The IIA (Institute of Internal Auditors) has urged auditors not to be deterred by regulatory reforms, but instead to give extra scrutiny to risk in the areas that will be affected.
A report compiled by the IIA found that whilst 66% of internal audit leaders held concerns regarding reputation risk due to faulty communications; only 9% provide assurance in this area outside of the internal audit department’s formal reviews of financial reports. Additionally, 20% of those survey indicated they were not aware of any assurance being provided on non-traditional communication.
The report did, however, find that upwards of 90% of internal audit functions use data analytics to some degree, with more than 4 in 10 using it more than half of the time. However, it was noted that poor analytical designs and procedures led to extra work and inefficiencies.