Transformation in Internal Audit 4.0

Abstract

An internal auditor is considered as an important person for any business that wish to move forward. Although the overall global economy has improved, risk also has increased. Businesses are faced with rapid changes in technological progress which will change the lifestyle, business model, work style, relationship patterns of people in society that bring both new opportunities and challenges. Internal audit is an important tool to make the operations of the organization transparent and accurate. It is a mechanism that enhances the ability to control, report and monitor performance. Nowadays, internal auditors are involved with management at various levels in order to work out effective and appropriate guidelines and operational methods under increasing competition conditions. The driving goal of "Thailand 4.0" is to step into a high-income country with innovations in advanced technology. Internal auditors must continuously improve themselves to keep up with the fast moving business and the use modern computer tools and IT. Internal auditors must increase efficiency with technology, for example, the application of data analytics which is now considered an important tool to detect and prevent fraud, and most importantly to improve efficiency and reduce risk for financial institutions. There are various types of data that may never have been collected before but with the new digital era, new types of data are being collected on a day to day basis.

Therefore, internal auditors should adjust their auditing practices to be consistent with the Big Data era. There should be sufficient understanding of how Big Data is used in the internal audit process which will be the most beneficial.