Some may go all in with a full transformation, while others may adopt a more iterative approach depending on industry regulations, the complexity and needs of the business and how quickly the larger enterprise is changing.
In all cases, transformation takes time and should be guided by a formal transformation plan and road map that provides direction, purpose and key tangible building blocks.
The bottom line: For the internal audit function, avoiding change is not an option. Transforming itself is not only what the business needs, it’s crucial to the function’s contribution to the enterprise, not to mention its continuing relevance to the business.
There are 5.9 million businesses in corporate America employing 127 million people. Estimates predict 40% of jobs could be affected by automation in the next 10 years. The balance of jobs will significantly change in nature, requiring new skill sets.
Imagine a world in which internal audit and other risk management functions stop using traditional approaches to audit or monitor a business area. Taking a sample-sized approach is a thing of the past. Instead, internal auditors leverage data and digital capabilities to smartly audit process areas, uncovering trends and patterns that previously would have been impossible to find. Imagine that Internal Audit can effectively answer business’s question, “Can you tell me something I don’t know?”
Identify blind spots, previously humanly impossible
Collaborate with other lines of defense to create a consolidated view of risks and use a common risk language
Provide greater coverage without increasing audit resources
Conduct audits with surgical precision
Uncover human behavioral patterns through machine learning and regression
Influence the strengthening of first- and second-line defenses through digital collaboration and continuous monitoring
Every stage of the internal audit lifecycle is impacted. The internal audit is evolving both operationally and strategically, by:
