1. Audit and Risk Indaba
Leveraging technology in capacitating internal auditors
Opening: Shirley: Welcome and position survey - hand over to Mervin. 5 minutes
Opener: Mervin: 5 minutes (Shirley to prep)
Andrew : Detail and emerging tech minutes
Ahmed: In practice: 15 minutes, maybe
Werner : Panel: 45 minutes

2. Agenda Setting the scene The impact of technology Moving forward
Closing
 Emerging tech impact on IA:
1) How IA functions need to advise clients and give confidence on risks and controls as they embrace new tech
2) Evolving the way IA does its work: tools, tech and talent
Takeaways from stakeholder feedback:
- what organisations are doing to use internal audit is being asked to support as they embrace emerging teh
- what IA is doing to fuse together its talent and tech strategy to deliver on this expectation

3. Setting the scene
Andrew

4. 01 02 03 Moving at the speed of innovation
2018 State of the Internal Audit Profession Study-PwC’s 14th survey
The pace of innovation is accelerating and risk professionals face the growing challenge of helping their organizations ensure effective processes and controls exist while not hindering progress.
What you can be doing now
2,500+ survey respondents, including CAEs, CFOs, Audit Committee members, and more than 1,200 stakeholders across 92 countries
Assess where Internal Audit stands with its tech-enabled foundation
More than 50 stakeholder and CAE interviews conducted across North America, Europe, Australia, Africa and Asia to gain further insights. 01 02 03
56%
of Internal Audit leaders are concerned that failing to improve Internal Audit’s technology adoption will diminish its value to their organization
North America
Europe
Australia
Africa
Asia
Evolvers
Internal audit functions that are most advanced in their technology journeys are creating departments where technology-enabled talent is the norm.
Innovate and be revolutionary
whenever possible
Fuse technology and talent into a single strategy
Cover the high level findings
Lead into discussion about emerging tech, how IA needs to up its game to understand, integrate, embrace emerging tech

5. What we explored in our survey
Respondents who call their organizations more innovative than those of their peers and consider their risk management programs to be more effective, are 3X more likely to anticipate revenue growth than their less-effective and less-innovative peers.
Internal Audit functions who understand innovation’s impact on their organizations’ risk profiles but also fully embrace that impact themselves continue to increase Internal Audit’s relevance and reinforce the function’s role as a trusted advisor.
Cover the high level findings
Lead into discussion about emerging tech, how IA needs to up its game to understand, integrate, embrace emerging tech

6. The impact of technology
Andrew

7. Emerging technology Extent of technology
Constant change, increase, improvement \
Challenge for us to stay relevant, informed and up to date

8. The essential eight emerging technologies
Robotics
Internet of Things
Augmented Reality
Virtual Reality
Blockchain
Artificial Intelligence
3D printing
Drones
 Emerging tech impact on IA:
1) How IA functions need to advise clients and give confidence on risks and controls as they embrace new tech
2) Evolving the way IA does its work: tools, tech and talent
Takeaways from stakeholder feedback:
- what organisations are doing to use internal audit is being asked to support as they embrace emerging teh
- what IA is doing to fuse together its talent and tech strategy to deliver on this expectation

9. User case 1: Data Analytics - Halo
100,000
Installed instances
42 est. average hours prior to Halo
70% est. cost saving
>50 countries
60% est. hours saving
8 est. average SDC hours with Halo
Halo automates the analysis of all financial transactions for fraud and error

10. Use case 2: Artificial intelligence – GL.ai
What is GL.ai?
ML and AI tool that uses judgement to predict fraud in all financial transactions

11. Use case 3: SDCs, CoEs and RPA
Service Delivery
Centre
Centre of
Excellence
Delivery centre to designed to repeatedly deliver common tasks at low cost
Centre containing deep skills in a highly specialized area

12. Yet the use of technology remains limited
PwC SOTP

13. Why are practitioners not making greater use of technology?
Not enough technology skills
Generalist IT auditor not deeply specialized
Investment/ budget constraints
Don’t understand how to
Fear
No burning platform
Technology oversold
Failed initiatives
Poor data quality
No time
Relationship with IT and access to data

14. How do we move forward
Andrew

15. Strategic Shift Strategy People Tools Methodology Culture shift
Need to be more tech savvy
Access to deep technical skills
Strategy
People
Tools
Methodology
Leadership support
Roadmap – quick wins
Technology plan

16. Change management Training on how to use tool
Training – tech use cases
Regular peer group learning
KPIs to drive time saving
KPIs to drive more insights
KPIs to drive use of tech

17. Evolvers – Successfully fusing technology & talent
90%
Technology
Talent
73%
Use advanced technology collaboration tools and rate well in
cost optimization
Invest specifically on technology training
82%
72%
Evolver Traits
Have correct mix of technology, operational and financial skills
Utilize analytic and monitoring tools
28%
66%
Have team members with advanced technology skills
Experiment with predictive risk indicators
 Emerging tech impact on IA:
1) How IA functions need to advise clients and give confidence on risks and controls as they embrace new tech
2) Evolving the way IA does its work: tools, tech and talent
Takeaways from stakeholder feedback:
- what organisations are doing to use internal audit is being asked to support as they embrace emerging teh
- what IA is doing to fuse together its talent and tech strategy to deliver on this expectation
Source: PwC

18. What does this mean for risk and internal audit?
3 questions for us 1 2 3
Are we developing the skills to be able to address the needs of our clients?
Capabilities
Are we suitably involved with the emerging technology ambitions of our organization?
Involvement
Are we developing new approaches for this technology and embracing the use of the technology in the way WE work
Embrace

19. Closing comments
Combined assurance - dont have equal capabilities so has to be a combined assurance.

20. Moving at the speed of innovation : Actions to take now
Risk Management
Internal Audit
We need to add something on combined assurance

21. Innovation, effective risk management and growth go hand-in-hand
The bottom line
Innovation, effective risk management and growth go hand-in-hand

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