Insight

Coronavirus and the role of internal audit leaders: The new norm

Take on a simplified continuous risk assessment (CRA) approach to internal audit to navigate and act on risks created due to COVID-19.

Omid Yazdi

Omid Yazdi

Partner, Internal Audit & Enterprise Risk, KPMG US

+1 213 430 2119

Michael A. Smith

Michael A. Smith

Partner, U.S. Internal Audit Solution Leader, KPMG US

+1 214-840-6019

Kreg S. Weigand

Kreg S. Weigand

Partner, Advisory, Internal Audit & Entrprse Risk, KPMG LLP

+1 612-305-5436

The new norm

Although it is still unclear how the world will emerge from the significant challenges that COVID-19 has presented, hopefully more resilient, there are some basic questions that require immediate action and re-calibration from Internal Audit leaders. There are new questions as to how internal audit should focus in light of the COVID-19 impact on the organization:

  • How relevant is the current audit plan and what parts of it require recalibration?
  • How does Internal Audit keep pace with the speed of changes occurring in the business, including changes in the control environment?
  • How does the department pivot to help the organization address new business risks?
  • How does an internal audit team better use technology and data to gain insight?

It appears that we are at an intersection, and there is a viable response to these questions. That response presents itself through Internal Audit taking a more data-driven approach that monitors and takes action quickly to help the organization navigate the risks created due to COVID-19. This can be achieved through a simplified continuous risk assessment (CRA) through use of technology to monitor risks created due to COVID-19 through an internal audit lens. We believe this is a transformational moment for Internal Audit departments. The KPMG Internal Audit team has extensive experience structuring and executing a useful dashboard to enhance the role of internal audit in the organization’s overall response.

The current opportunities to use a simplified CRA approach to address risks created by COVID-19 is not dependent on whether you have performed a data-driven risk assessment similar to CRA in the past. Such an assessment would focus on what is not working as well as what is working in our new reality.