‘Continuous auditing-building a better internal audit function’ was the seminar topic by The Institute of Internal Auditors Qatar Chapter held recently. The presenters were 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 @ 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 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. The window for not applying AI in business is closing fast,” Dr. Nick Gehrke was quoted in the context of AI or not AI.
Alexander dealt with transforming the value contribution of internal audit function as data-based, people-centric, and context-driven. The mantras were to Develop solutions, Enable business professionals, Convert feedback to knowledge, and share knowledge.
“The hallmark of the seminar was novel ideas and real-life case studies to explain the concepts and break down the benefits that could be achieved in the business. How to obtain data, pre-trained model, prioritized results through innovative tools like ChatGPT, KINME, zapCash was thought-provoking,” Sundaresan Rajeswar, Board Member, said in his closing remarks.
Girish Jain, Seminar Chair, handled the Q&A session, Muralikrishna was tech support, and Aisha Rafeeque liaised with the speakers.
