Views on Internal Audit, Internal Controls, and Internal Audit’s Use of Technology

Abstract

The Institute of Internal Auditors recently published a number of papers under their Practitioner Survey Series. The series reflects output from the Global Internal Audit Common Body of Knowledge surveys of the internal audit profession. This article is a companion piece that focuses in part on the paper “Staying a Step Ahead—Internal Audit’s Use of Technology,” by Michael Cangemi published in 2015. The paper is based on data from the 2015 global practitioner’s survey, as well as prior survey data, primarily from 2006. To get the most out of this article you should download and read the paper “Step Ahead—Internal Audit’s Use of Technology.” The key findings in the globally focused paper are that the use of technology in the audit process continues to grow, but there is room for improvement. In addition, there has been a major expansion of the use of automated monitoring and the use of data analytics. This article suggests IAs should use these technologies to improve the effectiveness of internal audit (IA) and their contribution to their companies, leading to an enhanced view of IA by the C-suite.

Notes

1. Cangemi, M. P. (2015). Staying a Step Ahead – Internal Audit’s Use of Technology. http://contentz.mkt5790.com/lp/2842/191428/2015-1403_CBOK_Staying_A_Step_Ahead.pdf

2. “Cramming more Components onto Integrated Circuits,” Electronics 19 April 1965. http://www.computerhistory.org/semiconductor/timeline/1965-Moore.html

3. COSO is the Committee of Sponsoring Organizations of the Treadway Committee, formed in part to help define internal control after the passage of the Foreign Corrupt Practices Act. The author of this article was the FEI representative in 2008–2009, when the monitoring guidance was issued.

4. Cangemi, M. P. (2010). The Internal Audit’s Role in Continuous Monitoring. EDPACS, 41(4).

5. IIA Position Paper, “The Three Lines of Defense in Effective Risk Management and Control.” January 2013.

6. IIA CBOK survey (Q89, N = 2,636).

7. Cangemi, M. P., & Singleton, T. (2003). Managing the Audit Function, Third Edition Hoboken, NJ: Wiley & Sons.

Additional information

Notes on contributors

Michael P. Cangemi

Michael P. Cangemi, is author of Managing the Audit Function (John Wiley, 3rd Edition US, Chinese and Serbian translations) and a business advisor. A former CPA, CISA, he was President, CEO, and Director of Etienne Aigner, a leading designer of women’s accessories and President and CEO of Financial Executives International (FEI). He currently serves as President of Cangemi Company LLC, through which he serves as senior advisor and or investor to various companies and manages his other business interests. Michael has had a successful career with a long-term significant focus on finance and technology. His career progressed from accountant/auditor to CAE, to CFO, CEO, and Board member and Audit Committee Chair. He served on the International Accounting Standards Board AB in London and in numerous ISACA and IIA professional capacities, including International President of ISACA, Trustee of IIA Research Foundation and editor in chief of the ISACA Journal (1987–2007). Mr. Cangemi has a significant focus on Continuous Monitoring and Analytics for GRC and Business Process Improvement. He served on the COSO Board, is a Senior Fellow of the Rutgers University Continuous Audit Lab, a member of FEI’s Committee on Finance & Technology and the EDPACS Editorial Advisory Board. He is a Senior Advisor to Oversight Systems, CaseWare RSM, and Instride Footwear Company.