Elevating internal audit’s role: The digitally fit function

15 May 2019 | Business

Organisations are rapidly rolling out digital initiatives in an arena defined by more data, more automation, sophisticated cyber attacks, and constantly evolving customer expectations.

In some ways – for internal audit functions – the situation is not new: Technology risks and controls have already been on their agendas for decades, and most can reliably deliver a technology audit.

Our 2019 Global Risk, Internal Audit and Compliance Survey of 2 000 executives (half in risk functions) shows that as organisations move through digital transformation, internal audit functions that are more digitally fit more effectively help their stakeholders make better decisions, and take smarter risks in the face of changing risk profiles.

But (1) what does digital fitness mean and, (2) what can internal audit functions focus on to become more digitally fit?

(1)The definition is twofold:

( a) Having in place the skills and competencies to provide strategic advice to stakeholders and to provide assurance with regard to risks from the organisation’s digital transformation, and

(b) Changing the function’s own processes and services as to become more data driven and digitally enabled so the function can align with the organisation’s strategic risks and thereby anticipate to respond to risk events at the pace and scale that the organisation’s digital transformation requires.

(2) As part of our survey we have shared the following 6 ways for internal audit functions to advance in their digital fitness:

(i) Assess your internal audit function’s current staff in the context of the organisation’s overall digital strategy. Consider ways to jump start your journey by taking advantage of resources in other parts of the organisation, and/or through third party partnerships, including co-sourcing.

(ii) Collaborate with the other lines of defense to help the organisation develop a common digital governance platform that will make sure that digital technologies get developed consistently and contain safeguards. When such frameworks don’t exist, consider the risk to the organisation.

(iii) Consider building an ongoing data governance audit into the audit plan in order to provide assurance with regard to the organisation’s data, which is critical to achieving the ongoing success of many of the emerging digital technologies.

(iv) Follow a consistent framework to identify and evaluate activities throughout the internal audit life cycle with a view to finding the best candidates for automation (e.g. areas with a large population).

(v) Align with other lines of defense to develop a common point of view on risks and rethink the traditional risk assessment in order to recognise the importance of risk velocity.

(vi) Identify new data-driven and technology driven capabilities and service offerings – such as continuous auditing of critical controls – in order to monitor high-risk areas in real time.

Birgit de Lange is an associate director: risk assurance services at PwC Namibia. Contact her at [email protected]

Similar News

 

Business ponders mass exodus

2 days ago - 24 May 2019 | Business

A recent survey by the Economic Policy Research Association (EPRA) of close to 600 businesses concerned about the government's policy direction shows that a staggering...

MTC kickstarts NSX listing process

2 days ago - 23 May 2019 | Business

MTC issued a statement this morning saying it “has officially started its journey towards listing on the Namibian Stock Exchange”.MTC will be the first state-owned...

Mexican billionaire buys Erindi

3 days ago - 22 May 2019 | Business

Mexican billionaire Alberto Baillères is set to buy the sought-after 71 000-hectare Erindi Game Reserve, subject to approval. According to a media release, Baillères is...

Bidvest Nam to delist from NSX

4 days ago - 21 May 2019 | Business

Bidvest Namibia will delist from the Namibian Stock Exchange (NSX) on 11 June, the company said in an announcement on the local bourse.This follows a...

Namport fires 86 employees

6 days ago - 20 May 2019 | Business

Leandrea Louw Namport has dismissed 86 container terminal workers who were involved in an illegal strike in August last year.Namport acting CEO Kavin Harry explained...

Debmarine to spend N$7bn on new vessel

1 week ago - 17 May 2019 | Business

Debmarine has announced that it will invest N$7 billion in a new vessel, which would contribute N$2 billion a year to the economy.The diamond miner...

Governmentpolicy causes economic decline

1 week ago - 17 May 2019 | Business

Local businesses burdened with a crushingly tough economic climate feel the government's policies have contributed to the current climate, particularly legislation aimed at empowerment and...

Phosphate mining headache continues

1 week ago - 16 May 2019 | Business

ELLANIE SMIT The Chamber of Mines of Namibia is concerned that a way forward on marine phosphate...

Save jobs, buy local

1 week ago - 16 May 2019 | Business

Team Namibia has urged Namibians “now more than ever” to buy local in order to have a positive impact on the economy, reduce poverty and...

Mining: Sunrise, sunset?

1 week ago - 15 May 2019 | Business

Jo-Maré Duddy - Namibia’s mining sector needs policies which will transform the sector from a perceived “sunset” industry to a “sunrise” industry.This will allow investment...

Latest News

10% water hike coming

2 days ago - 24 May 2019 | Disasters

The City of Windhoek has proposed a 10% water and 5% sewer tariff hike to come into effect in July. The City's recently announced...

Low earners excluded from drought...

2 days ago - 24 May 2019 | Disasters

Households with a combined income of more than N$2 600 will not qualify for state drought assistance, which has effectively excluded even low-level civil servants...

How did we get here?

2 days ago - 24 May 2019 | Opinion

How did we get to a situation, as a country, where our government is asking already struggling workers to donate 2% of the salaries as...

AMTA ends Fysal agreement

2 days ago - 24 May 2019 | Agriculture

Fysal Fresh Produce is to retrench 60 employees at the end of this month after its contract with the Agro-Marketing Trading Agency (AMTA) was terminated....

Geingob grills Nanso

2 days ago - 24 May 2019 | Education

The Namibia National Students Organisation (Nanso) leadership received a grilling from President Hage Geingob on Wednesday during a meeting to discuss a number of issues,...

Fallout over 2% tax

2 days ago - 24 May 2019 | Economics

Political parties and analysts have called on the government to abandon a plan to introduce a “voluntary” 2% tax to fund drought relief.Prime Minister Saara...

Bild challenges Guibeb

2 days ago - 24 May 2019 | International

The German newspaper Bild has rubbished a claim by the Namibian ambassador to Germany, Andreas Guibeb, that no arrest warrant had been issued against him.The...

Namibia ranks poorly for diversity

2 days ago - 24 May 2019 | Cultural

For a country that is described by many as one of the most diverse in the world, Namibia has ranked fairly poorly in a new...

Business ponders mass exodus

2 days ago - 24 May 2019 | Business

A recent survey by the Economic Policy Research Association (EPRA) of close to 600 businesses concerned about the government's policy direction shows that a staggering...

Load More