Question

What are some steps you may take to ensure that you develop the competencies necessary to be competitive in the "age of data?"

How may the internal audit functions utilize data to improve audit efficiency and effectiveness?

How may the internal audit function assist organizations in leveraging data analytics?

Answer 1

1. "Age of data": Data is an integral part of today's businesses, whether large or small. Analysing data effectively and efficiently is critical in order to remain competitive in this age. Given the complexity and vastness in the scopr of data analysis, it has become imperative to keep up with newer analytical methods and models, and the need for data literacy is on the rise. Some of the steps in order to develop the competencies to stay competitive in the age of data are as follows:

• Focus on training: It has become very important to focus on advanced levels of training and skill building and problem olving skills
• Increased digital technologies: Better usage of advanced digital technologies increases the amount and accuracy of information available and can be used for various functions such as recruitments, publicity, etc
• Creativity: This is a beneficial competency as it gives humans a competitive advantage over machines, software and automation
• Versatility: This competency is beneficial in jobs where the skill sets are not required to be highly technical or highly qualified.

2. In order to be relevant to stakeholders, internal audit must effectively analyse data. Some steps to ensure that internal audit utilises data to improve audit effiiency and effectiveness are as follows:

• Resources: The internal auditor must ensure that auditing resources are appropriate, sufficient and deployed effectively in order to achieve the approved plan.
• Staff involvement: The I.T. department needs to take the lead and all other departments need to work hand in hand with them, in order correct reporting and evaluation of data
• Foundation: A strong foundation of the internal audit functions needs to be built. The senior management must be good leaders and visionaries; the support staff must be hard-working and competent, and everyone should adhere to professional standards
• Monitoring: Periodic review and monitoring by the internal auditors must be done in order to see if goals are being met and what are the gaps in the systems.

3. Internal auditors are leveraging data analytics as a primary tool for aligning risk with strategy, enhancing performance, driving insights, and reducing the cost of compliance. The ways in which internal audit function assist organizations in leveraging data analytics are as follows:

• Create value: Data is analysed by stakeholders and utilised to improve value and returns by taking appropriate strategic decisions
• Reduce risks: Effective data analysis mitigates the risk of errors and leads to timely responses to control failures and rectify risks
• Reduce costs: Effective data analysis reduces the cost of internal audits and decreases exposure
• Increased efficiency and effectiveness: Better quality of data analysis and controls increases overall efficiency of the organisation as a whole