The impact of rapid digital transformation and technological advancements, particularly in artificial intelligence (AI), on internal audit practices within the Kingdom of Saudi Arabia is highlighted in a new study by KPMG. The report identifies key technology risks that internal auditors must address, including data privacy concerns, regulatory compliance, and the rise of AI and open data platforms. Internal auditors play a critical role in ensuring adherence to regulations and mitigating risks to data privacy in an evolving business landscape. The shift towards technology-driven approaches is seen as vital for adapting to the changing regulatory requirements and ensuring robust control environments.
Shadi Abuserryeh, Head of Financial Risk Management at KPMG, emphasized the importance of integrating AI-powered controls in core structures to align with Saudi Arabia’s Vision 2030. The rapid digital transformation in the Kingdom is prompting internal audit functions to transition from traditional manual processes to technology-driven approaches. The report underscores the need for internal auditors to stay updated on the latest technological developments to effectively mitigate challenges and ensure effective control measures are in place. Collaboration between internal audit, IT, and risk management units has increased significantly, enhancing audit practice effectiveness.
The transformational effect of technology on internal audit practices presents both challenges and opportunities, with the extent of automation leading to enhanced audit processes during the Covid-19 pandemic. The adoption of remote audits has accelerated the integration of technology to streamline audit processes and minimize manual interventions. Business leaders are encouraged to adopt innovative tools and strategies to mitigate risks and capitalize on opportunities, making internal audit a critical partner in organizational success. Continuous monitoring and real-time data analysis are highlighted as crucial for internal auditors to adapt to the dynamic business environment.
With advancements in AI and machine learning, internal auditors can revamp their practices and leverage data analytics to process larger data files faster while unlocking pervasive insights on logical trends. The report emphasizes the importance of internal auditors embracing technology and adapting to the changing business landscape by leveraging mature IT infrastructures, robust governance frameworks, and advanced tools like data analytics. It is essential for internal auditors to continuously develop technical skills to address emerging technology risks and effectively leverage AI-powered solutions for organizational success.
