{ "docId": "019dd923-5ca1-7489-b63a-2fb218645ceb", "docSlug": "881842e1f116409d", "documentTitle": "2019 Internal Audit Profession Study", "authorId": "PwC", "authorName": "PwC", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "strategy_consulting", "sourceTypeLabel": "Strategy consulting", "presentationDate": null, "orientation": "landscape", "aspectRatio": 1.775, "pageNumber": 15, "pageCount": 22, "prevPage": 14, "nextPage": 16, "slideType": "quote_slide", "function": "illustrate_case", "density": "overcrowded", "nDataPoints": 5, "notes": "The slide is split into two halves: a white left side with text analysis and an orange right side with a pull-quote.", "elementsJson": [ "paragraph", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-5ca1-7489-b63a-2fb218645ceb/15", "deckHref": "/decks/019dd923-5ca1-7489-b63a-2fb218645ceb", "deckJsonHref": "/decks/019dd923-5ca1-7489-b63a-2fb218645ceb.json", "deckAnchorHref": "/decks/019dd923-5ca1-7489-b63a-2fb218645ceb#slide-15", "components": [ { "bbox": { "h": 0.4, "w": 0.4, "x": 0.05, "y": 0.42 }, "kind": "paragraph", "text": "As for automation, executives we spoke with pointed to Sarbanes-Oxley compliance as a logical starting point. Emerging technologies such as RPA, machine learning, and AI provide the opportunity to streamline and automate processes and to gain greater assurance over control effectiveness. For one company, testing to see whether terminated employees' system access rights were being removed in a timely manner was a highly manual process. It required using a lookup function from three disparate data sources for each IT application, which took the audit team 100 hours to test 20 instances of the control. With RPA, a bot was built in 40 hours that performs in seven hours the previously manual processes. By automating many stages of the test except human review, testing hours greatly reduced, and coverage expanded from a sample basis to full populations, which provides greater assurance.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "40609893-17e8-443c-aad0-edaab22d085b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.4, "x": 0.05, "y": 0.16 }, "kind": "paragraph", "text": "When it comes to using emerging technologies within their function, many internal audit functions struggle to find the fit. For example, 54% of internal audit functions are either unsure of or do not plan to use AI within the next two years. Even RPA use is questioned: 49% do not plan to use RPA or are unsure how they will use it. But not Dynamics: 37% use RPA currently, and another 45% plan to do so within two years.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "704af34a-b8b8-424f-a85b-084b8c577acb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.4, "x": 0.53, "y": 0.62 }, "kind": "paragraph", "text": "Vanessa C. L. Chang, Member, Audit Committee, Edison International and Sykes Enterprises", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "976100b5-366a-44de-9df5-b69d80987b02", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.55, "w": 0.42, "x": 0.53, "y": 0.08 }, "kind": "quote", "text": "Algorithms are in themselves their own worst enemy. I don't know whether the algorithm that was built has been tested or whether third parties looked at it. I don't even know whether external auditors were involved. If you use the technology tool to go through contracts and drive revenue, accounts receivable, cash, and deferred revenue, how do I know that the algorithm was correct? Who audits that? Who tests it? And importantly, how do I know it's locked down so that someone can't come in and change it? That's where I get concerned.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1d711a16-1015-4982-98f3-af414d4c9920", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "Algorithms are in themselves their own worst enemy. I don't know whether the algorithm that was built has been tested or whether third parties looked at it. I don't even know whether external auditors were involved. If you use the technology tool to go through contracts and drive revenue, accounts receivable, cash, and deferred revenue, how do I know that the algorithm was correct? Who audits that? Who tests it? And importantly, how do I know it's locked down so that someone can't come in and change it? That's where I get concerned. — Vanessa C. L. Chang, Member, Audit Committee, Edison International and Sykes Enterprises", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd951-dfa2-7185-b3a4-614cd73c8ac2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.23, "x": 0.72, "y": 0.94 }, "kind": "source-note", "text": "2019 State of the Internal Audit Profession Study | 15", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5905e86b-fa11-4aa1-97bd-61ba81ee983b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.4, "x": 0.05, "y": 0.08 }, "kind": "title", "text": "Dynamics are beginning to find ways of using emerging technology in their work.", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "607dbf0c-4c08-412c-ba02-52aa3079c19c", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 21, "from": 6, "beatId": "bf6e277f-21b1-4612-848d-f7a6eb9fd4bd", "arcName": "The Consultant's Gambit", "arcSlug": "consultants-gambit", "beatName": "Solution & Approach", "beatSlug": "consultants-gambit-solution-approach", "evidence": "The six habits of risk functions, upskilling, and emerging technologies", "position": 2, "confidence": 0.8, "parentBeatName": "Turn", "parentBeatSlug": "turn" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }