In a series of articles, we are looking at how we believe internal audit will change in the next five years. We have previously examined the importance of the team, how data analytics and artificial intelligence will drive the digital agenda, one that will become increasingly focused on ESG risks. Looking forward, we will also examine the regulatory reset that will push greater responsibilities on to the board.
But here, we focus on how technological innovation will bring internal audit reports and advice to life, creating greater engagement and wider understanding of the key risks that an organisation faces. And the increasing need to mitigate those risks.
What’s on the horizon:
- Virtual and augmented reality communication tools
- Real-time digital dashboards
- Dynamic data analyses
- The metaverse – a new frontier
Once seen simply as a gimmick, virtual and augmented reality technologies are now moving into the mainstream and will be increasingly adopted by organisations as they seek to visualise data-backed performance measures – KPIs will no longer be static graphs; instead the board will be able to engage and interact with the data, taking deep dives or pulling back to see a fully integrated real-time visualisation of the organisation – a helicopter view, but with no need to leave the boardroom.
There is no doubt that the recent pandemic has forced the pace of change, and the pace of acceptance, of such technologies. Gone are the reams of papers and reports, replaced with dashboards and packs accessed through tablets and other digital media.
And these innovations will open up greater opportunities for IA as their role shifts from backward looking assurance to one that is far more advisory in its outlook.
There will be an increased emphasis on impact – technology will allow auditors to present reports in punchy, easily digested formats, snapshots that will keep their audience focused on the subject. Dashboards will become second nature to both IA themselves and their audiences, whether at board or operational level.
And at the same time, with these tools they will be able to go into far greater depth, using the latest visualisation tools to dive into granular detail, exploit data to its fullest extent to identify outliers and unexpected trends.
All this points towards an IA profession that will have the very latest communications and connectivity tools at its fingertips. IA will need to evolve to ensure it takes full advantage while maintaining its discipline and rigour over the reliability and consistency of the data. Assurance will boost trust in the figures.
Metaverse
We should add a word here about the ‘metaverse’. Long-heralded, and with a stop-start history, it now looks likely that technology has caught up with the aspirations of those who wish to create a wholly immersive experience. But with these opportunities come risks, and IA will need to be at the top of its game when it comes to protecting the business in this new, virtual frontier. Many businesses will be nervous, others may throw caution to the wind in a pioneering spirit, but in the coming years there is no doubt that the metaverse will be making its presence felt in the real world.
Read the other articles in our internal audit series here.