It doesn't get much more direct than this, Internal Audit Partner of PWC Australia Jason Agnoletto writes;
"Internal audit isn’t maximising the value it can deliver because in most cases it isn’t leveraging the available technologies that can provide insight and inform decision making."
This powerful statement provides a valuable insight into the established and un-challenged approach to 3rd line defence. 3rd line concentrate on risk and control by assisting businesses identity risks to allow them to establish appropriate controls.
critical challenges faced by internal audit however include a lack of digital and technological skill. All too often we see Internal Audit need to establish digital data capabilities to enable greater insight and potentially population testing in place of sample testing.
the challenge however is all too often highlighted with the same excuses. lack of data quality, varied and disparate IT systems, Jason simply states this with;
"Internal audit functions that aren’t keeping pace with their organisations’ use of technology – and let’s face it, that’s most of them – have some catching up to do. But taking an incremental approach won’t cut it – technology is moving too fast."
Yet there are organisations where Internal Audit have progressed these capabilities. according to Jason, these are the Internal Audit "evolvers"
"The ‘evolvers’ are using collaboration tools to increase organisational alignment and efficiency, data extraction tools and robotic process automation to improve the expediency and coverage of their audits, and analytics, artificial intelligence and machine learning to deliver innovative and valuable insights."
QC-Technology completely agree which is why the QC-Three suite completely digitises three lines.
By centralising Assurance - you fix data accessibility
By interconnecting 1st and 2nd line - you simplify risk and control management
By centralising and providing interconnected issue and improvement - you minimise operational risk burden
By digitising and embedding 3rd line - you evolve your internal audit function
Contact QC-Technology to discuss how a digitised 3 lines of defence solution will evolve your enterprise risk management.