source : KPMG Internal Audit

 

 

 

As companies continue to navigate rapidly changing business models, regulatory requirements, technology disruption, and more, the opportunity for Internal Audit (IA) to identify and help companies respond to risks is ever-increasing. In fact, IA can play an important role in helping organizations manage the risk environment while also making progress on strategic and growth priorities. To provide the greatest value, IA must find opportunities to challenge the status quo to reduce risk, improve controls, and identify potential efficiencies and cost benefits across the organization.

To help IA functions achieve these goals, we present KPMG Internal Audit: Top 10 in 2020, which outlines areas where IA should focus so it can effectively add value across the organization and maximize its influence on the company.

 

1. Intelligent automation—such as robotic process automation (bots), machine learning, and cognitive solutions—is changing the world of business right before our eyes. New technology that both complements and augments human skills has the power to exponentially increase speed, scale, quality, precision and operational efficiency across organizations. Smart machines now perform activities, and even make decisions, that were previously the domain of humans—and they do it fast, more accurately, and at far greater scale. The days when employees clock in to work just to repeat manual tasks over and over will soon be a distant memory.

 

Given the clear benefits and numerous use cases of intelligent automation, it’s no surprise that it has become a mission-critical initiative. But when embarking on such an important digital transformation project, companies must remain cognizant of the risks and governance responsibilities associated with intelligent automation and applications. A well-designed risk and governance function helps ensure that intelligent automation programs are properly implemented and that associated risks are effectively identified, evaluated, mitigated or, where appropriate, accepted.

 

IA has a critical role in an increasingly digital workplace. Properly defined automation program guidelines can help an organization meet its governance, risk, controls, and compliance requirements and prevent damage to relationships with partners, auditors, and regulators, as well as avoid significant fines.

How internal audit can help:

— Review alignment of Artificial Intelligence (“AI”) initiative with company’s strategic objectives

— Assess suitability of the process for AI implementation and error handling and resolution plan exist when needed

— Evaluate AI investments and outcomes aligned to the objectives of the business and its strategy

— Ensure AI training during User Acceptance Testing to fully comprehend risks and implications

Drivers:

— The digitization of labor is rendering some traditional business operations obsolete

— Industry leaders are maintaining or ramping up investment in innovation, particularly digital labor

— Artificial intelligence, cognitive computing, and robotics are among the top technologies that will-drive business transformation going forward

Date of Input: 13/01/2020 | Updated: 23/01/2020 | nurmiera