Abstract:
Intelligent automation technology has shifted how knowledge workers in the service
industry work, as many manual tasks can now be automated. In particular, the
influence of intelligent automation technology, defined as robotic process analysis,
artificial intelligence, and machine learning, was perceived to have changed how
internal audit practices are performed. This perceived change would have resulted
in redesigned business processes which would have shifted how customers are
serviced, how services are provided, the way in which the internal audit function
operates, as well as the organisational structure, use of technology and business
information to create a competitive advantage. Therefore, from a South African
context, the research aimed to understand how intelligent automation technology
influenced the redesign of internal audit practices in South Africa, taking into
consideration critical success factors and barriers experienced, with the purpose of
being able to leverage change implementation and redesign practices for knowledge
workers in the service industry.
A qualitative, exploratory research methodology was used to gain insight into
perceived changes in internal audit practices due to the influence of intelligent
automation technology and the success factors and barriers experienced during the
change. The study consisted of 16 semi-structured, in-depth interviews with Senior
Managers and Chief Audit Executives from in-house internal audit functions as well
as Director and Partner level internal audit professionals from professional service
firms. The key finding of the research study indicated that due to the influence of
intelligent automation technology, internal audit practices in South Africa have been
slow to redesign business processes and, in some instances, have not fundamentally
redesigned internal audit practices. The study provided insight into the business
process redesign framework used to underpin this study, which revealed that
although effective in providing consideration when implementing a change
programme, the South African environment is unique and without adequate due
diligence processes to evaluate the organisational, social and technology landscape
of the business environment in which change is to be implemented, BPR will not be
successful and as such internal audit practices have seen limited changes.
