If the past has made one thing clear it is that firms look at the future as an opportunity to gain the upper hand by using disruptive business practices, technology-driven concepts and innovative ideation to solve problems. In this kind of a situation, the question that arises is; what is the future of internal audit In the midst of all the other changes happening.
One school of thought believes that like all other variables, even internal audit needs to evolve with the times. Without applying new approaches, an Internal Audit function is rendered behind strategic and technological developments, unable to meet stakeholder needs, and ill-equipped to deal with emerging risks.
Adopting new approaches enables internal audits to identify and address the needs of the stakeholders and it also empowers the auditors to anticipate any potential risks and give appropriate advice against it.
In order to stay useful and relevant, internal audit needs to update, add new features to its offerings and adopt a reformed style of functioning. This is possible by leveraging the experiences gained from the use of previous iterations. Studying, analyzing and comprehending those practices can give firms a fair idea of how the changes they need to incorporate as modifications to the practice.
Developments such as the COSO framework, improved capabilities such as IT internal audit and data analytics, and supplementary guidance are a few examples of the changes that firms are incorporating into their internal audit procedure to boost its relevance in an increasingly complicated business world. In order to make the profession go forward, adapting these practices is not just an option anymore. The firms which don’t pay sufficient attention to this facet of their business are bound for a tough time going forward and should begin to realize the importance of investing their time into this side of their business.