Internal Audit - Dynamic Profession & Heart of Technology

The chocolaty profession, technological, money oriented, future stable, today fuel of organization, tomorrow economy AI is nothing but Internal Audit. Technology - Not the High Tech, Low Tech but just the Right Tech.

What is internal audit?

Internal audit is a dynamic profession involved in helping organizations achieves their objectives. It is concerned with evaluating and improving the effectiveness of risk management, control and governance processes in an organization.

Why is Internal Audit most vulnerable today?

• Emerging Risk
• Disruptive Technology
• Board Expectation

What is the answer of triple threat given above?

Focusing on Agility

Two third of CAE see Agility as very or extremely instrument in the future, but internal audit is vulnerable by not addressing it now. Agile auditing requires:-

1. Change in mindset
2. Right focus
3. Flexible process.

Innovation

Only 13% strongly agree, 56% somewhat agree and rest strongly disagree their internal audit functions are quick to adopt new technologies.

The path to innovation include:-

1. Self Assessment
2. Challenging the status quo
3. Embracing technology advancement

Talent

72% CAE believe still they have talent gap to fill. As per CAE 76% extremely desirable, 22% somewhat and 2% not desirable candidates with accounting and finance back grounds. Top 3 skills needs are:-

1. Analytical/critical thinking
2. Communication
3. Business Acumen

Engagement with the board

Ultimately internal audits transformation must be supported by board. Especially 38% strongly agree with the audit committee regularly communicates with the CAE about performance and improvement. The key to build stronger engagement with the board. Now is the time for action. Confront the issues or become irrelevant.

Chocolates doesn't ask questions chocolates understand

7 signs you might be Jurassic Auditor:-

• You obsess over the past (hindsight), at present or year later believe focus on insights, but in future must provide foresight.
• You build audit plans based on cycles, rather than risks.
• You develop an annual audit plan and stick to it all years; audit should be done at speed of risk.
• You avoid using technology. Example Data Analytics use for serious management, maintaining effectiveness and efficiency of audit.
• You avoid auditing technology i.e. avoiding audit. Technology risk i.e. cyber security, cloud computing are most significant risk, ignoring same internal auditor have no stand in world.
• You enjoy writing about the condition more than recommendations; include cause, effect and recommendation.
• You still call audit clients 'Auditees' Don't scope to some extent, move to organization sake and for all world.

The world as we have created it is a process of our thinking. It cannot be changed without changing our thinking.- Albert Einstein

Five essentials for meeting of internal auditor:-

• Define the meeting objectives, output and outcomes.
• Does your home work?
• Developed a sufficiently detailed agenda
• Send the agenda & pre read materials well in advance.
• Reschedule a meeting if you are not ready.

There are risks & costs to a program of action. But they are less than the long range risks and cost of comfortable inaction.

Lastly I would share my personal view on % application on audit

• Organization Learning 75%
• Industry 15%
• Others (SA, AS, ALA etc) 10%

Internal audit is the discipline can be utilize within any industry or organization, potential will be stretched and by that growth & opportunities. Helps in harnessing ABCD technology i.e. Artificial Intelligence, Block chain, Cyber Security and Data Analytics.

If you have earns a single learning from this article have a chocolate from your side and have a robotic journey. Thank you.