Question

What are some opportunities for internal auditing to use technology to improve the way audits are performed?

Answer 1

In today's business environment, technology is at the forefront of all operations. Internal auditors strive to do more with less i. e. get better results with minimal efforts.

- Sophisticated softwares can be used for data mining. For example, a well balanced sample can be extracted out of a data population by providing defined parameters.

- Automated tools for data analytics to spot trends or deviations from trends. For example, a credit balance for an asset account.

- Automated tools for monitoring audit plan and follow-ups. For example, feeding of audit plans in the system and reminder mails sent to client for providing data.

- Electronic workpapers are already starting to take a place of prominence in internal audits. All agreements, invoice copies, purchase orders or any other relevant document are provided to the auditors in an electronic form.

It is to be noted that relying on technology makes the auditor's work easier and the internal auditor can then focus on the more primary objective i.e. value addition and process improvements.