Effects of Rapid Technology Advancement (RTA) on IT-audit skills and competencies within the financial services sector in South

Abstract

The Internal auditing profession operates in an era where disruptive technological advances shape business models, productivity, and risk landscapes. Rapid technological advancements such as advanced analytics, robotic process automation (RPA), machine learning, and cognitive intelligence have introduced complexities to business operations and risk management. The ability of internal audit professionals to adapt and contribute effectively in this evolving landscape is contingent upon their technical skills and competencies, requiring continuous improvement in line with International Professional Practices Framework (IPPF) Standard 1230. Falling behind in these competencies could render professionals obsolete and ineffective. While existing literature has explored the impact of these technologies on businesses and the competencies required for internal audit professionals, a notable gap exists regarding the alignment of current IT audit training strategies and skills development plans with the demands brought by the rapid adoption of technologies by businesses. In response to this research gap, the present study employed a descriptive quantitative approach to examine whether disparities exist between IT audit professionals' skills and competencies and the requisites for navigating a swiftly evolving technological landscape. The study's focal point encompassed IT auditors, IT audit practitioners, and Internal Auditors responsible for ensuring IT information systems, managing IT risks, overseeing IT controls and governance, and delivering consulting services within the South African financial services sector. Participant selection employed the non-probability convenience sampling method. Data was gathered through a non-experimental cross-sectional research strategy, utilising an online Microsoft Forms survey as the primary data collection instrument. The analysis of 108 responses collected was conducted using SPSS, with certain elements involving Microsoft Visual Code Studio and Python Pandas. The study's outcomes elucidate substantial disparities, particularly in emerging technologies, where IT audit professionals demonstrated proficiency deficiencies. Additionally, the study underscores the heightened demand for technical skills and knowledge spanning a broad spectrum of subject areas. This research contributes to the understanding of IT audit training strategies and skills development, emphasising the need for organisations to enhance their efforts to bridge competency gaps. The study's findings serve as a call to action for internal audit professionals, organisations, and educational institutions to align their training initiatives with the evolving technological landscape to remain relevant and effective in assuring the state of internal control environments and serving as trusted advisors within their organisations. The proposed model framework for developing a comprehensive curriculum for IT audit skills and competencies, as outlined in this research, provides valuable insights for various stakeholders. It underscores the need for organisations to take proactive measures in bridging competency gaps among IT audit professionals, particularly in the context of rapidly evolving technologies. The framework serves as a foundation for crafting relevant and effective training initiatives catering to the changing technological landscape. Ultimately, this research underscores the imperative of continuous learning and adaptation to thrive in the era of rapid technological advancement.