Doha, Qatar: The Institute of Internal Auditors Qatar Chapter recently held a seminar entitled ‘Continuous auditing-building a better internal audit function’.
The presenters included Jon Taber, Internal Audit Manager at Casey’s, USA, and Alexander Ruehle, an audit innovation evangelist who believes that in a data-driven world, it is human beings who make a difference.
Jon has a Masters in Financial Fraud Investigations from Pfeiffer University and hosts the ‘AUDIT IS FUN’ podcast. Alexander, CEO and co-founder at zapliance, Germany, works on AI and Data Analytics tools for business process improvement.
The key objectives of the session were to define continuous auditing, differentiate it from continuous monitoring, and demonstrate how internal audits can benefit through early detection of abnormalities. Alexander covered future strategies by applying artificial intelligence and advanced data analytics.
Jon defined Continuous auditing as close to real-time review of key processes enabled through a collaborative approach with input from the business. While continuous auditing is IA’s domain, the business is responsible for continuous monitoring.
While an increase in internal audit effectiveness is possible with continuous auditing, improving the internal control environment to meet a business objective is the
benefit of continuous
monitoring.
“There are quick wins by recovery of duplicate payments, making supplier payments on due dates, locating misappropriations, etc. An ounce of Fraud prevention is worth a pound of cure,” said Jon, with stories of unveiling frauds through continuous auditing.
“AI is here to stay. Implement machine learning and automate the review process. It is important to work towards exception-based reporting,” Ruehle stated on the future readiness of auditors. “Every finance or compliance function will have to transform itself several times over the next 10 years.
