KUALA LUMPUR (Oct 29): Internal auditors need to embrace technology, such as artificial intelligence, robotic process automation and advanced analytics, to stay relevant.

"Staying Relevant in a Digital Landscape" is the theme of the Asian Confederation of Institutes of Internal Auditors (ACIIA) Conference 2018 that kicked off today, hosted by the Institute of Internal Auditors Malaysia (IIA Malaysia).

IIA Global chairman Naohiro Mouri said in his keynote speech at the event that for a business to remain competitive, it must first adapt to the rapid technological advancements.

"The next step is to synergise technology with the business to educate the audit committees and board members, to thereon improve the oversight of internal audit functions.

"With technology such as artificial intelligence, robotic process automation and advanced analytics having a direct impact on internal audit, there is an urgent need to address the increasing technology skills gap in the internal audit profession and prepare them for the tech-driven business environment," he said.

ACIIA conference chairman Philip Satish Rao said internal auditors need to keep up with a growing number of businesses that are taking the digitalization route.

"Being digital is the way businesses are moving forward, and if the internal auditors do not change the [way their audit is conducted] to reflect the changing digital landscape, then they would probably be irrelevant.

"To stay relevant and safeguard the eminent role of the profession, the internal auditors of today and tomorrow need to be digital-savvy and technically competent to manage digital risks and to provide valuable insights to the organisations," he said at a news conference in conjunction with the event today.

Mouri explained that the roles and responsibilities of the internal auditor would not change, but the methodologies they use need to adapt to the technology-savvy consumers of today, who do their day-to-day banking and purchasing of goods online, and the businesses which respond to the needs of these customers via online platforms.

"If we don't audit these [online] processes or if we don't understand them, we become irrelevant. It's about us changing the way we do things. What we do does not really change; we still continue to audit and provide assurance, insight and advice. But how we actually audit is going to change," he said.

IIA Malaysia president Alan Chang Kong Chong said that for Malaysia, it is a still work-in-progress for internal auditors to get on the digitalization bandwagon.

"For Malaysia the adoption of technology by businesses is still ongoing, so for internal auditors, it is a journey [in embracing these technological changes]. However, internal auditors need to be mindful on the tools, techniques and solutions available," he said.

The two-day ACIIA Conference 2018 marks its largest to date, with over 1,200 participants including policy makers, industry leaders, board members and internal audit professionals from across the region.

Notable speakers at the event include AirAsia X Bhd chairman Tan Sri Rafidah Aziz, former auditor general of Malaysia Tan Sri Ambrin Buang and Invoke Malaysia founder Rafizi Ramli.