Applying the Agile manifesto and principles to internal audit

In this article series, The Agile Internal Audit Journey, Baker Tilly specialists define Agile, walk through its applications to internal audit and offer lessons learned through case study approaches.

In the first article, Agile auditing: transforming internal audit to add greater value, we discussed the role of internal audit, introduced the history of Agile, addressed some common misconceptions about agile auditing and set the baseline for the journey ahead. Progressing forward in our journey, we explore the Agile manifesto and how Agile principles can be applied to internal audit.

An example agile internal audit manifesto:

We are uncovering better ways of executing internal audits by doing it and helping others do it. Through this work we have come to value:

• Individuals and interactions over processes and tools
• Influential audit reports over extensive audit documentation
• Business owner collaboration over audit report negotiation
• Responding to change over following a plan

While there is value in the items on the right, we value the items on the left more.

In understanding the manifesto, the items on the right are very important, but the focus should be on investing more time, and determination of greater “value,” on the items on the left (in bold).

Uncovering better ways of executing internal audits through agile auditing

The first part of the manifesto focuses on a mindset, a dedication to continuous improvement. It’s the adherence to a culture of not accepting the status quo, not being complacent with the usual audit programs, or utilizing the same audit testing approach just because “that’s what’s worked”. More importantly, it also focuses on helping others. As an internal partner, the goal is not just to execute but to train, develop and help improve internal audit processes. Consider the following key questions about your internal audit department: