At the core, IT internal auditing is innovation.
This year, various internal audit leaders are coming up with trends that will change the auditing industry. The changes will be such that it can stay compatible with the needs of a business. Leaders from all around the world are determined to bring about these transformations to make businesses safer while they prosper in their niches.
We’ve listed down 8 internal audit trends to help you plan your internal audit activities for the year. Audit groups across all industries have already considered these steps to increase their organisation’s influence on people and the impact they could have on their stakeholders.
Your business will need to implement, if not all, at least a few of these trends to make sure that you stay ahead in the game.
Check out the Auditing Trends for 2019!
-
Assessing Risk Regularly
Formulating a plan to invest resources where they are needed the most becomes easier when risks are tracked, evaluated, and monitored in an uninterrupted manner.
Real-time Tracking: This can be achieved by real-time tracking which has been made possible through the advancement in technology. The outputs you receive from these risks should be able to help you determine the steps that need to be taken to improve the security system of your business.
-
Agility in Audits
Once audit teams go agile, the changes in returning to traditional methods are impossible due to the benefits it has to offer.
“With agility, your auditors can figure out what your stakeholders want or don’t want. “
This quick communication shows results faster. The results of audits are closely related to stakeholders and the business.
-
Cybersecurity
Prevention and Cure go hand in hand.
Each business is prone to not only external threats but internal threats too.
It becomes essential in such cases that all the bases are covered and a proper cybersecurity team sets up the framework to be followed in case a risk comes too close to affecting the business adversely.
You may include restricted access, evaluating risks, cloud security, protecting confidential information, etc.
-
GDPR Consultation
The guidelines set by the European Union’s General Data Protection Regulation program, suggest that the regulator must formulate tailor-made plans that will protect all the data processed by your business.
GDPR pays close attention to the repercussions of risks that could affect businesses and individuals.
SAP systems will become more secure by including GDPR in your internal auditing plans.
-
Effects on Working Environment
With internal auditing, changes can be made in how the management works, what messages it sends down to its employees, the security systems that employees work with, performance evaluation, etc.
For many organisations, a particular type of culture might not work. In such cases, auditors formulate specific cultural format that works in perfect harmony with the needs of the business.
-
RPA (Robotic Process Automation) and CI (Cognitive Intelligence)
Both these trends have been accepted by various businesses.
They saw a tremendous change in terms of covering audits extensively, boosting the capacity, enhancing the quality of audits, establishing an efficient working system, etc.
Systematic Approach: Internal audit systems have changed by leaps and bounds by incorporating RPA and CI into their infrastructure. A more systematic approach to problems is possible with applied machine learning.
-
Moving to S/4
It might seem like the need to shift to S/4 is a deal that doesn’t require your attention now, but the migration would take years to complete.
Free from Chaos: Your business should be risk-free, and the responsibilities of personnel should be re-established to suit the new working environment to avoid any form of chaos or confusion.
The automation that comes with S/4 will let you test if the roles assigned to the workforce would really work or fail.
-
Integrated Risk Assurance
Your business would have drivers of value, right?
Integrated risk assurance makes sure it coordinates the activities of the drivers of value. It shows a clear path as to what are the risks and how well your risk management plans will work.
Boost the efficiency of work: Investing in integrated risk assurance will show outcomes that are far more reliable, better return of investment, improved strategy formulations, etc.
With more such trends flooding the market, for a business to not take advantage of these internal auditing methods, could only prove to be risky at the end of the day.
Anticipating the risk and taking care of it before it can reach stakeholders, should be the ultimate goal of an organisation.
The main impediments to Internal Audit making more rapid progress through innovation are limitations born of legacy mindsets. Chief Audit Executives, other Internal Audit leaders, senior management and audit committees must work to change mindsets in their functions and organizations—and, often, within themselves. The evolving nature of Internal Audit work lends itself to new methods enabled by new technologies and new ways of working with stakeholders.
2018 saw massive breaches in security for many businesses, changing the way confidential information was stored and used. Most of the trends mentioned above will have much impact this year, and in the coming years, that it will have a long-lasting effect on the internal auditing field.
At Kreston OPR, our dedicated team of professionals shall engage with you, assess, analyze to deliver solutions that would at times reinvent and at times bring about a difference to your world. Our team of experienced auditors ensure that we add value to your business. We evaluate Risk Management Plans for many companies worldwide.
