Processes needs to pivot quickly: PwC study
As the world embraces – or gets swept up by the digital wave – organizations are rapidly adjusting their internal audit needs to face the onslaught of data, automation, risks and controls.
One of the best ways to help reduce the burden on the after-the-fact audits, is to incorporate continuous controls monitoring (CCM) into your business.
In some ways, the basics have remained the same, but there is still a need to elevate the internal audit’s role in the new digital world.
In its 2019 State of the Internal Audit Profession Study, PwC says, “Internal audit needs (1) the dexterity to pivot quickly and the keep up with the digital pace of the business, and (2) the knowledge and skills to provide advice and strategic assurance in this new arena.”
“As organizations move through digital transformation, internal audit functions that are more digitally fit more effectively help their stakeholders become smarter risk takers in the face of changing risk profiles.”
Identifying dynamic habits
The survey of 2,000 executives found there are six habits of dynamic internal audit functions:
- Go all-in on the organization’s digital plan
- Upskill and inject new talent to move at the speed of the organization
- Find the right fit for emerging technologies
- Enable the organization to act on risks in real time
- Actively engage decision makers of key digital objectives
- Collaborate and align to provide a consolidated view of risks
The PwC report says it is important to understand the definition of internal audit digital fitness:
- Have in place the skills and competencies to provide strategic advice to stakeholders and to provide assurance with regard to risks from the organization’s digital transformation
- Change processes and services to become more data driven and digitally enabled
Accomplishing those fitness goals will allow you to align internal audit and CCM with the organization’s strategic risks and thereby anticipate and respond to risk events at the pace and scale that the organization’s digital transformation requires, PwC says in the report.
Where does your organization fit?
PwC points out that internal audit for CCM is an evolving process and organizations need to evaluate where they stand on the scale from Beginners who are just starting the journey to Active participants or those at the top of the scale – the Dynamics, whose internal controls are actively preventing fraud and mitigating risks.
In part 2 of this blog, we will examine six additional ways your organization can improve CCM to make it digitally “fit.”
CaseWare RCM’s Alessa is a single solution that can help organizations with their Continuous Controls Monitoring and audit needs. Our Continuous Controls Monitoring (CCM) and Continuous Auditing (CA) allow management and internal audit to continually review business processes to ensure that they are meeting their targets for performance and effectiveness. Please contact us to find out more.
About Anu Sood
Anu Sood (LinkedIn | Twitter) is the Director Marketing at CaseWare RCM and is responsible for the company’s global marketing strategy. She has over 20 years of experience in product development, product management, product marketing, corporate communications, demand generation, content marketing and strategic marketing in high-tech industries.