Dynamics, uncertainty, complexity and strategic adjustment pressure demand a reorientation of the audit process architecture. In this context, this presentation provides solutions for Internal Audit to deliver a customer-centric value proposition for the enterprise as a whole.
The reinvention of the audit strategy begins where the classic technical and planning procedures of the audit orientation reach their limits. With the increase in complexity and dynamics of the corporate framework conditions, past updates become unsuitable as a basis for auditing development. Organisational routines prevent necessary goal decisions and well established audit processes lead to unproductive slowness.
Digitalization is changing almost all areas of life with enormous force. Consecutively these radical revolution processes cause an unforeseeable further development of the business models of companies. Their success increasingly depends on their digital fitness as well as on a holistic transformation of the strategy in accordance with their corporate culture and process architecture.
Future successful companies no longer define themselves exclusively through a product or a brand. They offer complete systems consisting of products, services and networking options in which different service areas are linked together in a service-oriented, eco-friendly customer environment. In this economy of integrated services, companies are successful if they optimally combine the capabilities of different service providers and producers with each other and with the needs of their customers, if they have a high innovation speed, if they automate their processes in the best possible way and intelligently and if they collect, analyze, process and distribute data according to their business model.
The demographic development makes the Damocles sword of the shortage of skilled workers appear to hover over all company departments. It also makes us in Internal Audit aware of the special importance of human resources. In order to survive in the War for Talents, the internal audit department must be given a stronger brand image. This requires a more intensive examination of future competence requirements derived from a demand-oriented audit service portfolio.
The discontinuous development of the corporate framework conditions is changing the attitude towards auditing work and the demands placed on our assurance services. This leads to changing demands on working conditions and work design. This development has led to more flexible workplaces and working hours, individualisation of personnel instruments, opportunities for participation in important organisational auditing decisions with and without technical possibilities beyond company co-determination, and balance concepts for living and working.
Taken in their own right, each of these developments is already complex and dynamic enough; against the background of the existing interactions and mutual reinforcements, they lead to what is increasingly referred to as VUKA Environment.
