Technology for audit: what does this mean in today’s age?
In a conference held by Diligent with over 600 GRC professionals and leaders of worldwide organisations, one thing became clear: audit teams are more vital than ever. Now, the responsibilities of audit teams span an extensive array of areas, including environment, social and governance (ESG), cybersecurity, and regulatory compliance.
In this blog, you’ll find a summary of an executive brief, made from the insights of GRC professionals at the conference. Acknowledging the audit function’s pivotal role as an impartial assessor of internal processes, business leaders are increasingly seeking that audit teams provide thorough examinations and insights into intangible areas such as:
- Climate and sustainability
- Diversity, equity and inclusion (DEI)
- Human capital management
- Cyber resilience
Organisations are looking to internal audit to foster a culture of compliance to meet the demands of a dynamic regulatory landscape. Now more than ever, the role of technology for audit is becoming a crucial topic.
Yet, business leaders are not only looking for data from audit; they are looking for clarity and insights that can help them make strategic decisions. To meet these growing expectations, audit teams need to embrace technology and transform the way they work. By centralising data, standardising processes, automating where possible and using advanced analytics, audit teams can provide real-time insights and become strategic advisors to the board and C-suite.
Key trends shaping the future of internal audit
As internal audit continues its journey of transformation from a compliance function to a strategic advisory role, several key trends are shaping its future, including the increasing use of technology for audit. These trends highlight the evolving priorities and expectations placed on audit teams in today’s business climate.
- Expanding focus: The scope of audit teams has expanded considerably. ESG principles are now within the purview of nearly all audit teams, with a projected 50% increase in attention to climate and sustainability. Cybersecurity, a critical area, has been acknowledged by 96% of audit leaders as a top priority.
- Speed and agility: In the current fast-paced business environment, speed and agility are essential for success. Audit teams must keep up with the pace of change, providing on-demand visibility and real-time insights to support informed decision-making. Over 90% of companies aim to achieve continuous compliance in the coming years, underscoring the need for audit to adapt to this new paradigm.
- Doing more with less: Yet, despite these heightened expectations, audit teams are often faced with resource challenges. Economic uncertainty has led to cost-cutting measures within businesses, which means audit teams must find ways to improve their reporting capabilities without a significant increase in their budgets.
- Shift from reactive to proactive: To satisfy the expectations of stakeholders, audit teams must transition from reactive reporting to a proactive, prescriptive approach. This transformation necessitates the use of technology to modernise audit processes and to provide immediate insights that empower assured business decisions.
Building a modern audit function through technology for audit
Embracing technology is essential for audit teams to effectively adapt to a changing environment and enhance their strategic advisory role. A technologically empowered audit function can significantly improve capabilities despite resource limitations, thereby delivering greater organizational value. Centralising audit data into a single platform enhances visibility and streamlines processes, facilitating better management of audit programs and integration of analytics.
Internal audit can add lots of value in unconventional ways. Think outside the box. I ask my auditees, “If I had a magic wand, how could I make your life easier?”
– Jewell Freeman, Chief Audit Executive, Louisiana Department of Corrections
Standardisation of processes, especially for intangibles such as ESG and sustainability, is crucial. By aligning with emerging standards and consistently quantifying these metrics, audit teams can ensure reliable reporting and enable efficient automation. Additionally, modern audit platforms leverage AI and machine learning to provide standardised templates and automated workflows, which enhance flexibility and efficiency.
Achieving continuous assurance: The future of audit
The future of audit is continuous assurance, moving away from annual or bi-annual compliance exercises. Additionally, many agree that the way to achieve this is through technology for audit. This new standard demands on-demand information on the progress of key initiatives, focused insights for strategic adjustments and data-driven validation of essential strategies.
To achieve continuous assurance, audit teams must provide the clarity that empowers confident business decision-making. The right technology can help create a synergistic effect that amplifies the impact of audit. Centralised visibility, standardised and automated benchmarking, and actionable analytics empower audit leaders to foster a strategic partnership with business leadership, characterised by trust and influence.
Audit teams are in a unique position to provide critical support. By integrating technology and adopting a strategic mindset, auditors can move beyond a compliance role to become a trusted advisor, offering insights that are key to business success.
What’s the big deal about technology for audit?
Having explored the role of audit in today’s landscape, especially through the eyes of business leaders, one thing has become certain: technology is the key to keeping up. The demands placed on audit teams are changing and not keeping up with them can lead to dire consequences. On the other hand, the new demands mean new opportunities. Using technology for audit can transform audit functions for the better. The only thing left to explore is how, using our ebook “Future Proofing Internal Audit”.
