Local Authority and Head of Internal Audit Virtual Forum
26 June 2024
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Key Takeaways Risk In Focus This session focussed on the results of the Risk in Focus survey which were published on the 24th September. The report is available here. Key points discussed during the session included: Encouraging reflection The importance of the Risk in Focus report encouraging reflection on changes in risks and considering their implications for audit plans and training needs, for example emphasising AI's rising significance. AI Recognising the dual aspect of AI in auditing: the necessity to audit AI within organisations and the potential to use AI to enhance auditing practices. Cybersecurity and Data Security Two top risks for organisations with a need for internal audit to adapt and provide assurance on AI-powered controls and cyber defenses. Business Continuity Despite being ranked seventh in the survey, business continuity was discussed as a critical area intertwined with other top risks like cybersecurity and climate change, suggesting its broader impact across risk categories. Fraud Risk Management The discussion acknowledged fraud as a pervasive risk, embedded in various audits rather than being a standalone focus, indicating a need for continuous consideration in audit engagements. Digitalization and HR Processes Roundtable discussions supporting the development of the report highlighted digitalisation's potential to enhance HR functions and engagement, while also noting challenges related to AI biases and trust issues. Governance and Reporting The recognition that governance is a key risk and that reporting to key committees is a critical input to the effectiveness of the governance process. Clear and unbiased reporting is key. Future Survey Participation and Value Recognition that the value of the survey is derived by the volume and quality of the input from members. All participants in the survey are thanked for their contributions and we hope to increase the volume of responses from the UK and Ireland again next year. Our next meeting HIA and LA Forum | Reflections for Internal Audit following the General Elections will be on 9 October. |
