The Digital Transformation of Auditing and the Evolution of the Internal Audit

Description

The main objective of this book is to provide both academics and practitioners with a global vision of the evolution of internal auditing in a fast-changing business landscape driven by digital transformation. Digital transformation has been first associated with the emergence and the development of new technologies (artificial intelligence, blockchain, cloud computing, data analytics, predictive analytics, robotic process automation, IOT, drones etc.). Beyond the technological dimensions, this transformation has several impacts on businesses, organizations and processes and raises several questions for auditing activities. This book explores how digitalization not only has an impact on the audit environment, but also on internal audit practices and methodologies, information technology (IT)/information system (IS) audit, IT governance and risk management. The auditing profession also has to face the same challenges. Auditors should develop new skills. To continue to provide high quality service in such an environment, the methodologies, the process and the tools used for conducting an audit have progressively changed from those applied to the traditional audit. The internal audit has gradually moved from a monitoring – passive function – to a strategic and dynamic function in organizations. Finally, the book also investigates the impact of the COVID-19 pandemic on internal auditing. The author highlights the need for a new vision and renewed forecasting tools. The post-COVID-19 business and corporate world has changed. Internal audit, as a key strategic function, must evolve too. Cover Half Title Series Page Title Page Copyright Page Table of Contents List of figures List of tables List of exhibits List of appendices Introduction 1 A historical perspective of internal audit: the impact of digital transformation Introduction The emergence and development of the audit function The origin of auditing… and of auditors What is internal auditing and their main related missions? Relationship between internal audit and internal control Digital transformation: main insights From digitization to digital transformation The main layers of digital transformation The impact of digital transformation on internal auditing: what is at stake? Current trends in the audit industry The evolution of internal audit function in large companies in the context of digital transformation The development of IT audit The broader scope of internal audit IT ( internal) audit versus audit IT The development of the IT audit universe The ever-rising importance of internal auditing and IT audits in the literature Research on internal auditing The identification of specific factors for IT audit Conclusion Questions for discussion 2 Aligning internal audit with the organization’s strategy Introduction Strategic planning and internal audit Back to basics Links between strategic planning and internal audit A renewed debate on strategic planning Strategic planning, BSC, and internal audit The initial BSC concept Linkages between the IT BSC and alignment The BSC perspectives for internal auditing? From strategic planning to strategic alignment Strategic IT/ IS alignment: definitions Alignment theoretical frameworks Internal audit and strategic IT/IS alignment. What lessons for practitioners? Challenges in achieving alignment in practice Internal audit and alignment: a complex assignment? Conclusion Questions for discussion 3 IT governance, risks, and compliance Introduction Corporate governance: a historic debate An old theoretical debate Corporate governance and competitive advantage Various corporate governance practices Linking corporate governance to IT governance Main insights of IT governance (ITG) in the literature review IT governance: definitions ITG and main theoretical-related issues Perspectives for future research ITG frameworks and professional practices ITG at a glance Various international and national ITG frameworks Risks management and compliance Toward a life cycle of ITG and/ or a virtuous circle? ITG and risks management: the evolution of the COBIT framework The development of compliance requirements Conclusion Questions for discussion 4 The evolution of auditing methodologies Introduction The “ traditional” IT audit approaches The multiple- level methodology The breakdown according to the scope of auditing mission Digital maturity model in internal audit The impact of the digital transformation: the emergence of digital maturity model ( DMM) DMM and internal audit: toward continuous auditing methodology The evolution of IT audit methodologies driven by digital technology The risk-based methodology: several approaches IT governance audit methodology Toward the development of agile internal and IT audit What is agility? Agility and internal & IT audit Conclusion Questions for discussion 5 The evolution of IT/IS audit activities in the digital era: the impact of technology-enabled internal audit Introduction Technology adoption models in auditing The key role of information system The emergence and development of technology adoption models Auditing activities in an increasingly IT environment Beyond traditional audit techniques: auditing with new technologies Adding value with technology Toward data-driven internal audits The strategic move to automation: the development of RPA RPA: a bridge between legacy and modern cloud applications The use of RPA in auditing: the end of the swivel chair work? The impact of blockchain technology (BT) on auditing Auditing of new (or emerging) technologies Auditing algorithmic decision-making and artificial intelligence (AI) solutions RPA: auditing a bot environment Auditing blockchain technology (and its applications) Toward augmented auditors: the emergence of auditors 4.0 Conclusion Questions for discussion 6 The impact of the COVID-19 crisis on internal audit function and related activities Introduction The multidimensional impact of crisis An analytical framework for crisis analysis The identification of country and sector risks “Country Risk” indicates the average risk presented Prospective and strategic foresight Post-COVID lessons: an historical event with unknown consequences How to foresight and forecast crisis? The impact of the pandemic crisis The world thereafter… and the new normal The evolution of the risk landscape for auditors The Big Four accounting firms’ and other technology-IT services companies’ vision The impact of the COVID-19 pandemic: what are the future trends of internal auditing? The use of technology to conduct audits Employing innovative means of gathering and analyzing evidence Greater reliance on technology for basic communication A continuous approach to assessing risks The hybrid workplace mode Conclusion Questions for discussion Index