internal-audit

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Internal Audit 4.0

Purpose driven, digitally powered

An unprecedented set of challenges has led to broadened demands on Internal Audit functions. In addition, the pace and scale of innovation in the profession pointed to the need for an update of our vision. Our updated IA 4.0 framework brings three new features to the forefront. By aligning Internal Audit’s outcomes with the organisation’s purpose, helping accelerate organisational change and learning, and further embracing digital, we believe Internal Audit can upgrade and maximise its impact and the value it delivers.

A lot has happened since Deloitte released Internal Audit 3.0 (IA 3.0), our market leading framework for elevating the role and expanding the remit of Internal Audit. This framework supported the concept that Internal Audit is responsible for balancing three core activities: providing assurance, advising management, and anticipating risks and opportunities. IA 3.0 has been a useful and durable framework for many internal audit functions as they’ve evolved their role and remit, and inspired innovation in their ways of working.

Looking ahead, the breadth of demands on Internal Audit, and pace and scale of innovation in the profession point to the need for an update, but not an overhaul, of our vision of the Internal Audit function of the future. Our Internal Audit 4.0 (IA 4.0) publication:

  • Recaps the elements of Internal Audit 3.0
  • Summarises lessons learned as functions have adopted the framework; and
  • Presents a refreshed vision of the future of the Internal Audit function, IA 4.0, which incorporates those lessons and demonstrates why Internal Audit functions should be purpose driven and digitally powered

Internal Audit 4.0
Internal Audit Advisory - Core services

What’s new

Our updated IA 4.0 framework brings three new features to the forefront:

 

Purpose
By aligning Internal Audit’s role and remit with the organisation’s purpose, a new orientation for many functions, Internal Audit can design their role, remit, and ways of working in a more intentional way to support a specific outcome and contribution for the organisation, attract top talent, create stronger stakeholder engagement, and make smarter choices.
     
 

Accelerate
Organisations who have thrived in uncertain times were the ones who could learn to adapt and act quickly. And it’s here where we think Internal Audit can stretch its remit further—by helping to accelerate organisational learning and management action.
 
     
 

Digital
Many functions have embraced data analytics but few view “Digital” broadly enough or leverage capabilities to support the entire audit lifecycle. As the title of our publication implies, IA 4.0 is digitally powered. Applying digital requires a mindset to consider the art of the possible, while taking a highly systematic approach to using technology.

Internal Audit 4.0 informs our differentiated approach to providing outsource and co-source Internal Audit support. For in-house functions looking to set their future vision, elevate their impact and enhance their performance, Internal Audit 4.0 is supported by a comprehensive suite of Internal Audit Advisory services, regardless of where a function is on its journey to internal audit excellence.
 

Authors:

  

David Tiernan
Director, UK Risk Advisory

Owen Jackson
Director, UK Risk Advisory

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