What are the types of internal audits?

Internal audits can include operational audits, compliance audits, financial audits, forensic audits, IT audits, and environmental audits.

What are the key standards in internal audits?

The key standards include independence, objectivity, proficiency, quality assurance, and communication.

What is the risk-based approach in internal audits?

The risk-based approach prioritizes auditing high-risk areas within an organization to focus resources where they are needed most.

What are the 5 C's of internal audit?

The 5 C's are Control, Compliance, Cost, Consistency, and Communication, which are critical for a successful audit process.

How does an internal audit help in risk management?

Internal audits help identify and mitigate risks by ensuring that internal controls are effective and that the company complies with laws and regulations.

Why are people important in Digital Transformation ?

Published on July 28, 2022

Companies are not born and succeed by themselves “digitally”, it is “people” who drive this process.

While focussing on the Digital Transformation of an organization, one must take into consideration the human factor, which is the key driving force for this change.

Technology is an important element of meaningful digital change, but without considering how important the human element is, it will be evident that technology just ends and the medium is the people who bring about this change.

Leaders of organizations need to create a culture where frequent improvements happen and are embraced, and where all the key stakeholders involved, ‘the people’ are open to the ongoing changing process. Everyone must be willing to identify with new and abandon outdated and ineffective processes and replace them with something better.

Without attention to critical cultural requirements, an organization could end up with the latest modern technologies that enable more efficient or effective processes, without truly transforming how the organization operates, its values, and its culture.

People at various designations and levels:

The most important component of a successful digital transformation is building the right team. This team consists of people in various capacities such as:

1. Business/ technology liaisons: They understand business models, customer requirements, prevalent issues, and technology strategy.

2. Evangelists: the employees have to believe the organization and its motive themselves and then they act as evangelists and create excitement.

3. Finance and HR: Critical to the ongoing funding of the project and recruiting the right people for the right job

4. Project managers: They develop detailed projects plans and strategies, keep the projects running as desired, and raise red flags

5. Marketing and Sales: They understand the business goals of the project and the most effective ways to market it to customers and shareholders.

6. IT Teams: They handle a significant amount of the work associated with the selection, implementation, and management of the technologies. They play a crucial role in various facets such as cloud and data architects, system integrators, and engineers.

Digital transformation is a broad undertaking with no singular endpoint. It typically requires multiple ongoing initiatives and organizational restructuring.

Even new technologies such as AI and VR, a human implementing changes, installing updates on machines, or training other personnel on how to properly use the tools and operate will still be required. Even AI is entirely dependent on humans, to train the machines.

Importance of People:

1. People can connect to people: Humans can connect with other humans on a deeper level. People make all the difference. They have emotions, the ability to think and empathize, and create an environment of warmth and belongingness. They can understand what the client wants. You cannot evade the necessity of human nature with any form of technology. The future will be comprised of Man-Machine partnerships.

2. People have the ability to think and create: ‘Thinking out of the box’ is the capability bestowed to humans. Machines and robots can effectively perform only those functions, that are pre-fed programs and lack the thinking ability, at least until now. Designations such as analyst and strategist, require a human element to be successful and effective.

3. People possess talent: each person is unique and they bring their uniqueness into the organization that businesses need to succeed. People are required to think, analyse, suggest, find solutions, and fix the problems that arise while on the go.

4. People come with experiences: People learn with experiences derived over years of working and through skill training programs. Experience is what we look for while hiring an individual. This gives them the cutting edge over others and refines their outlook.

5. Interpersonal relations: only a human can understand human emotions. Only a person can convince the consumers to invest in your business. It is not necessary, that the goal is conveyed once the document is read, many a times a person is required to elaborate and enhance understanding. All this cannot be done by a ‘Siri”

Conclusion:</underline

Throughout the process of digital transformation, changes are inevitable and they need to be accepted. This ability to adapt and acclimatize comes from people believing in the strategy, vision, and culture of your organization. Employees feel the need to be valued in order to perform to the best of their ability.

Employees that are invested and believe in the organization, put in efforts to see it thrive and succeed. They should be given more control and flexibility to operate.

With the established fact that businesses cannot run without people, it is even more important to reconsider that technology cannot be operated without people.

The most important factor of the business “Customer”, is also people. They are the ones for whom we are creating and targeting to make our sales.

Digital transformation is enabled by technology, but led by people.