Each year, many of the 'Big 4' and various other groups release what they consider to be the hot topics or key focus areas for Internal Audit. We have previously spoken about the Risk in Focus 2020 report, released by the Chartered Institute of Internal Auditors in September 2019 (you can read our article here), but in this post, we will compare what the CIIA consider to be the risk areas for 2020, with that of other reports.
So who are we comparing? We have pulled together various reports, and have come to the following:
Chartered Institute of Internal Auditors
KPMG (both general Internal Audit and IT Internal Audit)
PwC
Deloitte
Gartner
It should be noted that this isn't a tidy comparison, with Deloitte and PwC both focusing primarily on the Financial Services industry. Nevertheless, a review of each of the reports identified some key theme's. The diagram below shows the key themes identified from each of the reports:
As the diagram above shows, the most common areas for consideration by Internal Audit functions include:
Governance and risk culture
Cyber Security
New Regulation / Compliance
Business Resilience and Continuity
Transformation and Automation
The five above-mentioned topic areas were included in each of the reports we reviewed from the CIIA, KPMG, PwC, Deloitte and Gartner.
You can review each of the reports by clicking on the images and links below. We have also included each of the areas / topics for consideration within each of the reports.
Chartered Institute of Internal Auditors
Areas for consideration per the Risk in Focus 2020 report by the Chartered Institute of Internal Auditors include:
Cybersecurity & data privacy: rising expectations of internal audit
The increasing regulatory burden
Digitalisation & business model disruption
Looking beyond third parties
Business resilience, brand value & reputation
Financial risks: from low returns to rising debt
Geopolitical instability & the macroeconomy
Human capital: the organisation of the future
Governance, ethics & culture: the exemplary organisation
Climate change: risk vs opportunity
Access the full document here.
KPMG
Areas for consideration per the Top 10 in 2020 report by KPMG include:
Intelligent automation
Data analytics and insights
Technology transformation
Cybersecurity
Compliance and regulations
Distributed enterprise
Culture risk
Corporate responsibility
Protectionism and sanctions
Workforce demographics
Access the full document here.
Areas for consideration per the Insights to take you forward ; IT Internal Audit Planning for 2020 by KPMG include:
Third-party Risk Management (TPRM)
Identity Access Management (IAM)
Intelligent automation
DevOps and Agile Development
SOX testing and GITCs
Business change
Regulatory compliance
Accounting standards changes
IT governance
Disaster Recovery and Business Continuity
Access the full document here.
Deloitte
Areas for consideration per the Financial Services Internal Audit 2020 by Deloitte include:
IBOR Reform
Consumer Finance – motor finance and beyond
Algorithmic Trading
Tax Compliance – FATCA and CRS
Tax Strategies and Responsible Tax
Operational Resilience
Financial Crime
Credit Risk Transformation
Stress Testing
Model Risk Management
Governance Culture in Financial Services
Second Line of Defence
Risk Appetite and Risk Culture
Psychological Safety
Remuneration - Risk and Reward
IFRS 17, ifrs 9
Climate Change
Customer Journeys and Culture
Retail Conduct - Customer Affordability and Vulnerability
Market Conduct
Cyber Resilience
Disruptive Technologies and Digitalisation
Blockchain
Cloud Governance and Security
Data Privacy and GDPR
Please note, this document is focused purely on Financial Services industry.
Access the full document here.
Gartner
Areas for consideration per the 2020 Audit Plan Hot Spots Report Excerpt by Gartner include:
Data Governance
Third-Party Ecosystems
Cyber Vulnerabilities
Data Privacy
Risk Culture and Decision Making
Project Management
IT Governance
Regulator Developments
Organisational Resilience
Supply Chain
Strategic Workforce Planning
Artifical Intelligence (AI)
Access the full document here.
PwC
Areas for consideration per the Internal Audit Planning 2020 by PwC include:
Governance, Accountability and Conduct
Customer Outcomes
Emerging Technology
Operational Resilience, Cyber Security, Outsourcing and Change Management
Insurance-specific themes
Please note, this document is focused purely on Financial Services industry.
Access the full document here.
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