Embracing Internal Audit Evolution: A Conversation with Michael Drechnowicz, Head of Internal Audit at TK Elevator

In this episode, Michael shares his insights on the evolution of IA in his role as Head of Internal Audit with a major player in the global elevator and escalator industry.

His work demonstrates a shift from traditional finance-focus towards extensive business process coverage, ranging from sales to purchasing and fraud investigations.

We discuss the increasing importance of diversity in global audit teams and how technology, particularly Artificial Intelligence (AI) and data analytics, are transforming internal audit processes.

The conversation further touches on AI's importance in identifying and managing risks, improving process efficiency, and augmenting the learning experiences of junior auditors.

Looking ahead, Michael sees a promising and dynamic future for internal auditors amidst rapid digital transformation.

Maura Hayes-Chaffe is the Deputy Comptroller for Audit in New York City.

This episode has snippets from the full episode recorded for The Performance Audit Report.

Our guest is Cathy O'Neil, author of Weapons of Math Destruction: how big data increases inequality and threatens democracy.

Cathy joined us to discuss critical aspects for auditors to consider, including:

• The human element: why understanding 'for whom an algorithm might fail' is more important than the detailed technical design of an algorithm.
• Algorithm testing: the importance of post-deployment testing to ensure there are no unintended adverse outcomes.
• Setting standards: the need for industry-wide standards so that regulators can ensure there is no bias or discrimination in how algorithms operate.
• Laggers and leaders: the four big industries/domains using algorithms that need to step up audit in their space and how law-makers and regulators are catching up.
• Emerging AI, e.g. language models/chatbots - why trust by users is key, and the pros and cons of using these models.

Links

• Cathy's company, ORCAA
• Weapons of Math Destruction (book)
• This episode's web page: https://www.riskinsights.com.au/podcast/the-assurance-show-64/

About this podcast

The podcast for performance auditors and internal auditors that focuses on data & risk. Hosted by Conor McGarrity and Yusuf Moolla. Produced by Risk Insights (riskinsights.com.au).