Agile auditing: transforming internal audit to add greater value

Internal audit is in a state of transformation. In many industries, disruptions are bigger, coming faster and require responses that are quicker and more fluid. In this environment, agile auditing can help some organizations adapt and become more flexible. According to the Institute of Internal Auditors’ 2018 North American Pulse of Internal Audit, transformation of internal audit is the only acceptable solution. Chief Audit Executives (CAEs) need to lead the response to disruption with innovative strategies and an equally flexible approach supported by the right talent. To address change and disruption, CAEs need to position internal audit to not only be responsive to change, but to serve as an internal catalyst, challenging the status quo and proactively identifying and focusing on emerging risks. The bottom line: internal auditors need to be more agile.

Setting the baseline – The role of internal audit

While internal audit provides assurance that an organization operates as management intends, the function can also provide valuable insight for improving risk mitigation, controls, business processes and procedures. Evaluating emerging technologies, analyzing opportunities, assessing quality, economy and efficiency, and providing accurate and timely communication represent a fraction of how internal auditors engage on a daily basis. This comprehensive scope of responsibilities provides internal auditors with a broad perspective throughout an organization. That, in turn, positions internal auditors to serve as a valuable resource to executive management and the board of directors in their mission of accomplishing overall organizational strategy, goals and objectives, in addition to strengthening internal controls and governance.

The Scrum Board – A well-known agile auditing tool

Using the scrum board below (a well-known tool of Agile), you can track Baker Tilly’s progress in sharing a series of thought pieces on understanding Agile and its use in internal audit. This scrum board helps us to visualize where we are, where we are going, possible impediments to success and practical applications within internal audit.

Introducing Agile auditing

Agile is relatively new as it relates to internal audit. At its core, Agile is the ability to create and respond to change. It is a way of dealing with, and ultimately succeeding in, an uncertain and turbulent environment. Agile finds its roots in software development. The authors (software practitioners) of the