association of airport internal auditors the future of ... · 11/06/2019 · source: from pwc’s...
TRANSCRIPT
Association of Airport Internal AuditorsThe Future of Internal Audit
June 12, 2019
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Agenda
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1) Audit committee2) Disruption3) Talent4) Technology5) Risk landscape6) Fraud7) Data analytics8) Wrap-Up
The importance of internal audit• Majority anticipate improved global economic growth• But there are also threats to that growth from a CEOs perspective
• Heightened risks
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Source: From PwC’s 21stCEO Survey: The Anxious Optimist in the Corner Office© 2018 PwC
2018 top areas of focus
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Source: 2018 North America Pulse of Internal Audit: The Internal Audit Transformation ImperativeIIA Audit Executive Center © 2018 The Institute of Internal Auditors
Audit committee’s agenda
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Audit committee’s agenda
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1) Is our internal audit plan risk- based and flexible?2) Does it adjust to changing business and risk conditions?3) What has changed in the operating environment?4) What role should internal audit plan in the overall culture of the airport?5) Is the airport sensitive to early warning signs regarding safety, quality
and compliance?6) Have we identified the potential risks that could have the largest impact
to our reputation, strategy and operations?
Disruption
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Disruption – Internal audit is not immune
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Responses to disruption
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Source: 2018 North America Pulse of Internal Audit: The Internal Audit Transformation ImperativeIIA Audit Executive Center © 2018 The Institute of Internal Auditors
Talent
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Talent
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Challenge• Expertise in multiple areas• Experts are in high demand• Talent retention• Talent compensation
Response• Continuously motivating and rewarding talent• Utilizing third parties to help source talent• Develop succession plans• Provide growth and development opportunities
Skill set
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What skills are in demand? How hard are they to find?
Source: 2018 North America Pulse of Internal Audit: The Internal Audit Transformation ImperativeIIA Audit Executive Center © 2018 The Institute of Internal Auditors
Technology
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Technology
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Challenge• Complex environment• High expectations
Response• Need to audit smarter, better and faster• Electronic workpapers• Data analytics• Audit management systems• Automation of analysis
• Artificial intelligence
Risk landscape
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Risk landscape
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Challenge• Risks are changing rapidly• Being ahead of the curve
Response• Continuously assessing risks• Industry expertise• Competitors and their challenges• Headlines and social media• Being involved in implementation stages• Legislative and regulatory outlook
Fraud
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Fraud
How is fraud handled?
1) Does the airport have a response plan in place that outlines key policies and investigation methodologies and techniques?
2) Who carries out fraud investigations?3) Does internal audit identify where the fraud risk is present and does it build into their audit
plan and audit controls in those areas?4) Once fraud has occurred, does internal audit understand how a control failure allowed for
fraud to occur, and how can it be remediated in the future?5) If internal audit investigate the fraud, do they have the proper skill set?
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Data Analytics
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Data analytics
• Risk assessment• Business insight• Creates high quality audit• Diagnose abnormalities• Reduce costs of compliance• Improve efficiency• Elevates stakeholder confidence in internal audit
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How is the IA professional transforming?
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IA data analytics maturity stages
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Challenge the status quo – sail towards the storm
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Challenge the status quo – sail into the storm
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Challenge• Avoiding controversial topics
• Executive compensation• Legal compliance• Corporate culture• Harassment/ misconduct (gender, ethnicity, etc.)
• Looking the other way compounds risks
Response• Follow the risks• Be willing to push on closed doors
SUMMON THE COURAGE TO SAIL TOWARD AND CHASE THE STORMS.
Q & A
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Thank you!
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