{ "docId": "019dd923-5e88-73ef-bd58-1f499855b65e", "docSlug": "a4428eb0d1c11b31", "documentTitle": "Elevating internal audit’s role: The digitally fitfunction 2019 State of the 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": 11, "pageCount": 22, "prevPage": 10, "nextPage": 12, "slideType": "key_messages", "function": "summarize", "density": "overcrowded", "nDataPoints": 0, "notes": "The slide uses two columns of text to detail strategies for upskilling, including internal training, hiring specialists, and changing organizational culture.", "elementsJson": [ "paragraph", "quote_block" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-5e88-73ef-bd58-1f499855b65e/11", "deckHref": "/decks/019dd923-5e88-73ef-bd58-1f499855b65e", "deckJsonHref": "/decks/019dd923-5e88-73ef-bd58-1f499855b65e.json", "deckAnchorHref": "/decks/019dd923-5e88-73ef-bd58-1f499855b65e#slide-11", "components": [ { "bbox": null, "kind": "callout", "text": "In today’s highly competitive market for technical skills, if internal audit functions fail to continually invest in and reward their people’s digital skills — and provide them with the technology they expect — retention will suffer.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-3be7-728b-ac04-d620723e7e07", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.165, "w": 0.415, "x": 0.048, "y": 0.165 }, "kind": "paragraph", "text": "Investment in upskilling differs significantly between Dynamics, Actives, and Beginners. Dynamics are working with their organisations on digital initiatives to increase internal audit's level of digital knowledge; they're partnering with risk and compliance functions on training investments; and they're building upskilling programmes of their own. As they streamline internal audit operations through technology, internal audit leaders can redirect the generated efficiency to create time for upskilling and innovation.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0179b659-9bae-4cbd-9cbd-43959c875ffa", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.315, "w": 0.415, "x": 0.537, "y": 0.325 }, "kind": "paragraph", "text": "Upskilling may require changing internal audit's philosophy as a profession so it can tolerate more risk. Health insurer Health Care Service Corporation's internal audit function has found success in creating a more innovative culture. \"We have a culture that addresses risk by engaging with new ideas and technologies. This challenges our staff to go outside of their comfort zone and grow,\" reports Robert Lembach, vice president of internal audit. \"Most automation in the department has come from being pragmatic and engaging staff to think about how to solve problems through automation. It motivates them beyond just ticking and tying. We have to challenge our staff because there is risk in doing things the old way: not getting the most value out of our people and constantly recruiting.\"", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3530f186-99e8-46e7-9ef3-ee0530edf55c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.235, "w": 0.415, "x": 0.537, "y": 0.083 }, "kind": "paragraph", "text": "Internal audit also has to have access to very-deep-subject-matter specialists, so Dynamics are working hard to identify people from within who have the aptitudes and adjacent skills to become experts. Auditors with business acumen who have demonstrated mathematics or data skills or who have educational backgrounds in science, math, statistics, economics, and certain other fields that build critical thinking are learning data science. Many Dynamics are creating centres of excellence and turning to outside service providers to fill specialised skills needs — particularly for emerging technologies expertise and for deep business understanding (Figure 5).", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5a9eb56e-2112-453f-bdf0-06f104ca7105", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.165, "w": 0.415, "x": 0.537, "y": 0.645 }, "kind": "paragraph", "text": "Internal audit will always need new skill sets. And though audit skills will continue to be foundational, auditors in the near future will look different than they do today as they blend those traditional skills with digital and business acumen. In today's highly competitive market for technical skills, if internal audit functions fail to continually invest in and reward their people's digital skills — and provide them with the technology they expect — retention will suffer. Dynamics understand that lesson.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ec13a3e4-b472-4513-8bcb-4acd0f3e7f0e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.455, "w": 0.415, "x": 0.048, "y": 0.358 }, "kind": "paragraph", "text": "Nationwide Mutual Insurance senior vice president and chief audit executive, Greg Jordan has taken a creative approach to upskilling his team and the business. He knows that \"what you knew yesterday is outdated today, and what we know today is outdated tomorrow.\" Internal audit is driving increased value on emerging technologies by producing white papers on the risk and controls considerations on these technologies. \"We also have in our plan to produce white papers on cryptocurrencies and blockchain. It will help the business with risks they should be thinking about, and it also educates our own team. For our 100 hours of office-required training, we're going to be more prescriptive and assign more case studies to be more hands-on with learning. We'll also have more mock audits, more activities to move our activities to an automated fashion.\" Jordan believes it's unacceptable to have their business partners using AI and RPA and not have a level of requisite knowledge within the internal audit team.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "eec1db03-4af5-4fee-b719-89cce8d4d919", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "What you knew yesterday is outdated today, and what we know today is outdated tomorrow. — Greg Jordan, Nationwide Mutual Insurance", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-3be7-728b-ac04-da4a61a3aa72", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.177, "x": 0.775, "y": 0.945 }, "kind": "source-note", "text": "2019 State of the Internal Audit Profession Study | 11", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "696bd22a-dd65-4268-9dbd-18a08525b1d9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.075, "w": 0.415, "x": 0.048, "y": 0.083 }, "kind": "title", "text": "Dynamics also invest in upskilling their full team's technology skills to an ever-rising baseline.", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "452fc411-4e3b-4ae0-81b9-b654219f8d76", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 12, "from": 4, "beatId": "b951d22c-8f40-483d-ab28-773fe9dd146a", "arcName": "The Consultant's Gambit", "arcSlug": "consultants-gambit", "beatName": "Evidence & Proof", "beatSlug": "consultants-gambit-evidence-proof", "evidence": "The document provides various data tables and testimonials to support the need for digital fitness", "position": 1, "confidence": 0.8, "parentBeatName": "Evidence", "parentBeatSlug": "evidence" } ], "loops": [ { "to": 21, "from": 3, "name": "Golden Circle", "slug": "11-golden-circle", "bestFor": "Visionary leadership, brand positioning, mission statements", "matchId": "458e061c-0d1d-48b1-8066-03d31fb10721", "evidence": "The document uses the golden circle framework to structure the narrative", "position": 0, "objective": "To understand the importance of digital fitness and how to achieve it", "structure": "The Why (Belief) -> The How (Process) -> The What (Result)", "confidence": 0.6, "description": "Invert the typical pitch by starting with why you exist, rather than what you do" }, { "to": 20, "from": 2, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "7449429c-4f3c-46e0-81d9-3da5af49890b", "evidence": "The document implies the costs of inaction through the use of testimonials and data tables", "position": 1, "objective": "To highlight the risks of not becoming digitally fit", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.5, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }