NOW & FUTURE…..

4. THEN…….
In late 80s and early 90s the world was different. We are calling it as Retro style with bell
bottom pants, Elvis Presley styles haircuts, audio cassette players and certainly we were also
in Retro mode at that time. Profession was emerging from the clouds, when it wasn’t known
and preferred career destination. Perhaps only big empires were only hiring it and objective
was more control oriented. Sample checking, physical verification, books of accounts, trial
balance etc. were routines, followed by report on paper. Perhaps it was much centered on
financials & reporting areas. In my eyes at that time, people & business wasn’t so much
greedy behind economic goals. Life surrounding us were having time for personal life &
family.

5. THEN…….
Then time came in late 90s & end of 20th Century. Millennium change, globalization
were buzz word at that time. Bill gates & technology experts were busy on teaching
to computer how to read 1999 + 1 = 2000. Many of controls were surrounding how
successfully system adopts this change from 1999 to 2000. IT (Information
Technology) was around business to help business in data gathering, storing and
using it in faster way. For us, life was slowly changing since business complexity was
increasing. Earlier practices and scope of internal audit wasn’t enough to help
business in getting satisfaction on existence of controls & sustainability of business.

6. OUR SCOPE EXPANDED FROM A SIMPLE AUDITOR TO A HELPING HAND TO THE
BUSINESS, WHO CAN RELY ON AN INDEPENDENT PERSON TO SEE HOW OPERATIONS
ARE WORKING, WHETHER MEETING BUSINESS, LEGAL, ECONOMIC STANDARDS OR NOT.
NOW BY THIS TIME, SLOWLY PRESSURES WAS ON RISE IN ECONOMY, WORK & LIFE.
AWARENESS AND DEMAND FOR OUR PROFESSION WAS ON RISE. STILL INTERNAL AUDIT
WAS A SUPPORT FUNCTION. ON PERSONAL SIDE, STILL PERSON WAS ABLE TO GO
HOME AND TAKE DINNER WITH FAMILY HAPPILY.

7. NOW………….
Oh my god……… then race of economy, globalization, profit, numbers, and
success has started growing exponentially in 21st century. Human & business
greed has started shaping world on fast track. Need for more, new, innovations,
creativity are buzz word. Certainly there is negative side of this development
also. Major turnaround in my profession I can recall was the time around
collapse of energy behemoth Enron and emergence of SOX. IT has taken charge
of the business and now business is much surrounding IT. Complexity of
business, processes, economy, IT, legal & regulatory requirements increased so
much and that has made our current Avatar of Internal Auditor - from helping
hand independent person to a must needed professional & trusted advisor.

8. NOW………..
In these days buzz words in our fraternity
is IT & process controls, Segregation of
Duties, Continuous improvement,
Compliance, Assurance, Fraud Detection &
Mitigation, Change management etc.
Today internal audit is no more a support
function. We are as good as business man.
I can say perhaps internal auditor would be
the best person who has 360⁰ view of the
business. He is like sitting on the tower and
can see how business is operated down.
Earlier mostly finance professionals were
part of this profession but today people
from all fraternities are part of this
profession.
Click on the globe to start

9. “Personally it’s quite exciting to recollect the transition & rise of
internal audit from passive role to active role in business.!”
~ Parth Dave
NOW……. Today’s best practices includes thinking
internal audit as strategic business unit
where they can develop talent and then
people can take higher roles or special roles
in the organization. It’s not surprising where
now from internal audit, people are taking
roles in operations, finance and many other
important positions in the organization.

10. FUTURE………..
This global development has benefitted everyone,
but always benefit has cost to pay. Personally, I
believe in balancing, work life & personal life.
Time to time, I referred about changes that has
happened in personal life of every one and so of
ours also. In this developing and fast growing life,
change in life is evident by increased work
pressures, ever changing challenges in work &
business environment, more & more time behind
work, scarcity of time for life & family, increased
health hazards and many other things that you
are already experiencing in today’s life.
Work
LifeFamily

11. FUTURE…………..
Nevertheless, by virtue of history of development &
professional zeal of continuous improvement, I believe
time will come when perhaps current business & life
goals surrounded by economic development will
transform into better living, making earth good place to
live, usage of renewable energy & resources, social
responsibility above economic goals, being human etc.

12. CONCLUSION………….
Let me end this journey with the proud feeling of being
internal auditor and part of this ever changing profession
which has not only led me to assess business deliverables but
also personal deliverables towards my life, family, society,
profession etc.

13. THANKS………..
Let’s wish that our children can enjoy the same resources
and beauty that we have for generations.