Internal Audit Insights 2018



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Internal Audit Insights 2018

High-impact areas of focus




Deloitte research

1

 and experience strongly indicates that stakeholders 



expect Internal Audit to be far more focused on the risks and 

issues of the future than on those of the past. This means shifting 

from auditing the past to advising on the future and to focusing on 

activities that present new and unfamiliar risks. Some of this will 

require new skills and talent models. Some demand new frameworks 

and interaction with new stakeholders. Failing to keep pace with the 

evolving organization and environment, however, puts at risk Internal 

Audit’s role as a relevant, engaged, and strategic player within  

the organization. 

For that reason, our 13 high-impact areas of focus for 2018 identify 

activities and risks that present opportunities for Internal Audit to 

make a positive impact. Whether by adopting new methods, such as 

automating core assurance and taking an Agile approach to internal 

auditing, or auditing new threats, such as digital risk, a focus on these 

areas as they relate to your organization will heighten Internal Audit’s 

impact and influence. Moreover, these areas of focus will satisfy 

stakeholders who desperately need Internal Audit’s objectivity, skills, 

and advice as they tackle new challenges.

Evolution or irrelevance? Internal Audit at a crossroads, Deloitte’s Global Chief Audit Executive 

Survey, Deloitte, 2016 

Audit/gx-deloitte-audit-executive-survey-2016-print.pdf>




Internal Audit Insights 2018  | High-impact areas of focus 

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The year ahead

Table of contents

Robotic process automation  

and cognitive intelligence

Cyber security

Data privacy

Cloud migration

Auditing digital risk

Internal Audit analytics

Crisis management

Automated core assurance

Culture risk

Operational risk assurance

Auditing agile

Agile internal auditing

Third-party risk



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Robotic process automation 

and cognitive intelligence

Robotic process automation (RPA) is the use 

of software to perform rules-based tasks 

in a virtual environment by mimicking user 

actions to obtain the same or enhanced 

results. RPA also often taps multiple 

systems. In general, it makes repetitive 

manual activities more efficient  

and effective. 

Cognitive intelligence (CI)—a step beyond 

RPA—includes natural language processing 

and generation, artificial intelligence, and 

machine learning. CI can extract concepts 

and relationships from data, “understand” 

their meaning, and learn from data patterns 

and prior experience. 

Both RPA and CI are seeing adoption in 

the business and second-line functions, 

particularly in financial services and other 

data-intensive industries. In addition to 

many benefits, RPA and CI pose operational, 

financial, regulatory, organizational, and 

technology risk. Fortunately, the associated 

risks can generally be addressed by 

extending existing approaches.

Consider: As functions adopt RPA, CI, and 

similar technologies, Internal Audit should 

support them in identifying, assessing, 

and monitoring the risks that come along 

with these technologies. Doing so calls for 

an understanding of the new risks and 

the need for well-designed and properly 

implemented controls. It is also necessary 

to govern the use of these technologies 

in areas like integrity, data access, change 

protocols, and security.

Internal Audit plans should address 

the effects of RPA and CI on processes, 

management, and the organization. To 

provide sound assurance, Internal Audit 

should become involved early. Review 

documentation of testing procedures 

and any prior testing by sampling test 

cases documented, results generated, 

and issues logged. Ascertain that 

a framework and process exist to 

monitor “bots” in testing and production 

environments and to triage issues. 

Specifics include issue identification and 

resolution, bot change management, third-

party risk management, and supervision 

and compliance. Opportunities also include 

advising on risk mitigation, leading practices, 

and automation strategies. 

Finally, Internal Audit should consider using 

RPA to automate repetitive controls testing 

and internal reporting tasks.



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Auditing digital risk

Many companies have established digital 

transformation strategies; created siloed 

teams to develop apps, websites, and 

other digital channels; and embedded 

first- and second-line teams in these 

efforts. Yet Internal Audit generally lags in 

understanding the technologies, methods, 

and tools of digital initiatives. These include 

application-development methods, dev-ops 

teams (which combine development and 

operational professionals), and tools that 

automate controls. Many Internal Audit 

groups retain traditional mind-sets and 

methods, whereas digital innovators employ 

more agile and automated techniques. 

Apps and websites used in customer 

acquisition and interactions can raise a 

range of identity, privacy, and security 

risks. Meanwhile, many organizations lack 

risk frameworks and risk management 

capabilities equal to the complexities and 

challenges of those risks and those posed 

by external partners who provide these new 

technologies, channels, and services.



Consider: In audit planning, use key risk 

themes to assess risks of digital programs, 

processes, and products. Review the digital 

strategy and road map and decide where to 

focus, given the risk themes. Digital poses 

the usual cyber risks, plus new strategic, 

reputational, and third-party risks—in a 

fast-paced environment. Internal Audit 

should aim to understand the tools used to 

automate processes and controls, and then 

assess the integrity of the tools. Track digital 

project pipelines and get involved in early 

stages and selected iterations. 

Focus on how related risk functions are 

involved, since they are closer to the 

delivery teams. Promulgate fit-for-purpose 

digital risk frameworks, methods, and 

oversight in the first and second lines. This 

includes providing the appropriate level of 

assurance over frameworks for managing 

external parties in digital initiatives. 

Integration of platforms blurs the boundary 

between organizations and third parties, 

so clarify the processes, data flows, and 

regulatory implications. Internal Audit 

groups are increasingly using cosourcing, 

upskilling, and dedicated teams to develop 

the focus and resources needed in this area.




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Cyber security

In recent years, cyber security 

audits have often focused on 

regulatory compliance - areas 

such as data privacy, IT security, 

and business continuity. These 

audits have generally ascertained 

compliance with regulations and 

standards (such as ISO 27000). 

Compliance will continue to 

be high on most companies’ 

radar, especially for US-listed 

organizations with the Securities 

and Exchange Commission making 

cyber security a priority in its 

National Exam Program, and with 

its recent creation of a Cyber Unit 

within its Enforcement Division. 

Also, new regulations are being 

developed daily in parallel with 

the new AICPA cybersecurity 

risk management examination. 

Companies should continue 

to focus on assurance while 

understanding that compliance 

with existing regulations hardly 

guarantees high, or even 

adequate, cyber risk management. 

Organizations involved in several 

recent high-profile cyber incidents 

were likely in compliance with 

applicable cyber regulations. 

Indeed, while most cyber 

security activities focus on the 

IT department, corporate email, 

and the like, the highest risks now 

emanate from business teams using 

cloud-based systems, working with 

external developers, and using 

applications outside of IT proper. 

Much of this activity escapes the 

attention of the CIO, CISO, and 

Internal Audit, and presents serious 

risks. The challenge now is to 

identify a broader range of cyber 

risks before they occur.

Consider: Internal auditors 

accustomed to providing 

compliance-related assurance need 

new mind-sets and methods. Start 

by thinking broadly. For example, 

in a pharmaceutical company, 

Internal Audit may audit cyber 

risks related to privacy regulations 

and drug trials, but overlook those 

related to a small nuclear reactor 

used in radioisotopes (an actual 

situation). In Internal Audit planning, 

be proactive and cast a wide net. 

Look beyond rotational audit 

plans to seek out new initiatives, 

products, markets, contracts, and 

external parties. Then challenge 

management on risk identification, 

monitoring, and management in 

those areas. 

Management should instill a culture 

of awareness of how decisions and 

behaviors magnify or minimize 

cyber risk. Encourage the use of 

war gaming to test the impact of 

cyber incidents on operations, 

infrastructure, data, finances, 

reputation, and recovery and to 

gauge responses and resilience—

both of which should be  

regularly assessed.



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Data privacy

The EU General Data Protection 

Regulation (GDPR), effective 

May 25, 2018, affects all EU 

organizations that collect or process 

data on individuals, and non-EU 

organizations with EU operations. 

The GDPR greatly expands 

individuals’ ability to determine 

which personal data is collected 

on them and how it is treated. 

For example, individuals will have 

to opt in to allow certain uses of 

their data. The GDPR establishes 

strong penalties for noncompliance, 

and calls for appointment of a 

data protection officer (DPO) and 

detailed documentation of roles, 

responsibilities, and processes 

related to the collection, use, and 

retention of data on individuals, 

including employees and 

independent contractors. 

While most affected organizations 

have been working to fulfill these 

requirements, many are lagging 

in certain areas. Moreover, GDPR 

presents real opportunities for the 

organization given the marketing 

and analytical possibilities provided 

by enhanced data mapping and 

management. Internal Audit can 

help the organization to manage 

the increased risk posed by the 

new regulations and to realize 

the potential of an enhanced 

understanding of data that this work 

can create.

Consider: Organizations must 

establish clear accountabilities 

around data. Apart from appointing 

a DPO, this means clarifying who 

is responsible for addressing 

specific requirements, such as data 

requests, breach response, and 

data retention. Accountabilities 

and related processes must be 

documented in a framework 

that explains the execution of 

information requests, retention of 

data, and other procedures. Given 

the mandate to retain data only as 

long as it is needed, focus on the 

data life cycle and on retention and 

deletion policies. 

The organization must also 

document what data is collected 

by which systems, where data is 

transferred and stored, and for what 

purposes. Help stakeholders to 

identify data repositories, data flows, 

and who uses and who can alter 

data. This data mapping positions 

the organization to respond to 

information inquires and manage 

individual consent. 

In Internal Audit planning, take a 

risk-based approach to addressing 

requests and requirements and 

emphasize key systems, as defined 

by data volume, importance, and 

sensitivity. Ensure that a Data 

Privacy Impact Assessment (DPIA) 

is conducted for any new initiative 

involving individual data and pay 

close attention to hand-offs of data 

to any third parties.



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Internal Audit analytics

Analytics is a perennial high-impact 

area for several reasons. First, beyond-

the-basics analytics is the single most 

powerful booster of Internal Audit 

efficiency and effectiveness available. 

Second, the continuing digitalization 

of business generates huge quantities 

of data, which analytics can transform 

into valuable information and business 

insights. Third, the tools for analyzing and 

visualizing data are now simpler, cheaper, 

more available, and easier to use than 

ever. Finally, stakeholders’ needs for 

higher-level assurance, insights, and risk 

anticipation have never been greater. 

Yet Internal Audit’s adoption of analytics 

has been relatively uneven and slow. 

Internal Audit is, admittedly, a function 

that can find changing the status quo 

and adapting to a new way of life difficult. 

An often-undiagnosed barrier to progress 

can be methodology: traditional audit 

approaches can choke innovation, 

restrict data gathering, and treat 

analytics as a bolt-on capability rather 

than an imperative.



Consider: Analytics should be seen 

as integral to all of Internal Audit’s 

planning, execution, and reporting, 

and should be reflected in methods and 

skills accordingly. 

Rather than setting uninformed and 

fixed audit objectives, use data in the 

audit scoping stage to highlight unusual 

patterns, unexpected relationships, and 

changes in business conditions. 

To prove the value of analytics, initiate 

pilot projects in areas where data 

is readily available, success is fairly 

certain, and results will drive value 

(such as reducing fraud, waste, 

or other policy breaches). 

Start with a hypothesis and gather 

relevant data; for example, we expect 

a certain behavior or outcome here; is 

that supported by the data? Then iterate 

through the data to drive sampling and 

generate relevant insights (rather than 

lists of exceptions), and communicate 

using data visualization tools. 

Also, consider using RPA and CI (as noted 

above) to automate repetitive tasks and 

accelerate reporting. Set your sights on 

“Digital IA,”

1

 an integrated set of analytical 



capabilities geared to using and auditing 

advanced technologies.

The untapped power of “Digital IA,” Deloitte, 2017.




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Automated core assurance

Leaders realize that risks associated with business as usual 

need to be managed even as they pursue new initiatives, 

and they are coming to expect ongoing assurance on these 

core activities. Internal Audit groups should be moving to 

provide this continuous comfort—ongoing assurance—

on those core processes, controls, and activities to 

management and the board. 

Automated assurance implies real-time reporting that flags 

actionable items. Such reporting enables rapid remediation, 

with the option of continued monitoring pending further 

notification. At this point, using a sampling approach when 

entire populations could be monitored, and reporting 

irrelevant details, is becoming a hallmark of a backward-

looking Internal Audit function that cannot keep up with 

developments or provide assurance efficiently. 

Technologies to facilitate automated assurance and real-

time reporting include off-the-shelf tools, which hold some 

benefits, and custom solutions that can deliver automated 

assurance over most critical processes and controls.

Consider: Automated assurance should gear comfort levels 

to the drivers of value and risks to those drivers. Begin by 

assessing core processes in the first line, their criticality, 

and the risks, and then prioritize accordingly. 

Technology tools in existing systems provide many 

capabilities for automating core assurance, although 

the first and second lines rarely fully employ them. So 

promulgate use of these capabilities and the embedding 

of them into processes and systems. First- and second-line 

functions are often unaware of these capabilities, which 

vendors rarely emphasize. 

Conversations with stakeholders can identify key risks and 

controls to monitor. Not everything should be automated, 

which raises scoping issues—whether to emphasize, for 

example, financial or operational risks and controls. 

Become familiar with the possibilities of automation tools, 

and locate early and easy wins, typically found around key 

financial controls and reconciliations. 

Overall, automation provides ample opportunities for 

easily-achieved cost savings and enhanced assurance 

simultaneously. Automating core assurance also enables 

Internal Audit to allocate resources to higher value areas 

and activities.



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Cloud migration

Using cloud services can significantly alter 

an organization’s risk profile, depending on 

the data involved, cloud service and model 

type, and strength of user and third-party 

controls. The term cloud includes software 

as a service (SaaS), platform as a service 

(PaaS), and infrastructure as a service 

(IaaS). SaaS and PaaS provide cloud-based 

software and platforms, while IaaS provides 

infrastructure services. Cloud service 

models include private, public, or hybrid 

models (a mix of on-premise, private cloud, 

and public cloud services). 

The risks for these service types depend 

mainly on access and data criticality. Given 

the varying levels of user control, security 

requirements will differ for each service 

and model type. The appropriate security 

controls will also depend on the data and 

processes involved. 

Regardless of service type, in a public cloud, 

you are entrusting data to a third party, and 

you can audit controls design and execution 

only up to a point, after which you rely on 

that party’s assurance. Whatever assurance 

is obtained from the cloud provider or 

through procurement, you have limited 

visibility into the provider’s environment.



Consider: Traditional audits of areas such 

as network configuration, asset protection, 

access control, logging and monitoring, 

and vulnerability assessment are still 

relevant for the cloud, but can differ. 

Cloud standards and guidelines from the 

SANS Institute, NIST, ISO, and the Cloud 

Security Alliance are useful, but each has its 

own focus, so you must tailor an approach 

that fits your organization’s strategy, risk 

profile, cloud use-case(s), and cloud service. 

Assess the cloud environment holistically, 

and evaluate governance elements and 

shared responsibilities. 

Often-misunderstood areas include 

inherited controls, incident response 

responsibilities, and disaster recovery 

capabilities. Consider obtaining cloud 

certification and tapping external expertise. 

While cloud services are often positioned 

as cost savings, ensuring optimum value 

calls for choosing services carefully, 

monitoring and managing resources tightly, 

and deactivating unnecessary components 

promptly—all items to review. 

Additional assurance can be gained by 

evaluating providers’ locations, business 

model, customer base, history, and financial 

soundness. Ascertain that management 

understands which contractual 

responsibilities are the cloud service 

provider’s, the organization’s, or shared.




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Third-party risk

Organizational leaders have long 

expected assurance around processes 

for vendor screening, selection, 

contracting, evaluation, payments, and 

termination. They have also expected 

audits geared to identifying potential 

cost savings and recovery. 

Developments in technology and 

automation have introduced more 

advanced analytics capabilities and real-

time assurance. Beyond this, however, 

leaders want—and need—a more 

holistic picture of third-party risks and 

their management. 

This calls for Internal Audit to 

understand the organization’s entire 

approach to third-party relationships. As 

noted in a 2016 Deloitte global survey

2



the third-party risk universe includes 



the third-party ecosystem, third-party 

risk management and governance, and 

technology and methods for monitoring 

and managing relationships. 

While cost savings and recovery remain 

key, excellence in extended enterprise 

risk management (EERM) is also a 

must. Why? Because third parties have 

become critical to most organizations 

while presenting myriad risks.



Consider: When planning your internal 

audits, start with an assessment of 

third-party contracts on the basis 

of spend and risk. Large, complex 

contracts will generally present more 

potential exposures and risks than 

contracts for goods purchased within 

the usual procurement process. 

For vendor spend assurance, 

promote adoption of automated 

tools for analyzing spend and vendor 

performance, if they are not in place; if 

they are in place, provide assurance on 

their integrity and effectiveness. Some 

of these tools can apply RPA to data on 

deliveries, service levels, billings, and 

other metrics, making real-time third-

party assurance a reality—and, soon, 

an expectation. These tools also free 

resources to work on other third-party, 

or extended enterprise, risks. 

An overall EERM framework can be 

utilized to surface key areas of risk 

specifically embedded within the 

third-party ecosystem. Effective audit 

programs that assess the health of the 

ecosystem and its components will 

help to reduce risk over the sourcing 

of goods and services most critical to 

business strategy and operations.

2

  The threats are real: Third party governance and risk management, Deloitte global survey, 2016 



< https://www2.deloitte.com/content/dam/Deloitte/za/Documents/risk/ZA_Third_Party_

Governance_and_Risk_Management_Survey_RA_Dec16.pdf >




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Culture risk

An organization’s culture plays a major role in business 

performance and marketplace reputation. Culture can also 

create risk for the organization when there is misalignment 

between an organization’s values and leaders’ actions that 

shape culture, employee conduct and behaviors that sustain 

culture, or organizational systems that reinforce culture. 

The spotlight often shines on culture risk issues only after 

an organizational crisis or incident, but a growing number of 

leaders are shifting to a proactive approach turning culture into 

a value enabler and driver of organizational performance. Such 

an approach requires gaining greater data-driven insight into 

the organization’s culture, better understanding of employee 

engagement and employee behaviors, and looking for external 

market signals to get ahead of risk issues and drive necessary 

management actions. 

As the third line of defense, internal audit plays a vital 

role in culture risk management—providing assurance 

and advising on culture as appropriate and validating 

mitigation activities. Auditing culture is not a matter of 

reviewing risk-related policies and procedures; it is a matter 

of developing an understanding of people’s approach to 

managing risk as they do their jobs. In a strong culture, there 

is clear awareness and alignment of values, organizational 

processes, behavioral norms, internal and external 

statements, and reward systems to promote the right 

decisions, the right risk management behaviors, the right 

conduct—and, thus, the right culture.

Consider: Internal Audit should engage in broader 

organizational-level culture risk management efforts— 

providing assurance and advice on culture as appropriate 

and validating risk management activities. To do this, 

consider aspects of culture throughout the life cycle of 

an internal audit; for example, coordinate with culture 

stakeholders (e.g., human resources, risk, compliance, 

customer experience, security, technology) to understand 

potential areas of risk to optimize audit coverage, link 

cultural and employee engagement assessments into 

internal audit risk assessments, and incorporate culture 

metrics and control aspects into audit programs, including 

aspects of culture risk in audit reports. 

Internal Audit can also perform assessments of the 

organization’s culture risk management activities against 

leading practices to provide recommendations to 

management and perform additional procedures to assess 

culture risk management programs’ effectiveness. A culture 

risk assessment can provide insight into intangible drivers 

of risk, controls effectiveness, compliance failures, and 

potential misconduct; it can also direct audit fieldwork and 

analysis to where it most matters. Such an assessment can 

include a range of activities, such as confidential interviews, 

focus groups, and data analytics geared to discovering 

where controls are working well, causing frustration, or 

failing to deliver intended results. 

Assess how culture differs across locations and ascertain 

whether the risk management framework can identify and 

address outlier behavior. 

Work to ensure that the second line of defense has visibility 

into culture at the first line, and ensure management and 

the Board understand that culture will always remain a work 

in progress.



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Operational risk assurance

While functions such as cybersecurity and employee health 

and safety already provide assurance around operations, 

Internal Audit should conduct deeper assessments of 

operational efficiency, effectiveness, and risk management. 

Operational audits focus mainly on nonfinancial assets 

and processes. They aim to determine how performance 

aligns with management’s expectations, identify areas to be 

investigated, and propose enhancements. Meanwhile, many 

internal auditors are oriented more toward financial processes 

and performance. 

Even in capital-intensive industries like manufacturing and 

oil and gas, traditional audits may overlook basic operations. 

Internal Audit groups in such industries typically conduct 

useful company-level audits around the supply chain, 

cybersecurity, contract compliance, capital projects, human 

capital, and sustainability. However, field-level audits—of 

productivity, asset performance management, maintenance 

activities, operations technology and systems, regulatory 

compliance and safety, and asset integrity—may present 

more opportunity to add value.



Consider: Excellence in company-level operational internal 

audits should be table stakes. A clear focus on core operations 

demands an understanding of field-level operations as well as 

company-level operational risks. Start by ascertaining 

that second-line activities are providing proper assurance 

and, if they are not, help them to do so or provide the needed 

additional assurance. 

When developing the Internal Audit plan, tie operational audit 

activities to organizational goals and strategies and to key 

operational risks posed to them. Using an operational risk lens, 

identify upcoming capital projects, significant maintenance, 

and similar initiatives. Look to the organization’s risk 

assessment and the Enterprise Risk Management  

system, but also conduct robust conversations with key  

operating executives. 

Apply analytics to process data to isolate trends, patterns, 

anomalies, and root causes, and enhance reports through 

visualization tools, added insights, and risk anticipation. 

Consider whether external subject matter specialist 

resources may be needed, or whether knowledge can be 

accessed internally through guest auditor or  

rotation programs. 




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Crisis management

Crisis management provides the structure, 

leadership, decision-making, and communications 

to support the organization in managing a crisis 

situation. It encompasses business continuity, 

disaster recovery, cyber incident response, and 

financial market crisis response planning and 

execution. Most major organizations have basic 

business continuity plans and disaster recovery 

plans in place, particularly for IT, supply chains, 

and facilities. 

Usually Internal Audit will, on a rotational basis, 

review those plans, provide assurance on related 

compliance, and conduct post-event reviews. 

However, the focus on continuity management has 

widened to include any event that could irreparably 

damage finances, operations, cyber capabilities, 

reputation, or other essential assets. 

A crisis management plan provides a framework and 

contingency plans for senior executives should the 

need arise. Responsibility for crisis management 

sits with senior leaders, which means that Internal 

Audit is the logical—and perhaps only—source of 

assurance and advice.

Consider: An organization needs a crisis 

management program encompassing governance, 

processes, and risks. Governance organizes program 

ownership and the roles and responsibilities of 

security, legal, IT, Internal Audit, and other functions. 

Processes are needed to address crisis response, 

decision-making, recovery, communications, and 

contingency plans. Risks must be identified to 

enable scenario planning and response capability 

development through training and simulations. 

Aim to provide assurance and advice in each of 

those areas, and to anticipate events and 

promulgate best practices. 

Consider whether leaders can answer the questions: 

What are you prepared for? How prepared are you? 

Ensure that simulations are regularly conducted 

and used to develop and test overall plans as well as 

playbooks for specific events. 

Go beyond regulatory guidance and checklists 

and audit not just the existence of plans, but their 

likely effectiveness. 

Also, consider industry-specific issues and evolving 

regulations, such as the EU’s GDPR reporting 

requirements for breaches. Internal Audit may need 

to upskill or tap external sources to add value in this 

area, but doing so can save the entire enterprise.




Internal Audit Insights 2018  | High-impact areas of focus 

15

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Auditing agile

Organizations are increasingly adopting 

Agile methods of managing projects and 

processes. Companies and functions in 

technology and financial services lead the 

way, but others seeking increased speed, 

efficiency, and innovation are also coming 

on board. (These include Internal Audit 

functions—see below.) Desired outcomes 

include faster results, greater focus on 

user needs, more nimble decision-making

and reduced documentation. 

Agile empowers people to make decisions 

and take calculated risks based on more 

targeted objectives delivered in shorter 

time frames, but these attributes can 

stress some control environments. A 

fast pace can introduce more frequent 

impacts or errors, but that can be offset by 

increased direct business ownership. 

An intense focus on user needs can 

overlook other considerations, such as 

security or regulatory concerns, which can 

be mitigated by ensuring that standards 

are known and applied across Agile teams. 

Reduced documentation can make it 

hard to know what was done, by whom, 

when, and why, which calls for changes to 

governance and controls. 

Internal Audit must be aware of Agile 

processes and projects in the organization, 

and of their potential issues and impacts.

Consider: Internal auditors should 

understand Agile methods and clarify 

responsibilities, schedules, resources, 

deliverables, and risks and controls—in 

discussion with Agile team leaders. 

A flatter structure may mean greater 

variability in the way outcomes are 

achieved, while less documentation may 

reduce visibility into risks. Controls may 

be given short shrift as the pace of work 

picks up. Therefore, assurance functions, 

including Internal Audit, should assess 

risks and controls during all phases, from 

ideation to pre-implementation.

Traditional audit plans may be less useful 

than early involvement and parallel visibility 

into the work. Internal Audit may best 

approach Agile by understanding what is 

to be delivered—what the Agile project or 

process aims to achieve, delivery risks, and 

proposed controls—and by understanding 

how it is being delivered, including 

management of risks and use of controls. 

Proactive engagement by Internal Audit 

is key to establishing how Agile can be 

managed while maintaining balanced and 

sustainable levels of control.



Internal Audit Insights 2018  | High-impact areas of focus 

16

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Agile internal auditing

Principles and practices of Agile development are being 

applied to audits and projects by forward-thinking 

Internal Audit groups. Agile methods foster rapid 

response to emerging issues, closer collaboration with 

stakeholders, faster delivery cycles, and streamlined 

reporting

3

. Agile also changes the approach that internal 



auditors take to their work. For example, instead of 

auditing to a periodic schedule, internal audits are 

conducted when needed, particularly when the need 

is urgent. Rather than waiting until an internal audit is 

complete, auditors deliver weekly or even daily updates 

as findings or issues emerge. Rather than presenting 

unnecessary details, reports deliver insights on what 

matters most. 

Agile has the power to revolutionize Internal Audit by 

making audits and reviews more relevant, risk-based, 

and real time.

Consider: First, be clear about what Agile is and what it 

is not. While it is a flexible methodology, simply calling a 

process Agile (or using terms such as Sprint, Scrum, and 

Backlog) does not make it so. Agile Internal Audit adapts 

Agile to Internal Audit needs. It is up to you to decide 

whether and where Agile might work in your function. 

Good candidates are areas with a need for more 

responsive and relevant reporting, high-stakes projects 

like IT installations or merger integrations, and where 

Internal Audit groups need to do more with less. 

Learn about Agile from internal practitioners in software 

or systems development, or enlist external support. 

Understand that adopting Agile demands a change of 

mind-set as well as methods, and not every internal 

auditor can adapt. However, those who do usually find 

that they relish the pace of work, engagement with 

stakeholders, and enhanced effectiveness that result 

from Agile Internal Auditing.

Becoming agile: A guide to elevating internal audit’s performance and value, Deloitte, 2017 < https://www2.deloitte.com/content/



dam/Deloitte/us/Documents/finance/us-advisory-agile-internal-audit-part1-introduction-to-elevating-performance.pdf >


Internal Audit Insights 2018  | High-impact areas of focus 

17

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The year ahead

Clearly, the year ahead calls for a strong 

focus on all things digital. Of our 13 

hot topics, more than half are aligned 

directly or closely with information 

technology and capabilities. Most 

Internal Audit groups should prioritize 

assurance and advisory work around 

uses of these technologies in the 

organization and ways of using them 

to enhance their own work. Just as 

customers are tending to outpace 

organizations in their uses of digital 

technologies, many stakeholders now 

outpace Internal Audit in similar ways. 

Forward-thinking Internal Audit functions 

seek not only to provide assurance and 

advice, and to apply digital technologies 

to their own work, but also to anticipate 

issues and risks associated with 

those technologies. They anticipate 

stakeholders’ potential moves to new 

technologies, strategies, and business 

models so they can ready themselves 

and the organization for those moves. 

In this way, they assist stakeholders in 

some of the most challenging areas 

they face—new areas where risks are 

emerging and where new value can be 

created—thus increasing their impact 

and influence in visible and  

valuable ways.



Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their 

related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide 

services to clients. Please see 

www.deloitte.com/about

 to learn more about our global network of member firms.

Deloitte provides audit & assurance, consulting, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple 

industries. Deloitte serves four out of five Fortune Global 500® companies through a globally connected network of member firms in more than 150 countries 

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© 2018. For information, contact Deloitte Touche Tohmatsu Limited



Global Internal Audit Leadership

Terry Hatherell 

Global Internal Audit Leader 

thatherell@deloitte.ca

 

+1 416 643 8434



Kristopher Wentzel

 

Internal Audit Leader, Americas 

kwentzel@deloitte.ca

 

+1 416 643 8796



Porus Doctor

 

Internal Audit Leader, 

APAC 

podoctor@deloitte.com



 

+91 22 6185 5030



Peter Astley

 

Internal Audit Leader, EMEA 

pastley@deloitte.co.uk

 

+44 20 7303 5264



Sandy Pundmann

 

US Internal Audit Leader 



spundmann@deloitte.com

 

+1 312 486 3790



Sarah Adams

 

IT Internal Audit 



Global Leader 

saradams@deloitte.com

 

+1 713 982 3416



Neil White

 

Internal Audit Analytics  



Global Leader 

nwhite@deloitte.com



 

+1 646 436 5822




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