An unusual alliance to internal auditing is the use of Agile Scrum principles. Internal audit has its roots in systematically reviewing and assessing an organization’s internal control systems, policies, procedures and operations to ensure they are effective, efficient and compliant with relevant laws and regulations.
The internal audit function provides an organization with an independent assessment of its risk management, internal control and governance processes. It also helps to identify areas where improvements can be made and provides recommendations for enhancing the effectiveness and efficiency of operations. Internal auditors work closely with management to develop and implement solutions to identified issues and to monitor progress over time.
Agile Scrum is based on iterative and incremental development principles, where teams work collaboratively and adaptively to deliver value to stakeholders. One of the key features of Agile Scrum is the emphasis on the collective intelligence of people, where cross-functional teams are empowered to self-organize and make decisions based on shared knowledge and expertise.
Integrating the Agile Scrum approach into internal audit encourages audit teams to collaborate closely throughout the audit process including stages such as planning, fieldwork, reporting, follow-up and continuous improvement. By working together transparently and flexibly, team members can leverage their diverse perspectives, skills and feedback to improve the quality and relevance of the audit engagement.
Moreover, the Agile Scrum approach to internal audit provides a set of roles, ceremonies and artifacts that promote the collective intelligence of people. For example, the daily stand-up meetings allow audit team members to share updates, identify obstacles and plan the next steps in a collaborative and time-bound manner. The sprint review and retrospective ceremonies enable the audit team to gather stakeholder feedback, reflect on their performance, identify improvement areas and adjust their audit approach.
Internal audit is critical to an organization’s overall governance, risk management and internal control processes. It plays a crucial role in helping to ensure the organization achieves its strategic objectives while minimizing risk. By embracing the Agile Scrum approach, organizations can enhance their agility, resilience, and innovation, and empower the audit teams to work more effectively and efficiently.
Editor’s note: For further insights on this topic, read Thomas J. Bell III’s recent Journal article, “Internal Audits That Create Stakeholder Value: Adopting an Agile Mindset,” ISACA Journal, volume 3 2023.
