of UK stakeholders report that Internal Audit (IA) contributes significant value
of UK IA leaders believe technology adoption impacts IA's value to the organisation
of UK IA functions are advanced in their adoption of technology (we call this group “Evolvers”)
of global Evolvers excel at attracting talent and move talent and technology adoption in tandem
It’s no surprise that IA functions which help organisations manage the related risks whilst keeping pace with innovation themselves are considered to be adding significant value.
The list of technologies Internal Audit must understand is growing fast. PwC identified the essential eight emerging technologies expected to soon have significant global impact. And more are on the horizon.
With the accelerating pace of technology-driven innovation, it’s hard to know exactly how Internal Audit’s capabilities will need to change in as little as five years. But one thing is clear: stakeholders will expect Internal Audit to keep up with the organisation’s needs.
Evolvers are leaning right into this technology-driven future. They’re using collaboration tools to increase their levels of organisational alignment and efficiency, data extraction tools and robotic process automation (RPA) to improve the expediency and coverage of their audits, and analytics, Artificial Intelligence (AI) and machine learning to offer innovative and value-added insights to the organisation.
Our study showed that 11% of UK IA functions (14% globally) are advanced in their use of technology. We refer to this group as Evolvers. Surprisingly, Evolvers are found not only in large organisations or regulated industries.
Evolvers are advanced in their use of IA’s technology foundation tools, namely those which tangibly affect IA’s processes and methodologies. The majority of global Evolvers have at least intermediate maturity in their use of the following tech tool categories.
For three years, Centrica’s internal audit function has been developing its data analytics capability. Today internal audit is helping the organisation strengthen its second-line-of-defence capabilities advising on the development of a continuous-monitoring analytics process for the human resources team.
“By devising automated second-line capabilities, you avoid the need to have a separate team within that part of the organisation looking at the controls”
Evolvers’ solid foundation gives them the capacity to expand their risk coverage without equally expanding their resources. In addition, they’re seen as more innovative in technology, more collaborative with other lines of defence, and better aligned with stakeholder expectations when it comes to their scope and audit plans. Those characteristics increase their relevance to the organisation and its innovation agenda.