Cybersecurity, IT Governance and Emerging Technology are Shaping IT Audit Plans in 2018, According to a New Survey from Protiviti and ISACA

Technological changes give rise to new risks; drive demand for more advanced auditing technology, skills, knowledge and resources

MENLO PARK, CA – April 5, 2018 – IT security and privacy, IT governance and risk management, regulatory compliance, emerging technology and cloud computing are the key issues impacting IT audit plans in 2018, according to a just-released benchmarking study from global consulting firm Protiviti and ISACA, a global association helping individuals and enterprises in the IT audit/assurance, governance, risk and information security space.

The seventh annual survey of more than 1,300 chief audit executives (CAE), internal audit professionals and IT audit vice presidents and directors worldwide found that most audit plans for 2018 are impacted by the challenge of cybersecurity.

Yet more progress is still needed, as one in five organisations, on average, is not including cybersecurity in its audit plans. The most commonly cited reason is a lack of qualified resources, specifically people, skills and/or auditing tools. Such shortcomings need to be addressed with urgency.

“Organisations are putting themselves at risk by not planning for and addressing existing and evolving cybersecurity threats within their audit plans,” said Andrew Struthers-Kennedy, a Protiviti managing director and global leader of the firm’s IT Audit practice. “Planning for cybersecurity not only helps with risk management, but also helps address gaps that can come from digitalisation. As more businesses accelerate the pace of technology transformation and increase their reliance on third-party vendors as part of their digital transformation efforts, the number and severity of cybersecurity risks is increasing.”

“Given the increased focus on digital transformation within organisations, it’s important for IT auditors to be involved throughout the entire technology project lifecycle to ensure policies and processes are put in place to mitigate risk,” said Theresa Grafenstine, chair of ISACA’s board of directors. “IT audit leaders looking to become more engaged within their organisation’s major technology projects have to build credibility with executive management teams by demonstrating the value that the IT audit function provides.”

Top Technology Challenges

Asked to identify their top technology challenges, IT audit leaders and professionals cited IT security and privacy as their top priority. The top ten responses are:

1. IT security and privacy / cybersecurity
2. Infrastructure management
3. Emerging technology and infrastructure changes – transformation, innovation, disruption
4. Resource / staffing / skills challenges
5. Regulatory compliance
6. Budgets and controlling costs
7. Cloud computing / virtualisation
8. Third-party / vendor management
9. Project management and change management
10. Data management and governance

The above listed areas portray an interrelated dynamic – emerging technologies and digital transformation place greater pressure on existing IT infrastructure and cause companies to explore alternative delivery models (e.g. through third-party arrangements), while giving rise to new cybersecurity and privacy risks – all of which require an evolution in the skillset of IT auditors.

The upcoming enactment of the EU’s General Data Protection Regulation (GDPR), which establishes new compliance requirements for information security and data privacy, further highlights the importance of effective data management and protection of organisational data.

“With regulators beginning to look more closely at the security and management of organisational data, we encourage IT audit teams to be aware of all data that an organisation processes, where it resides and how it’s being protected,” added Struthers-Kennedy. “While the increase in data capture and processing activities offers opportunities for enhanced business insight and competitive advantage, it also adds significant risk and therefore data protection needs to be prioritised.”

IT Audit’s Growing Importance

It’s clear that IT audit teams are of growing importance in organisations. This survey is the first one since the survey began that finds at least half of all organisations polled have a dedicated IT audit director (or equivalent position). This is a significant increase from just five years ago when only one in three organisations had a dedicated IT audit director.

Still, there is room to grow in how the IT audit function is viewed by business partners and board members within an organisation. Overall, less than half of respondents indicate that their CAE or IT audit director meets regularly with their company’s CIO to help develop the IT audit plan. Regular meetings with business leaders can help not only with timely risk identification but also to convey the value audit teams deliver.

About the Survey Report and Resources Available

The 2018 IT Audit Benchmarking Survey consisted of a series of questions in six categories: Emerging Technology and Business Challenges; IT Implementation/Project Involvement; IT Audit in Relation to the Overall Audit Department; Risk Assessment; Audit Plan; Cybersecurity and Skills, Capabilities and Hiring. The full survey report, along with an infographic and a short video, is available for complimentary download from ISACA here and from Protiviti here.

Protiviti and ISACA will host a complimentary one-hour webinar titled, “Today’s Top Technology and the Relationship to the Audit Plan” on May 22 at 9:00 a.m. PDT. Protiviti’s Struthers-Kennedy will be joined by ISACA’s Robin Lyons, technical research manager, for a discussion of the key trends emerging from the survey results. Please register here.

About ISACA

ISACA® (isaca.org) helps professionals around the globe realise the positive potential of technology in an evolving digital world. By offering industry-leading knowledge, standards, credentialing and education, ISACA enables professionals to apply technology in ways that instill confidence, address threats, drive innovation and create positive momentum for their organisations. Established in 1969, ISACA is a global association with more than 140,000 members and certification holders in 187 countries. ISACA is the creator of the COBIT framework, which helps organisations effectively govern and manage their information and technology. Through its Cybersecurity Nexus (CSX), ISACA helps organisations develop skilled cyber workforces and enables individuals to grow and advance their cyber careers.