As internal audit professionals, we are often recognized for many outstanding characteristics and skills that we bring to bear in executing our important role. We are lauded for independent organizational structures, personal objectivity, risk management and business acumen, and analytical skills. However, there is one attribute for which we are rarely praised: our ability to communicate effectively.

The recent white paper I co-authored on the attributes of highly successful chief audit executives (PDF) identified seven traits that are frequently observed in those who are the most effective leaders of internal audit organizations. One of the traits we discussed was “superior business acumen.” Based on questions I have received in the wake of presentations on the topic, I thought it might be useful to explore this topic further.

Wow! It’s hard to believe it has been almost a month since I have had a chance to blog. Believe me, it has not been because of an early vacation. On the contrary, summers (here in the northern hemisphere) are often the most hectic time at The IIA.

In my role as President and CEO of The IIA, I am always mindful that we stand on the shoulders of many great leaders who came before us. The Institute was founded by a group of visionary internal audit professionals almost 70 years ago, and it has never looked back. Today we embrace almost 170,000 members globally in 165 countries.

I am not sure if it is my imagination, but the topic of internal auditor independence seems to be picking up steam — especially outside of North America. In the past week, I have commented on the topic twice in my blog (Don’t Confuse Independence With Objectivity, and What Would It Take to Make You More Assertive?).

This week I am attending the Asian Confederation of Institutes of Internal Auditors (ACIIA) Conference in Sydney, Australia. It is always exciting and richly rewarding to participate in conferences that are as professionally organized and thought-provoking as this event. By combining the Southern Pacific and Asia Conference (SOPAC) with the annual ACIIA conference, IIA–Australia has managed to attract almost 1,000 professionals to this year’s event.

I recently attended an internal audit conference outside of North America. One of the keynote speakers delivered a presentation on what he thought was a very provocative theme. It was his assertion that internal auditors are not “independent,” thereby (he asserted) the very definition of internal auditing was flawed. He knew I was in the audience, and I believe he fully expected I would challenge his views as being inaccurate. In fact, his assertion that internal auditors are not independent is not provocative at all. The International Standards for the Professional Practice of Internal Auditing (Standards) does not assert that the internal auditor is independent. Often people confuse the organizational attribute of “independence” with the individual attribute of “objectivity,” which internal auditors are expected to maintain.

A few months ago, I noted in this blog that the worst seemed to be behind the internal audit profession. I based that assessment on some very early indicators that the impacts of the economic crisis were abating. Six months later, the indicators are stronger than ever that a recovery is underway.

I first noticed the faint drum beat around internal auditors reengaging on fraud about a year ago. In recent weeks, the drums have become almost deafening. For example, last week, the South Florida Chapters of The IIA and the Association of Certified Fraud Examiners held a joint full-day conference focused on fraud, and more than 230 local professionals turned out to participate. Later today, The IIA will host a one-hour webcast for North American members on “Taking Fraud Awareness to the Next Level: The Risk Universe, Technology, and Internal Audit’s Role.” More than 7,000 internal audit professionals have registered for the event — making it the largest single professional development event The IIA has ever hosted.

This week I have had the opportunity to visit Russia for the first time. After three days of meetings with senior government officials and chief audit executives of leading Russian companies, my optimism about the future economic development of this country in general, and IIA–Russia in particular, is very high!