Internal Audit in the Age of Disruption
by Roger Jon G. Peralta V
To celebrate the Internal Audit Week, our MPTC Internal Audit team submitted a special article for our December issue highlighting how the team adapts during this age of disruption.
MPTC has had firsthand experience in the accelerating rate of change during the pandemic. MPTC’s direction to broaden its vision from tollways to a mobility solutions company became even more relevant and was amplified with the launch of 100% cashless toll transactions. Recent catastrophes and development in political and economic climate, gave emphasis to risks previously thought unlikely to happen.
These changes significantly impact how Internal audit (IA) functions in the organization. Amidst the changing environment, IA is expected to cope with the volatility and identify, anticipate, assess and help in addressing the emerging risks. On top of providing support to a diverse array of risk management and business process improvements, IA needed to provide the Management and the Board the assurance on the effectiveness of internal controls and company processes.
It is therefore necessary to reinvent the IA function to provide improved strategic value to stakeholders and to provide increased cost efficiency to the business.
- Identified high-risk priority issues
- Provided advisory services
- Performed post-crisis reviews
- Assisted the management in monitoring controls
- Plan to have an active role in the business continuity program
- Start to perform assurance engagements to update the Enterprise Risk Management (ERM) Risk Register, Business Continuity Plan (BCP) and Crisis Management Plan (CMP) of the organization
The IA team had to strategize, design and execute the audit plans accordingly to help the organization. The MPTC and NLEX 2020 Audit Plans were aptly adjusted in response to the results of reassessment of risks that have high impact and high likelihood. Partnership with Information Technology, and the different process owners on the sharing of documents online, access to data portals, virtual meetings, helped IA in continuing its audit activities during the year. Moving forward, the use of data analytics and robotics processing automation, the use of remote auditing (CCTVs, data-share, online medium, etc.) are vital tools for IA in order to effectively perform its functions remotely in this new audit environment.
IA heeds the call to adapt to today’s rapidly changing business environment and leverage on the newest developments in order to stay ahead of the curve. To give an old saying a new twist — necessity, after all, is the mother of reinvention.
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