Internal audit — how to drive it effectively and boost the value of financial institution?
Published on Feb 4, 2020

Optimize processes, increase the company’s competitiveness — that’s what we are hearing all the time nowadays. And we will in the future, as new technologies disrupt areas of companies’ operations one by one. Tech innovation has also arrived in the field of audit and thus help organizations to be more responsive to market issues.

Improving flow of information, managing audit recommendations and enforcing their implementation, new digital solutions are currently pouring into what used to be a rather conservative area. Introduction of innovative audit solutions is especially applicable in financial institutions, as they are in constant need of real-time reviewing of their progress to meet market regulations and synchronize information of their multi-level structure.

Financial institutions are extraordinary business entities due to their multilevel organization, as well as always-changing landscape of regulations they are subject to. According to Deloitte Audit Value Survey, 91% of audit committees members agree that audits of their companies’ financial statements reveal things that their companies could be doing differently or better. Moreover, 46% of C-suite executives and 62% of audit committee members say they would miss important information about market or industry insights, inefficiencies or risks if not for the audit. In addition, 79% of C-suite executives and 94% of audit committee members assert that making audit findings from financial statements more transparent within their organizations would improve their companies’ performance.

End of paper or excel sheets era

Traditional methods of collecting, synchronizing and analyzing information no longer fulfill their role. Paper reports or exchanging e-mail correspondence in order to check the progress of works related to the implementation of audit recommendations are inefficient.

Advising or monitoring and periodic reporting on the risks and effects of actions taken, are just some of the processes that are subject to analysis in terms of efficiency and limitations. So far, we used to work on standard tools requiring creation and maintenance of many different working documents for which data is collected by phone, e-mail, or during direct control.

Introducing recommendations into the Excel file after each completed audit and sending to individual units in the organization responsible for their implementation is a very time-consuming process. In addition, e-mail communication, describing applications, typing a task performance in separate documents or manual creation of reports for the management team — all this makes the whole process ineffective and causes irritation or frustration among employees and managers.

Financial institutions before big changes

Globally — for one-third of banks it is the last chance to introduce new business models, improve inorganic growth or carry out a thorough restructuring. Profitability of the industry isn’t growing any more, clients’ confidence in traditional financial institutions is weakening; the increase of sales volumes has already slowed. All this indicates that the financial sector is facing an end to economic conditions.

What does this mean for the market? Potential economic downturn and rising costs of regulatory changes mean that only the capital-strong, cost-effective and innovative institutions have a chance to maintain in adapting to customer expectations.

According to the McKinsey Global Banking Annual Review 2019, the Polish banking sector above all needs the selection of tools that help optimize costs. The basic issue is to find an answer about the current stage of development and about their role in the whole environment. Compared to agile fintechs, the banking sector has a bit of catching up to do.

Growth of GRC solutions market

Modern technologies are racing to respond to the needs of management boards. The report published by MarketsandMarkets on the development of tools aimed at automating the areas of GRC (Governance, Risk, Compliance) shows that in the next few years this market segment will almost double its value. In 2019, it amounted to 31.5 billion dollars, and forecasts indicate that in 2024 we can expect an increase to 51.5 billion dollars.

It is worth to mention, that GRC automation processes in the areas of internal audit and company-wide compliance processes could create additional business value. Why? Processes are flexible, more efficient and could respond faster to the digital disruption created by lots of fintechs.

Advanced analytics improving operation and cost effectiveness

Automation of monitoring of audit recommendations, collecting all the necessary data in one place or direct access to reports — these are just some of the reasons it’s worth to consider implementing applications helping to manage audit recommendations. Holistic knowledge about progress of work and ability to analyze changes in time periods allows for effective risk management.

Systems supporting audit processes significantly improve the current process of monitoring audit recommendations and maintaining data files based on which they were created so far becomes unnecessary. Notifications automatically sent by the system at specified dates streamline the process for both the auditor and the entities implementing the recommendations.

The implementation of tools that allow for appropriate configuration and management of processes allows organizations to effectively support or replace existing manual activities, and thus provide a base for accurate decisions in a relatively shorter time.

Written by

Jan Anisimowicz

Go To Expert Spotlight Page

This Article Tags

All Tags

Our Customers Success Stories

How we boosted a COVID-19 vaccine production by digitally enhancing manufacturing operations

In response to an unprecedented global pandemic, our client – one of the pharma industry leaders- set out to develop, test, mass produce and organize the global distribution of a COVID-19 vaccine.

How to manage national resources to fight COVID-19 in the cloud?

Availability of ICUs is one of the key factors to keep the death toll as low as possible. ICU-M has been one of the reasons Germany has been managing the pandemic relatively well, keeping the number of deaths per 1M population at the low end compared with other EU states.

Bringing a global pharma company out of the dark via a Single Source of Truth (SSOT)

To get the full picture of the global market situation, companies use various sources of data. But to effectively control and steer business activity at all levels on global scale they need a centralized and trustworthy data source.

How to restore effective sales in animal pharma ensuring high quality and reliability of data

Our solutions cover all aspects of customer and sales transactions processing for life science industry companies carrying out their sales activity on many markets in cooperation with wholesalers, distributors and retailers.

Can proper data management help restart a shutdown pharma production plant?

Introducing rigorous quality assurance and management tools into data integration to enable the fastest possible resumption of a production plant’s functioning shut down due to issues with ERP system implementation.

How we helped Boehringer-Ingelheim stabilize their data ecosystem

Data governance, data management and data quality are the basis for the effective integration of IT systems, especially when the organization implements new solutions.

How we made the slow and inaccurate CEESA reporting in an animal pharma company much faster and much more accurate

Abundance of data can have enormous potential for business, but it can also be a source of problems. With large-scale operations – and this is where international animal pharma players operate – automation and advanced analytical methods become essential to building value from data insights.

Improving the workflow of Randstadt’s HR with an employee self-service solution

Low-code is the perfect tool for creating scalable solutions that ensure employee empowerment and self-service for simple activities and tasks. This can significantly relieve HR departments of the overload of administrative matters.

See how we used low-code to enable our pharma client to stay transparent and compliant with European legislation

End-to-end, flexible low-code based solution integrated with all the peripheral systems in company to meet rigorous transparency regulations for the pharma industry.

Replacing Excel sheets with AdaptiveGRC modules to improve internal audit

Emails and Excel sheets are passé. Digital audit needs improved flow of information, managing audit recommendations and enforcing their implementation clearly synchronized on a multi-level structure.

{
Paper reports or exchanging e-mail correspondence in order to check the progress of works related to the implementation of audit recommendations are inefficient.
Tools that allow for appropriate configuration and management of processes allows organizations to effectively support or replace existing manual activities.

Latest Articles

Let`s Talk About a Solution

Questions?We’re here to answer them.

Our engineers, top specialists, and consultants will help you discover solutions tailored to your business. From simple support to complex digital transformation operations – we help you do more.





    We will only use the collected data for the following purposes:

    The Controller of your personal data is C&F S.A. with its headquarters in Warsaw, ul. Domaniewska 50, 02-672 Warszawa, Poland. We ask for your consent to the processing of your personal data collected using the form above. We may also collect other data as specified in our Privacy Policy.