The audit profession is one of many that is slow to embrace change.  For a profession that focuses on operational auditing (efficiency, economy, effectiveness), many audit shops do not have these E’s optimized.  The subject of Agile Auditing has become an emerging topic in our industry.  Many of the basic premises of Agile Auditing are things that all audit shops should be doing.  Regardless, GoldSRD has taken the basics of Agile Auditing and applied the standards that all GoldSRD attendees are accustomed to: continuous communication, strong relationships, and a transparent audit process.

We can only audit at the speed of risk if we can audit faster and more frequently. Traditionally, internal audit has applied the waterfall project management mentality for projects and the annual audit plan is completed, well annually, with minimal updates.  The audit plan is set, and the focus is on plan completion – not on gathering risk insights.

Traditional waterfall internal auditing is an antiquated model that is slow, in the past, and too rigid.  Audit plans must be flexible, able to adapt to cover critical and emerging risks at a speed that makes sense for any organization. The agile audit methodology creates an audit plan that meets the needs of a modern, risk-based team.

In contrast to the traditional process, agile auditing is a risk-centric approach to developing and executing audits, based on a shorter audit lifecycle from assessment to reporting, which focuses on gaining and sharing insights with management related to the most urgent risks in an organization.

Benefits of Agile Auditing

• Flexible, risk-based audit plan that can adjust to any changing environment
• More efficient annual audit plan process
• More efficient planning individual engagements
• Reduce timeline for audit report issuance
• Increased communication between auditors and management improving the quality of findings and recommendations.
• Avoid surprises and contention with management at the end of the audit.

Course Outline:

1. What is Agile Auditing?
2. Necessary Components
   1. Annual Risk Assessment
   2. Continuous Auditing/Monitoring
   3. Management Support
3. Pillars of Successful Agile Auditing
   1. Highest priority is customer satisfaction
   2. Be flexible in scope/Objectives (limit?)
   3. Frequent formal checkpoints (”Sanity Checks”)
   4. Businesspeople (clients) & auditors cooperating daily
   5. Build projects around motivated people
   6. Face-to-face conversation is best
   7. Progress measured by transparent milestones
   8. Sustainable development pace
   9. Continuous attention to quality
   10. Simplicity (always keep the big picture in mind)
   11. Self-organizing teams (guided by a project plan)
   12. Regular reflection & adaptation (Impact versus “Following the Plan”)
4. Objective-Based Internal Auditing
5. Agile Auditing throughout the Internal Audit Process
   1. Pre-Planning
   2. Planning
   3. Fieldwork
   4. Reporting
   5. Follow-Up
6. Audit Anything, Anywhere, Anytime!
7. Transparent Project Management
8. Servant Leadership