The internal auditor must always have a clear understanding of what is happening in the company and where it must come to become more successful.
New technologies, growth in the volume and speed of data exchange, global economic development- all these changes are the requirements for companies.
New challenges and risks appear. The internal audit function should also change, often faster than the company. Internal auditors are now faced with new tasks, for the solution of which new approaches and tools are needed, already somewhat different competencies.
New Challenges
IT Audits
Information in the modern world plays an increasingly important role. Ensuring its safety at the stages of collection, processing, storage, and disposal is of great importance to the company.
Today, to solve this problem, audit firms in Delhi conduct IT audits. Almost every division of the IA plans projects in one way or another related to this area. In tech companies, IT audits are more of a necessity.
According to a study of the current state and development trends of internal audit of financial organizations, 26% of them have IT, auditors, on staff, 83% attract external specialists in the field of information technology audit.
Digitalization and Big Data
The volume of electronic transactions is increasing, companies are moving away from paper media, and this leads to the need to restructure business processes.
More and more organizations are thinking about creating a unit for “digital transformation”, “digitalization”. Logically, the audit should not only keep up with these changes but even anticipate them and help the business in introducing innovations.
The growth in the volume of information requires new tools to process it. Spreadsheets can no longer cope with such an array of data. Internal auditors are implementing other tools to handle this volume of records and handle them efficiently.
This makes it possible to take the entire data array into processing, rather than samples. As a result, the reliability of the results increases, which, in turn, increases the accuracy of the results of the work of the internal auditors themselves.
Changing Risks and Audit Plans
A few years ago, the standard annual work plan of audit departments included a set of predefined audit projects, either ordered by stakeholders or selected based on a risk assessment. At the same time, a certain amount of time was always set aside for unplanned projects.
Today, external, and internal factors are changing more rapidly. As a result, the reassessment of the importance and necessity of audit projects for business occurs more often, and the list of audits performed at the end of the year will most likely differ from the one approved at the beginning of the year.
Conducting unscheduled audits today takes a long time. After all, the questions to which the answers are needed “here and now” arise more and more often in business due to the need for constant changes for the survival and development of the company, and this is why you need to go for audit consulting services.
New Tools and Approaches
New challenges and tasks require audit teams to change the way they work, apply new tools and methods, and consider the most popular and relevant ones for today.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.
Posted by:
CA Aman Aggarwal
AKGVG & Associates