Technology risk and its impact on internal audit

In the context of the rapid digital transformation across Saudi Arabia and the fast-paced global developments in technology – particularly in artificial intelligence (AI), this paper discerns implications of technology on internal audit attempting to highlight common concerns and outlooks and peculiar focus on the Kingdom.

The future of internal audit envisions to move away from manual documentation and testing towards a technology driven approach that leverages AI. However, with the ever-evolving nature of business and internal control environment, internal audit practices need to adapt with ubiquitous changes. These include rapid technological advancements and evolving regulatory landscapes to ensure providing reasonable assurance over the control environment. By embracing technology and adapting practices, internal audit can remain a critical partner in organizational success.

This paper will discuss various risk factors that technology poses for internal audit practice within Saudi Arabia. It will provide a walkthrough approach to addressing risks that are core components of the Kingdom‘s digital transformation program, namely data privacy concerns, use of big data, cloud computing and AI. We will explore the impact of technology on internal audit practices and the emerging challenges and disruptive opportunities they bring for the internal audit function in both the near future and the long run.