Internal Audit 3.0 - The future of Internal Audit is now
The Internal Audit profession has not been forced to innovate for decades. Organizations and their environments are changing faster than ever and in ways that are less predictable
The Internal Audit profession has not been forced to innovate for decades. Organizations and their environments are changing faster than ever and in ways that are less predictable.
Organizations face an increasing uncertainties. The speed of change is unprecedented, adoption of new technologies such as automation and machine learning create new risks, and the breadth of risk continues to expand.
At the same time, stakeholders want and need more from Internal Audit:
• Assurance needs are broad and continue to expand
• Internal Audit’s role as an advisor is key to maximizing the function’s value, yet most of Internal Audit functions’ activities relate to assurance
• The pace of change and risk is such that retrospective auditing can only help so much. Internal Audit can help anticipate risk and provide proactive assurance.
In contrast, our 2018 Global Chief Audit Executive Research Survey, polling insights from over 1,100 Chief Audit Executives representing Internal Audit functions from nearly 40 countries, has found only 40% of CAEs surveyed believe they have strong impact and influence within their organizations, and only 53% Internal Audit’s stakeholders see Internal Audit ‘somewhat’ positively.
To keep pace, stay relevant, and continue to provide value, there is an urgent need for Internal Audit functions to innovate and transform. Failure to act now will see organisational change outpace Internal Audit’s skills and capability to provide value.
Deloitte has invested in developing a blueprint for the future of Internal Audit which outlines the role and remit that we believe functions should aspire to, the skills and capabilities they will need, and the tools and technology which will be required to future proof assurance.
This Internal Audit 3.0 blueprint focuses on the need for Internal Audit to Assure, Advise and Anticipate.