Page 8 - Internal Auditor M.E. (English) - June 2018

Knowledge Update

By: Vishal Thakkar
Internal Audit 3.0: The future of Internal Audit is now

As organizations race to progressively more going forward, amounts to a failure of imagination.
technology-driven, innovation-oriented, risky, and Internal Audit functions need new skills and
disruptive future, the moot question is, where is capabilities to position Internal Audit to improve
Internal Audit? More often then not, despite ongoing their interface with stakeholders and change
efforts to meet stakeholders’ growing list of needs, traditional thinking, approaches and mind-sets.
the answer is: playing catch-up.
Enablers
Upgrading to Internal Audit 3.0
Digital assets Enablers such as automated core assurance, agile
Robotics, artificial intelligence, and visualization Internal Audit and innovative ways to deliver
tools have already begun to transform Internal Audit impactful reporting are helping Internal Audit
work, and are about to transform it. functions to deliver value and improving the impact
and influence of Internal Audit.
Skills and capabilities
Thinking that the same people operating in the https://www2.deloitte.com/content/dam/Deloitte/global/
same way with the same resources can deliver Documents/Audit/gx-internal-audit-3.0-the-future-of-internal-audit-
the value expected by the stakeholders, let alone is-now.pdf

Understanding the New ISO and COSO Updates

Earlier in 2018, the International Organization reflect the evolution of risk management over the
for Standardization (ISO) published a longed- past decade, recognizing risk management’s move
for revision to ISO 31000, its risk management from a separate and at times departmentalized
guidelines and in June 2017, the Committee activity to an integrated management competency.
of Sponsoring Organizations of the Treadway Also, risk management is not viewed as a periodic
Commission’s (COSO) revised the Enterprise Risk risk assessment and modification activity, these
Management (ERM) framework. This means that two revisions specify that managing risk is an integral
of the most widely used risk management guidance
have been updated within a short span of time. part of decision-making across the organization and
Users need to understand the scope of the changes very critical for meeting objectives and improving
and determine the potential impact on how their performance. These revisions also recognize that
organizations manage risk. risk and uncertainty are important factors when
management form strategy, run operations and
Common Factors deliver project initiatives.
Even though these guidance documents issued by
independent entities, these revisions share common http://www.rmmagazine.com/2018/06/01/understanding-the-new-
characteristics. Both of the revised documents iso-and-coso-updates/

06 INTERNAL AUDITOR - MIDDLE EAST JUNE 2018