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Adopting digital auditing mindset – Technology matters, but mind shift matters the most

-CA. Mukesh Gupta

Setting the context
The availability of low cost and high-speed internet coupled with innovation, changing customer demographic,
habits and expectations made use of tools and technologies must for the success of the organizations. Irrespective

of the size, scale and nature of the organization, technology is deeply rooted which is providing unique business
opportunities and sharper business models, but posing newer and bigger risks of data privacy, data security, data

storage and retention for the organizations. Technology adoption and digitalization across the globe is necessitated
and fast forwarded by COVID 2019. The digital ways of working have changed the entire ecosystem including the

auditing profession.
Existing challenges for internal auditor

The internal auditors are witnessing massive change of operating model, customer touch points, advance
technology, multiplicity of applications and interfaces, delivery model and regulatory landscape. This has

overwhelmed the internal auditors making auditing highly technical, data driven and complex, though interesting,
challenging and thought provoking.

In pre- digitalization era, auditors were largely expected to know ERP system and rely on physical evidences to
review completeness and accuracy of the transactions and accordingly conclusions were drawn. In today’s time

organizations are using close to 100 applications, depending upon types of organization, level of digitalization and
industry segment, therefore unless these applications are known to and understood by Internal Auditor, they
would neither be able to meet ever increasing expectations of all the stakeholders nor add value to the

organization.

The big question is whether auditor needs to be expert on all the new technologies or something else is required
for auditors to be efficient, effective, and relevant.
Potential changes required by internal auditor

Audit planning
The internal auditor needs to follow different strategy for audit planning wherein substantial time should be

invested in understanding the technology and data landscape which may include the following.
List of core accounting system and legacy systems and mapping of transactions maintained in each of these

systems in discussion with information technology team, process leads and other key process owners.

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