Businesses are changing to embrace technological innovations. These rapid innovations are altering the business models and as a result, increasing the organizational risks. The innovations and ever-changing risk universe are challenging internal audit functions to be more relevant and specific. The Internal Audit framework must be able to assess and analyze the big amount of data for the organizations in terms of risk monitoring.
Internal Audit needs to adapt and respond to these organizational changes in order to manage and mitigate risks and drive value for the organization. The Internal Auditors must evolve and transform into these technological changes for better and improved decision making. Internal Audit framework must be incorporated through each business unit across the organization to facilitate overall business strategy. The Internal Audit functions must be made more agile and intuitive to help improve business sustainability and financial growth.
With the ever-changing technological landscape, businesses continually evolve to leverage these emerging opportunities which in turn requires the Internal Audit to evolve. In a volatile and ever-changing risk landscape, internal auditors have to switch gears from being conventional to a more technology-centric role, so as to contribute towards overall business sustainability and financial growth of the organizations. With these technological advancements, the role of the Internal Auditors becomes more and more vital. Let’s see some of the key areas where internal auditors need to focus.
Internal Auditors must have a strong understanding of the risk strategies and their impact on the organization. This will help them to assess risk effectively and efficiently, implementing strategies for managing and mitigating risks thereby making the Enterprise Risk Management framework more agile and intuitive. Having a holistic approach will enable them to provide insights on the risk appetite of the organization to the management and leaders.
- The Internal Auditors must have a thorough knowledge of the financial disclosures of the organization. This will help them in identifying the risks associated and whether they come under the scope of the audit plan or they are incorporated into the Enterprise Risk Management framework.
- Internal Auditors play an important role in making the management understand the emerging compliance risks and strategies to mitigate them. A holistic framework with a risk-based approach helps Internal Auditors to assess and prioritize these risks and needs to be addressed by the top management.
- The Internal Auditors must become a part of the corporate governance hierarchy, to understand the legal and regulatory issues, assist in business evaluation and improving the risk management framework by continuously interpreting and prioritizing risks.
- A holistic and risk-based approach can help auditors to drive value for the organization and play a vital role in defining the risk strategies. The approach should integrate proper audit planning and scheduling with effective and efficient audit tools and a disciplined audit methodology.
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