Dynamic internal audit trends you should prepare for in 2022

As the role of?internal audit outsourcing in India?is diversifying each year, some trends need to be followed by companies to enhance business performance. So, let’s dwell on these trends and not forget to apply them in our company’s internal processes.?

From the amulet to the driver

To make the transition from a talisman to a driver,?internal audit service providers in Delhi?move from ascertaining facts, focusing on ensuring compliance with regulations and procedures.

Internal audit should investigate the past and reflect on the present, switch to outside-the-box thinking, reflect on the future and focus on the issues of changes in traditional technologies, methods, and approaches in business.

That is, to talk not only about how the company copes with risks, but also, to an equal extent, about the opportunities for growth and development that the company could use.?

Changing risks

A large class of “digital” goods and services have emerged and the use of digital methods of promoting goods and services (digital marketing), as well as the capabilities of artificial intelligence and the growing cyber threats are increasing.

Examples: remote asset management using gadgets with biometric user identification, analysis of consumer preferences (with subsequent distribution of information). Extensive automation leads to the presence of system vulnerabilities that can be exploited to harm.

Internal auditors, therefore, need to re-prioritize their different risk categories, allocating more time and resources to the areas of cyber security and undertaking strategic risk management audits.

At the same time, act in a focused manner and not scatter resources, since “you cannot embrace the immense.”?

Highly dynamic planning

This can be an unforgivable luxury in an era of rapid and dramatic change. Now the trend in internal audit is planning in real-time when changes to plans are made promptly, as new risks emerge.

When planning, internal auditors need to look ahead and not in the rear-view mirror when planning, update plans regularly (once every six months is not enough), leave a reserve of time in the schedule for completing unpredictable tasks that will inevitably arise throughout the year.

Use of modern technologies

Internal auditors should, on the one hand, assess the prospects and risks associated with the introduction of new technologies, primarily digital ones, and, on the other hand, implement these technologies in their daily work.

The technologies of today in internal audit are IA management software, data mining, and continuous auditing.?

Get the necessary skills

Internal audit functions are changing, and the technologies used in internal audits are changing. And the demand for knowledge/skills of internal auditors changes accordingly.

The demand for analytical/critical thinking, persuasion and conflict resolution skills, skills in working with big data, using artificial intelligence applications, knowledge in the field of cyber security is growing rapidly.

At the same time, the demand for communication skills and knowledge of the industry/business remains consistently high in internal audits.

We must understand how big data, the Internet of Things (IoT), artificial intelligence is fundamentally changing and have already changed the world, and how we can and should use this in our work.

This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise.?AKGVG & Associates?does not intend to advertise its services through this.

Posted by

CA Aman Aggarwal

AKGVG & Associates