Internal Audit Trends 2015

Additional information for clients

We highlight four additional pieces of information for our clients to be alert to:
  1. There is a very major trend underway that appears to be shifting responsibility for assurance mapping from the Chief Auditor to the Chief Risk Officer. In the 2014 survey this was an emerging trend signalled by Australia’s top audit committee members. In 2015, nearly 20% have assurance mapping led by the CRO, despite less than 50% of respondents indicating they had a CRO in place. Although the sample is subject to interpretation, this is a major shift. 

  2. Despite many respondents indicating they are using data analytics, this technology had advanced rapidly. Traditional computer assisted audit techniques used known fraud and loss patterns to identify and recover fraud and leakage. Today’s data analytics use fuzzy logic and are hypothesis free. They also come from non-traditional areas. Be careful about being complacent in this area as expectations appear to be outpacing what’s being delivered in many cases.

  3. Some Chief Auditors (including myself) have been daunted by the prospect of commissioning an External Quality Assessment and the work involved to get ready. The reality is there is now a relatively easy pathway to self assess and reposition the external review as a certification and affirmation of your work. At a minimum we suggest self-assessing against the IIA standards and reporting this to the Audit Committee every two years. Once this is done, annual certification and periodic confirmation by an independent reviewer is relatively easy.

  4. Although there are quite a few challenges in the area of providing overall opinions over the organisation as a whole, this is a trend that is not going away any time soon. Our advice is to design a process that works alongside or is driven by the second line of defence, and pushes accountability back to management. Realistically any other approach is interesting and often insightful, but is indicative at best.
An extract of the webinar is available for some of the finer points from the research and some discussion between Todd and Mark Harrison from Protiviti. It lasts approximately 45 minutes.