Embrace technology to enhance capabilities, internal auditors told

 

AICB chairman Azman Hashim said it is important to understand the ethical implications of AI and ensuring the integrity of data sources. (AICB pic)

PETALING JAYA: The Asian Institute of Chartered Bankers (AICB) says internal auditors must embrace the technology frontier to improve their practices amid the rapidly evolving banking industry and regulatory environment.

AICB chairman Azman Hashim said technologies, such as artificial intelligence (AI) and data analytics, are instrumental in transforming internal auditing.

These technologies enable auditors to analyse vast datasets and understand business drivers sustainably, he said.

“Internal auditors can also now integrate machine learning algorithms with existing audit processes and more discernibly identify patterns and anomalies indicative of fraudulent activity,” he said in his welcoming address at the Bank Audit Conference 2024 on Wednesday.

“This not only helps improve exception detection rates, but also considerably reduces false positives and, in the process, increases operational efficiency.”

However, Azman said it is important to understand the ethical implications of AI and ensuring the integrity of data sources.

“No doubt, the internal auditor of the future must be as adept in digital literacy as in financial scrutiny, prepared to lead in a tech-centric audit landscape,” he said.

Auditor-General Wan Suraya Wan Mohd Radzi, who gave the keynote address, called on internal audit teams to leverage technology to improve efficiency, gain insights, and conduct precise and targeted audits.

“Technology will be at the forefront of internal audit. Artificial intelligence, machine learning, and data analytics will revolutionise the way audits are conducted,” she said.

“By harnessing the power of technology, internal auditors will be able to identify emerging risks in real-time and proactively mitigate them.” - FMT