PERSPEKTIVE RAZVOJA I IZAZOVI FUNKCIJE INTERNE REVIZIJE U ERI DIGITALNE TRANSFORMACIJE POSLOVANJA
DEVELOPMENT PERSPECTIVES AND CHALLENGES OF INTERNAL AUDIT FUNCTION IN DIGITAL BUSINESS TRANSFORMATION ERA

Summary/Abstract: Modern digital economy era is characterized by new concepts and trends, that are completely changing business models, tasks and transactions performance, making business decisions and overall business management of companies’ governance structures and other stakeholders, which are connected with the process of digital business transformation. In that sense, process of company’s digital business transformation should be appropriately planned and implemented by governance structures and conducted by all company’s employees. In that process, the key role has internal audit function, so, today, internal auditors had become important advisory partners of governance structures in the process of ensuring an effective, efficient and successful business management where beside the traditional, mandatory engagements of internal audit function, assurance services, growing significance are getting non-mandatory, consulting services and providing insights. The goal of this paper is to give a review of the most important new and innovative information and communication technologies, connected concepts and trends in companies’ business that have or, in the near future, will have greater impact on internal audit function’s work. In that sense, technology should be looked at two aspects, as a part of the system in which internal auditors are conducting their activities and as an instrument and tool by which they are performing their assignments. In this paper is also analysed and shown how these new information and communication technologies are changing the internal audit process and improving its effectiveness, so it can innovate and establish enhanced audit approaches in regard with providing risk based assurance, consulting services and providing insights. Thus, the impact of technology on internal audit activity has double effect, because, on the one side, technology affects on digital business transformation of a company where the object and subject of internal audit are changed, and on the other side, new technologies change the operation mode and the process of internal auditing. In order to accomplish all tasks, be effective and contribute in the process of digital business transformation, the imperative is that internal audit function must digitally transform its process, educate and train internal auditors. However, this is not a simple process, because relevant studies have shown that majority of internal audit functions are still followers or observers who are taking notice and following evolvers in technology adoption at a slower pace or do not still use new technologies in any sense in their process. Causes for this situation can be found in audit resources limitations, governance structures misunderstanding of the importance of digital business transformation for their company and internal audit function. Thereat, the key problem is the lack of internal auditors ‘digital’ knowledge, skills and abilities in the industrial revolution 4.0. In the end, it can be concluded that in front of modern internal audit functions around the world are set numerous challenges that are constantly evolving. In order to accomplish its assurance and advisory role and become strategic partners of governance structures, internal auditors need to be proactive leaders in the whole company with the emphasis on their professional education and training.

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