HOST:
Hello, welcome to Getting Started With, where our job is to make your job easier.
On this episode, we are getting started with Agile internal auditing. In today's fast-paced world, internal audit needs to be as dynamic and adaptable as the organizations it serves. Agile provides a framework to do just that.
By the end of this video, you’ll have a solid understanding of what Agile internal auditing is, why it's important, and how you can start applying its principles to enhance your audit engagements.
So, let’s get started!
What Is Agile Auditing?
Agile internal auditing is the application of Agile methodologies and principles to the internal audit process.
Imagine you're navigating a winding river. Traditional internal auditing is like building a dam, effective but time-consuming and inflexible. You plan everything upfront, execute, and then deliver a report at the end.
Agile auditing, on the other hand, is like steering a kayak; responsive, adaptable, and able to maneuver quickly as conditions change. This method uses a series of sprints: short cycles of work with continuous feedback and adaptation. By adopting Agile methodologies, internal auditors can provide more timely and relevant assurance, aligning closely with organizational objectives and risk landscapes.
Why Is Agile Auditing Important?
Consider this: In a rapidly changing business environment, waiting months for an audit report can render findings obsolete. Agile auditing addresses this by delivering insights in real time, enabling organizations to respond promptly to emerging risks.
Imagine a company launching a new product every few months. A traditional annual audit plan might miss critical risks that emerge during the year. This is where Agile comes in.
Increased Adaptability: Agile allows audit plans to be adjusted quickly in response to emerging risks and changing business priorities.
- Enhanced Stakeholder Collaboration: Agile promotes frequent communication and feedback from stakeholders, ensuring audit activities are aligned with their needs.
- Focus on High-risk Areas: Agile's iterative nature enables audit teams to prioritize and focus on the most critical risk areas.
- Faster Delivery of Insights: Agile's sprint-based approach facilitates the delivery of timely audit findings and recommendations.
- Continuous Improvement: Agile encourages a culture of continuous improvement through regular reflection and adaptation of audit processes.
In essence, Agile auditing transforms the audit function from a retrospective evaluator to a proactive partner in risk management.
Core Components of Agile Auditing
Agile Auditing incorporates several key practices:
- User Stories: Define the who, what, and why behind each audit task.
- Sprint Planning: Defines objectives, prioritizes risks, and plans tasks for the upcoming sprint.
- Daily Stand-Ups: Short, focused meetings to discuss progress, obstacles, and next steps.
- Sprint Reviews: Evaluate completed work with stakeholders to gather feedback and adjust as needed.
- Sprint Retrospectives: Reflect on the sprint to identify improvements for future cycles.
While these steps provide a foundation, other Agile techniques can further enhance the process.
- Scrum: This framework uses sprints, daily stand-up meetings, Scrum masters, and sprint reviews to manage work.
- Kanban: This is (?) a visual board to track workflow and limit work in progress.
Here’s a Bright Idea: Using a combination of Agile and traditional methods can provide a balanced and effective approach.
How to Apply Agile in Internal Audit
There are several ways to apply Agile, but here’s a simplified approach:
- Start With the Agile Principles: It's crucial to grasp the fundamental values of the Agile Manifesto, which emphasizes individuals and interactions, working software, customer collaboration, and responding to change.
- Start Small: Don't try to overhaul everything at once. Begin with a pilot audit to learn and adapt.
- Cross-Functional Teams: Encourage close collaboration between auditors and clients to ensure shared understanding and ownership.
- Iterative Planning: Instead of one big audit plan, work in shorter cycles (sprints) with regular check-ins.
- Continuous Communication: Keep stakeholders in the loop with frequent updates and feedback sessions.
Here’s a PRO TIP: Encourage a mindset of experimentation and learning within the audit team to fully embrace the Agile philosophy.
How to Implement Agile Auditing
Transitioning to Agile auditing doesn't require an overnight overhaul. Here's how you can begin:
- Educate Your Team: Provide training on Agile principles and methodologies.
- Pilot Agile Audits: Apply Agile practices to a few audits to test and refine your approach.
- Engage Stakeholders Early: Involve clients from the planning phase to ensure alignment and buy-in.
- Leverage Technology: Use tools that support collaboration, real-time updates, and workflow management.
- Iterate and Improve: Use retrospectives to continuously enhance your Agile audit processes.
Remember, the goal is to enhance the audit function's responsiveness and relevance, not to adhere rigidly to a specific framework.
HOST
Congratulations on completing Getting Started With: Agile Internal Auditing! You now have a foundation for applying Agile principles and practices in your audit work.
There’s much more to learn!
Check out the links below to access helpful resources, including tools, podcasts and training.
