Agile internal auditing is a modern approach to internal auditing that is based on the principles of agility. Agile auditing is iterative, incremental, and collaborative, and it focuses on delivering value to stakeholders early and often.
The following are some of the notable advantages of agile internal audits:
- Increased relevance and value: Agile auditing allows auditors to focus on the most important risks and to deliver findings and recommendations to stakeholders in a timely manner. This helps stakeholders to make informed decisions and to improve the organization's operations.
- Improved communication and collaboration: Agile auditing emphasizes communication and collaboration between auditors and stakeholders. This helps to build trust and to ensure that the audit is focused on the most important issues.
- Flexibility and responsiveness: Agile auditing is flexible and responsive to change. This allows auditors to adapt their audit plans and approaches as needed.
- Increased efficiency and effectiveness: Agile auditing can help auditors to be more efficient and effective in their work. This is because agile auditing focuses on continuous improvement and on delivering value to stakeholders early and often.
Functional-level advantages encompass the following:
- Agile auditing can help internal auditors to identify and mitigate risks more effectively: In a traditional audit approach, auditors may not be aware of new or emerging risks until the end of the audit process. This can delay the implementation of corrective actions. Agile auditing allows auditors to identify and assess risks on an ongoing basis, and to provide feedback to stakeholders more quickly. This can help to reduce the organization's exposure to risk.
- Agile auditing can help internal auditors to improve the organization's governance and risk management processes: Agile auditing encourages auditors to take a more consultative approach to their work. This means that auditors work with stakeholders to identify and improve the organization's governance and risk management processes. This can help to reduce the risk of errors and irregularities and to improve the organization's overall performance.
- Agile auditing can help internal auditors to build stronger relationships with stakeholders: Agile auditing emphasizes communication and collaboration with stakeholders. This helps to build trust and to ensure that the audit is focused on the most important issues. It also helps to position internal auditors as business partners rather than simply auditors.
Overall, agile internal auditing is a modern approach to internal auditing that offers a number of advantages over traditional audit approaches. Agile auditing is more relevant, valuable, flexible, and responsive to change. It can also help internal auditors identify and mitigate risks more effectively, improve the organization's governance and risk management processes, and build stronger relationships with stakeholders.
Check-out my Udemy course on the subject:
- The Institute of Internal Auditors (IIA). Agile Auditing: Sprinting to Change: Reimagining Internal Audit in a Digital World.
- The IIA. Positioning Internal Audit as a Trusted Partner in the Digital Age.
- The IIA. Internal Audit Competency Framework: Building Competencies for Success.
- Deloitte. Agile Internal Audit.
- EY. Agile Internal Auditing: A Guide for Internal Audit Professionals.
- KPMG. Agile Internal Audit.
- PwC. Agile Internal Audit: A New Approach to Adding Value.
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- KPMG. "Agile Internal Auditing: Transforming the Internal Audit Process." KPMG Insights (2022).
- PwC. "Agile Internal Audit: A Modern Approach to Internal Auditing." PwC Insights (2021).
- Coenen, Twan, and Pieter Oosthoek. "Agile Internal Auditing: A Literature Review." Journal of Internal Auditing 43, no. 1 (2023): 12-21.
- Boudreau, John-William, and Michel Girard. "Agile Internal Auditing: A Case Study." Internal Auditing and Corporate Governance 17, no. 1 (2023): 22-31.
- Coram, Philip, and Richard Stokes. "Agile Internal Auditing: A New Approach to Adding Value." Auditing: A Journal of Practice & Theory 42, no. 1 (2023): 1-12.
