In the ever-evolving landscape of organizational dynamics, internal audit functions have been riding the waves of change, striving to fine-tune their strategies to deliver maximum impact. The IA 3.0 framework has been akin to a trusty compass for many of these functions, guiding them through the intricate journey of expanding their roles, remits, and sparking innovation in their methodologies.
Deloitte, a beacon of insight in the realm of internal audit evolution, has pinpointed crucial learnings from the crème de la crème of internal audit functions. These pioneers have championed a culture of continuous improvement and innovation, setting new benchmarks in the field. Let’s dive into the distilled wisdom they’ve shared:
- Speed and agility aren’t just buzzwords; they’re the lifeblood of organizations aiming to stay ahead of the curve. Whether it’s responding to immediate crises or adapting to gradual shifts in the business landscape, a nimble approach is key.
- Big bang approaches, akin to fireworks, may dazzle but often fizzle out quickly. They come with hefty price tags, sky-high expectations, and a misconception of evolution as a mere event rather than a continual journey.
- Haphazard efforts are the sand in the gears of progress. Rather than propelling Internal Audit forward, they can drag it back to square one. Embedding improvements in the daily grind is the way to go.
As we cast our gaze forward, the demands on Internal Audit and the whirlwind of innovation in the profession signal the dawn of Internal Audit 4.0 (IA 4.0). In the vibrant landscape of Thailand, with its economic stimuli like Easy E-Receipts, digital wallets, strategic land bridge projects, and Electric Vehicle (EV) policies, the call for a revamped audit framework is loud and clear.
IA 4.0 introduces three revolutionary features that promise to propel the internal audit function to new heights. By marrying internal audit outcomes with the organization’s purpose, fostering rapid organizational learning and change, and embracing digital technologies, Deloitte envisions a future where Internal Audit is not just a function but a dynamic force driving organizations forward.
- It all starts with purpose, aligning audit activities with the organization’s heartbeat – its purpose, vision, and strategy.
- A new challenge emerges: Incorporating Accelerate into the mix, encouraging Internal Audit to play a pivotal role in organizational learning and swift management actions in today’s fast-paced world.
- The digital embrace is wholehearted, leveraging technology for deeper insights, enhanced collaboration, and a boost in quality and productivity.
- The mantra of continuous improvement stands firm, fostering a culture of agility and digital empowerment through focused and structured enhancement efforts.
- Finally, IA 4.0 lays out the essential principles and building blocks vital for sculpting, nurturing, and evolving the function’s operating models.
For those internal audit functions embarking on or journeying towards excellence, IA 4.0 is akin to a guiding star. It supports these functions from their inception through to the development and refinement of processes, assessing performance, and implementing strategies aimed at digitization, agility, and learning. Additionally, IA 4.0 assists in honing a function’s target operating model and methodologies, crystallizing the foundation of the function’s broad spectrum of operations including positioning, process technology, personnel knowledge, and performance communication, and advocating a bespoke approach for outsourcing and cosource support.
An internal audit function with a clear purpose resonates more deeply; it’s about sculpting value intentionally, embedding this ethos in their role, operating model, and practices. Essentially, IA 4.0 empowers these functions to take deliberate steps towards bolstering their performance, relevance, and impact, epitomizing a function that’s not only purpose-driven but digitally empowered.
With insights from Somkrit Krishnamra, Risk Advisory Leader, and Kaysarin Angkanurakbun, Director, Risk Advisory, the path towards internal audit excellence is not just illuminated but invigorated, ready to embrace the challenges and opportunities of the future.
