In the era of digitization and Automation, like any other business unit in an enterprise, Audit also is fast moving towards the Digital Route. The other functions already have their tools and are running most efficiently and Audit for no reason can afford to lag behind. Audit, as a function that keeps the organization run in the right direction, in fact; has to be ahead; quiet ahead! CAEs (Chief Audit Executives) and Audit committees have started thinking in this direction of late and rightly so.
Why does Audit need digitization? Is audit not effective the way it is functioning right now? What has changed over the last few years, that calls for such an initiative?
All other business units in an enterprise, are moving fast in the path of digitization and hence have increased their pace considerably and so needs to the case for Audit.
Audit as such is a function looking more towards what has already happened, due to various reasons audits happen at a cycle and this may cause further delay in looking in to what needs to be. Currently there is a considerable time lag between the individual audits and the reporting and further lag towards a consolidated report where the audit is distributed in nature. This deprives the CAE or AC the much needed visibility in to the possible risks in the system and therefore definitely delays any corrective action.
With digitization, audit as a unit would run ahead of time from planning to execution to reporting and MIS, the function would move forward by leaps. An effective Audit function is what an enterprise looks for in its pursuit towards larger volumes and higher growth as Compliance is not a choice; it is a MUST!