It is sometimes suggested that the finest internal auditors are individuals who have actually invested time beyond the audit department and have observed exactly how different risk responsibilities work (external auditing, IT auditing, risk evaluation, compliance, tax auditing).
Taking on a qualifying, Inter-Organizational Transfer (IOT), whenever a new slot turns up, is one approach to discovering exactly how other divisions operate. This transfer can even act as a stepping-stone in going up the company ladder; however, most workplaces consider such transfers only beneficial for expanding an employee's skill-set or knowledge.
IOTs typically last between half-a-year to two years, and they occasionally require moving to a different department or abroad. IOT personnel may even work for a firm's client when receiving their professional industry expertise, which they can then carry back to the business organization when the assignment is finished.
What makes IOTs so valuable?
Well, for starters; most internal auditors who tackle IOTs, ultimately, enhance their job awareness and their performance. College-graduates believe that auditors must invest more time out in the “audit/risk” field to comprehend, wholly, the demanding tasks that individual departments encounter everyday. Understating exactly how risk works improves internal control efficiencies.
Learning how systems behave from start-to-finish will not only provide internal auditors with resources to foresee how internal departments get the job done, but it will also offer the auditor vital feedback on how these teams should be managed and how risks can be analyzed during the accounting year.
Why has IOTs changed over the years?
Simply put, global rescission has changed the ballgame; in today's economic environment, companies have reduced most of their IOT proposals, quoting expense worries and suspicions that workers may give notice once they acquire their newly-acquired talent and expertise. Therefore, business organizations are rethinking if whether or not IOTs are the best form of training for their environments.
Similarly, some smaller enterprises and tiny internal audit departments cannot support transferring staff members to other establishments or inter-office departments, since these employees are needed at home. With the existing economic climate, most internal-audit executives need all their personnel and resources nearby, which brings up the questions, how long should a IOT last, and how far away from the workplace can the employee sensibly relocate?
What do business risk when offering IOTs?
There are several considerations that organizations should think about before offering IOTs. Inter-department shifts can force workers to move away from their comfort zones; even though most IOT experiences improve a worker's self-confidence, the reverse can occur if the arrangement starts to head in the wrong direction.
Therefore, it's important that companies select IOT prospects with the appropriate skill-sets and keep in contact with them during the assignment to make sure all goes well. Also, IOTs can be extensive; updating the staff member regularly about what's taking place back at the home office will continue to make them feel a part of the audit team.
Lastly, there is a possibility that the IOT worker will like their new role so much that they will wind up leaving the audit department or the company altogether.
Today's IOT, and why this aged form of training still does the trick
After 2008, workplaces started to grant inter-organizational transfers only within the same business office facility, or offered IOTs just for assignment collaboration; thus, "the old days" of IOT(ing) staff members to the Johannesburg office for nine-months is now, practically, a trend of yesteryear.
Enter the modern-day "impromptu" IOT, which is a lot more budget-friendly and more efficient when company resources are strained. Today's IOT worker studies their skill-set and obtains their external knowledge close to the internal audit team, just in case these professionals are needed back in their departments.