{ "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": 15, "pageCount": 22, "prevPage": 14, "nextPage": 16, "slideType": "testimonial", "function": "illustrate_case", "density": "overcrowded", "nDataPoints": 5, "notes": "The slide is split into a white left column with analysis and an orange right column with a testimonial quote.", "elementsJson": [ "paragraph", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-5e88-73ef-bd58-1f499855b65e/15", "deckHref": "/decks/019dd923-5e88-73ef-bd58-1f499855b65e", "deckJsonHref": "/decks/019dd923-5e88-73ef-bd58-1f499855b65e.json", "deckAnchorHref": "/decks/019dd923-5e88-73ef-bd58-1f499855b65e#slide-15", "components": [ { "bbox": null, "kind": "callout", "text": "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.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-3be7-728b-ac04-ed946158d95e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.42, "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": "57566cb5-22d3-4275-8058-96c973d5b04f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.42, "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": "92cd18d3-c1c0-4579-8105-5b3363f39e27", "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": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "07e305c2-a004-4549-983a-91550204fb5e", "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": "019dd952-3be7-728b-ac04-f02ae461072f", "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": "12be5904-5a15-4c4f-81d9-49ccd54d116e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.4, "x": 0.53, "y": 0.62 }, "kind": "source-note", "text": "Vanessa C. L. Chang, Member, Audit Committee, Edison International and Sykes Enterprises", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b5f9694f-db74-4260-a220-6280333367de", "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": "62a97e3e-e9ca-40b1-98ab-36b852a97105", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 21, "from": 13, "beatId": "7437aa55-3f50-4239-a8ff-45b0cdfd1f5b", "arcName": "The Consultant's Gambit", "arcSlug": "consultants-gambit", "beatName": "Solution & Approach", "beatSlug": "consultants-gambit-solution-approach", "evidence": "The document outlines the solution and approach for internal audit functions to become digitally fit", "position": 2, "confidence": 0.8, "parentBeatName": "Turn", "parentBeatSlug": "turn" } ], "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 }