Question

Task:
Here’s a list of the internal audit challenges that present threats to the profession or cause sleepless nights for some CAEs. While it’s hardly a comprehensive list, it includes some of the changes and trends that we internal auditors simply can’t 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 management—two groups that are not always aligned—and 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.

I have answer but are generally discuss the challenges facing international agencies in their daily activities. I want to improve the answer by getting a few points from specific articles that outline the challenges international agencies face due to the ever-changing business environment.
need more clarity for Overtaking process and Limited range.
provide examples for Lack of resources and Large and non-critical risks. So please help me.
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Evaluate the challenges faced by the internal auditors, as follows:
Auditors are fully responsible for conducting investigations if threats that are inconsistent with compliance with the fundamental principles (independence) are included. The internal auditors must also be reliable advisors and take some time to build confidence in your eligibility.
Technical knowledge:
In general, auditors have very limited knowledge of the system, as they are eligible for accounting, auditing and legal qualifications. Therefore, it is difficult to understand and ensure operations.
Overtaking process:
The outline can only be used to detect process overruns if the auditor is technically skilled in performing system audits.
Limited range:
The scope of internal auditors is often limited to be predetermined by management, which causes little room for expansion in the investigation and identification of fraud cases.
Lack of resources:
Employees and executives can access resources throughout the year, but auditors see only those resources that cannot provide sufficient access to understand the transaction in detail, with very limited access and only for a very limited time.
Large and non-critical risks:
The risks identified by the auditors can have minimal impact on management unless there is actually exposure or reporting of incidents. This reduces the results of the checker somewhat.
Cooperation and assistance by the company's senior management will help in recruiting a workforce with the necessary skills, and supporting auditors with training in the latest technological processes in addition to the constant awareness of adding value to the company's initiatives and achieving organizational goals.

Answer 1

Solution

Challenges faced by the internal auditors

• Internal auditors are part of the organisation. They are responsible to the management and act in accordance to the scope set by them.
• At times, internal auditors are directed not to audit a particular area as the managment would be aware of the issues in that area.Therefore, the auditor may not have power to investigate into any other matters he/she is suspicious about. This highly limits the range of audit coverage and several issues may remain undetected. It also affects auditor's independence.
• Also, being a part of the organisation, there may be instances wherein he/she may have to review the works done by him/her. Thus, the auditor's independence would be affected in such a scenario.
• Internal auditors may have a general knowledge rearding the accounting software that is used by the entity. But he/ she may not know the various features embedded in the software. Also, he or she may not have a direct access into the accounting records stored in the software. He/ she may have to highly depend on the employees or staff dealing with the software and it is highly possible that they provide the auditors only with summary reports rather that the complete details of the transaction. This highly limits the resources avilable for the audit.
• Internal auditors tend to focus more on quantifiable problems and issues. For example,they tend to ignore unhealthy corporate culture. An organisation's objectives will not be achieved with an unhealthy corporate culture. This is an example of a critical risk which could have a potential impact on the management and the organisation if it is not detected and reported to the mangement ( Example: Failure of Enron Corporation). Such matters affect the management's confidence on the internal auditor.
• Internal audit can be effectively done only when the process of accounting is completed. There may be situations where there would be a delay in the accounting of certain transactions due to which its audit would also be deferred. Timely detection of the issues would not be possible under such a scenario.
• An internal audit involves audit of the entire business process. Therefore it requires immense knowledge and expertise. Internal auditors need not be highly qualified professionals. In such a scenario, the auditor may find it difficult to draw appropriate conclusions in areas where he/she lacks experience and knowledge.
• Highly sophisticated technologies are used by the entities now a days. Therefore, even though the auditor may be a highly qualified professional, he may not have an expertise in the field of Information Technology. Genenal awareness regarding the technology used by the entity would not be sufficient for the conduct of audit even though the auditor is skilled in performing the system audits. He/she is expected to have a complete knowledge about the technology/ softwares used by the organisation.

Therefore the internal auditors are required to adapt to the changes in the business environment and keep themselves updated with the new developments. They are required to conduct the internal audit with independence and facilitate the management in achieving the objectives of the organisations with relevant findings and recommendations.