In a world where digital landscapes shift rapidly, the importance of technology audits has reached an all-time high.
KPMG International's latest paper, “Trailblazing digital frontiers”, explores how technological advancements are reshaping the audit landscape and what organisations should focus on to keep pace with these changes. With emerging risks from artificial intelligence (AI), cloud computing, cybersecurity, and environmental, social, and governance (ESG) reporting, the internal audit function should evolve to provide strategic value and assurance in a rapidly shifting environment.
One of the most striking findings is that while technology is central to business transformation, only 43% of organisations feel adequately prepared to audit the risks associated with new and advanced technologies. Critical gaps persist in areas like AI and cloud security, where many organisations struggle to fully understand and audit the risks involved. Furthermore, as ESG reporting becomes increasingly important, the report reveals that just 21% of IT internal audit teams are currently engaged in evaluating ESG-related risks.
The report's insights underscore the need for internal audit teams to bolster their capabilities through targeted upskilling, strategic co-sourcing partnerships, and the use of innovative tools like AI and advanced data analytics. However, a mere 4% of organisations are operating at the highest maturity level for technology audits, indicating a substantial gap between the need for oversight and current capabilities.
To address these challenges, the report outlines key strategies for modernising the technology audit function, positioning it as a driver of both innovation and risk mitigation.
To learn how your organisation can navigate the complexities of technology risk and take the lead in audit innovation, download the paper today.
