Digital transformation and role of Internal Audit

This pandemic has seen a significant rise in the use of information technology and rapid changes in modus operandi of organizations has been perceived like digital transformation.

Digital Transformation is the use of new, fast and frequently changing digital technology to solve problems. It is about transforming processes that were non digital or manual to digital processes.

Internal audit’s impact on digital transformation:

In line with the demands of increasing digital activity, many organizations are working on digital transformation, implementing new technologies and processes to make the business more efficient. As companies embark on this business transformation, internal audit must always be at risk of these technological changes. In addition to the number of tools provided, internal audit will need to help guide the company when considering the following:

  • How will access to data and systems be handled?
  • What controls will be put in place to monitor the performance of these tools?
  • Who will design and monitor the controls?
  • What processes will be implemented to prevent unauthorized access to these new systems and their sensitive data?

Internal audit has the prospect to position itself as a reliable partner for these transformation avenues.

However, when you make a major digital transformation, all areas of the organization will be affected. As business processes are restructured and automated, audit teams should participate in management and board-level discussions. As the Internal audit understands the risks of digitalization and related repercussions and the additional value and opportunity for automation in the organization, it can provide details on the successful implementation of these digital business transformation measures.

As internal audit plays a major role in identifying ambiguities at various levels of the organization, it provides avenues for continuous improvements by suggesting recommendations for each of the processes that will tantamount to improving and sustaining the changes and process. An external party review/ audit results in outcome of unidentified or unaddressed discrepancies that might be present in any functioning system and conclusively leads to incessantly modifying the drawbacks.

All these points in due course lead to efficient adoption and adaptation of the digitalization that the organization has went through.

-Pavitra Jain, Senior Auditor – ShineWing India