Mr Weitz said there was also a perception that while reports of fraud may not have increased in some organisations, this was partly because it had gone undetected due to challenges in monitoring and detection from a more fragmented working environment.
“Internal audit, like any other business function, experienced significant challenges presented by the pandemic in undertaking its day-to-day work,” he said.
“The inability to get onsite to check inventory levels or form relationships and partnerships with business leaders was particularly challenging.
“Many of the participants responded to this through the engagement of new and developing technologies, such as increased use of video conferencing to allow remote working and also through more creative use of technologies such as satellite imagery, open-source intelligence tools and drones to check the existence of assets and assess risk in business relationships.”
From a more strategic perspective, the survey found that the pandemic is placing internal audit in the driver’s seat when it comes to fraud risk management.
Mr Weitz said many respondents talked about how internal audit had been put at the forefront of the operational challenges faced by organisations in the pandemic, with a requirement for continuous assurance and more collaboration with other business functions.
“A number of participants cited more strategic engagement with management from a fraud risk perspective, and more involvement in examining enterprise-wide fraud risk through a risk assessment,” he said.
“As was noted in the 2020 survey, balancing the opportunity of being more involved in the strategic dialogue with the threat of losing independence remained a significant concern of the participants.
“Another significant challenge highlighted by the participants included an increasing gap in skills, particularly with the increased requirements for internal auditors to have more data analytics capabilities and to be involved in fraud investigation.”
The report, Fraud and the Pandemic – Internal Audit Stepping Up to the Challenge, is based on a global survey and focus groups with internal auditors across 24 countries conducted by the Internal Audit Foundation and Kroll.