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Recent Episodes
Embracing Internal Audit Evolution: A Conversation with Michael Drechnowicz, Head of Internal Audit at TK Elevator
In this episode, Michael shares his insights on the evolution of IA in his role as Head of Internal Audit with a major player in the global elevator and escalator industry.
His work demonstrates a shift from traditional finance-focus towards extensive business process coverage, ranging from sales to purchasing and fraud investigations.
We discuss the increasing importance of diversity in global audit teams and how technology, particularly Artificial Intelligence (AI) and data analytics, are transforming internal audit processes.
The conversation further touches on AI's importance in identifying and managing risks, improving process efficiency, and augmenting the learning experiences of junior auditors.
Looking ahead, Michael sees a promising and dynamic future for internal auditors amidst rapid digital transformation.
Guest: Hassan Jan, Senior Audit Manager at Fidelity Canada.
Hassan takes us through his journey as a CPA (Chartered Professional Accountant) who gradually developed a keen interest in data analytics while working in internal audit departments. He shares how he currently uses data analytics and other forms of machine learning to enhance Fidelity Canada's capabilities and practices.
The conversation soon goes into the weeds of internal auditing, as Hassan discusses the use cases for internal audit data analytics. From board reporting to continuous monitoring in different organizations, Hassan presents a broad view of the audit landscape through the lens of data analytics.
We then discuss the potential of large language models (LLMs) and how Hassan aims to implement them into their auditing workflow. From writing audit reports to creating risk and control matrices, Hassan is excited at the possibilities that artificial intelligence brings to the audit table.
We delve into challenges, both present and future, faced in the auditing profession - a key one being data literacy among auditors. As technology makes strides and organizations bank more on data, Hassan talks about the need for auditors to get comfortable with understanding, manipulating, and analyzing data - a trait he calls 'data literacy.'
Hassan also shares his hopes for automation in auditing where technology can pull the exact data required for audit tests. As for emerging auditors, he emphasizes honing prompt engineering skills, or learning how to ask AI the right questions, and creativity, for devising novel audit practices.
Though AI presents us with an exciting future, the discussion does touch upon realistic obstacles such as maintaining a team skilled in both audit domain knowledge and data analytics. Hassan observes an increasing interest in data analytics among junior roles, giving hope to the future.
Hassan also shares some hands-on experiences in visualizing data to detect patterns and trends, underlining how this aids in assessing program effectiveness. The conversation wraps up with Hassan's view on the strategic role of AI in centralizing data warehouses and enhancing operational efficiency.
You can delve deeper into Hassan's thoughts and experiences by tuning into this episode. For any queries or further discussions, Hassan invites listeners to connect with him over LinkedIn.
Maura Hayes-Chaffe is the Deputy Comptroller for Audit in New York City.
This episode has snippets from the full episode recorded for The Performance Audit Report.
Our guest is Cathy O'Neil, author of Weapons of Math Destruction: how big data increases inequality and threatens democracy.
Cathy joined us to discuss critical aspects for auditors to consider, including:
- The human element: why understanding 'for whom an algorithm might fail' is more important than the detailed technical design of an algorithm.
- Algorithm testing: the importance of post-deployment testing to ensure there are no unintended adverse outcomes.
- Setting standards: the need for industry-wide standards so that regulators can ensure there is no bias or discrimination in how algorithms operate.
- Laggers and leaders: the four big industries/domains using algorithms that need to step up audit in their space and how law-makers and regulators are catching up.
- Emerging AI, e.g. language models/chatbots - why trust by users is key, and the pros and cons of using these models.
Links
- Cathy's company, ORCAA
- Weapons of Math Destruction (book)
- This episode's web page: https://www.riskinsights.com.au/podcast/the-assurance-show-64/
About this podcast
The podcast for performance auditors and internal auditors that focuses on data & risk. Hosted by Conor McGarrity and Yusuf Moolla. Produced by Risk Insights (riskinsights.com.au).