The implementation of internal audit management software offers a strategic advantage for complying with the Standards established in Domain IV of the International Professional Practices Framework (IPPF), especially regarding the strategic planning of the internal audit function. This type of software allows for the efficient and structured consolidation of information on the organization’s governance, risk management, and control processes, facilitating decision-making.

Principle 9: Plan Strategically

The strategic planning of internal audit can be aligned with the IPPF through audit management software, as long as the chosen software is used appropriately to support the practices established in the standards. Strategic planning is a fundamental aspect to ensure compliance with the function’s mandate and align its activities with the organization’s objectives.

Next, we will detail how audit management software can ensure that strategic planning meets the requirements of the IPPF; we refer in particular to Standards 9.1, 9.2, 9.3, 9.4 and 9.5:

· Standard 9.1: Understanding governance, risk management, and control processes

Specialized software helps maintain a clear vision of the maturity of governance, risk management, and control processes. With access to relevant information, the Chief Audit Executive (CAE) can generate a more accurate risk and control matrix, allowing for the rapid identification of areas that require attention or improvement. This ability to strategically manage internal audits in a way that is aligned with the principles of governance and control improves the efficiency and effectiveness of the audit function.

· Standard 9.2: Internal Audit Strategy

Requires the CAE to develop and execute an internal audit strategy that is aligned with the strategic objectives of the organization. An audit management software can facilitate this process by allowing:

ü Understand the organizational strategy: The software allows for the integration of the organization’s strategic objectives, ensuring that the internal audit is aligned with these objectives that the business will develop during the year.

ü Identification and assessment of key risks: The software allows for the documentation or identification and qualification of the strategic, operational, and financial risks that the organization faces.

ü Continuous review: The software facilitates the periodic review of the internal audit strategy, allowing the CAE to make adjustments when necessary.

· Standard 9.3: Methodologies

Establishes that the CAE must implement systematic and disciplined methodologies to guide the internal audit. Audit management software can ensure that these methodologies are applied correctly through:

• Process optimization: The software can incorporate standardized templates and workflows, which ensure that audit procedures are performed following specific and systematic methodologies. This includes audit planning, risk assessment, and communication of results.

· Better resource allocation: The software facilitates the efficient allocation of resources within the internal audit function. By having a detailed view of the organization’s priorities, the CAE can distribute resources in a way that maximizes results and minimizes duplicated or misdirected efforts. In addition, audits can be planned based on their strategic importance, ensuring that resources are focused on the areas of greatest impact.

· Standard 9.4: Internal Audit Plan

The CAE must develop an internal audit plan that supports the objectives of the organization, based on a documented risk assessment. Audit management software allows for compliance with the Standard through the following functionalities:

· Risk Assessment and Prioritization Matrix: The software allows for a detailed and documented assessment of organizational risks, which constitutes an essential input for the internal audit plan.

Additionally, it is advisable to have a prioritization matrix, which allows for detailed monitoring of the evolution of risks in the organization and how the Criticality Levels of the different Auditable Units are prioritized over time.

• Execution of audits: The software allows for the creation of risk-based audits, aligning resources and efforts with the areas of greatest priority for the organization.

· Documentation and monitoring: The software allows for the centralized storage of all relevant documentation of the audit plan, ensuring that it is kept up to date and is easily accessible for periodic reviews. In addition, it offers the possibility of monitoring the progress of the execution of the plan in real time, which facilitates the management of compliance with the plan.

Standard 9.5: Coordination and Reliance

Highlights the importance of coordinating internal audit efforts with other assurance service providers, both internal and external. Audit management software supports this coordination in the following ways:

• Integration of external and internal services: Effective software allows for the integration of the work of other assurance service providers, which facilitates mutual trust and coordination in audit processes. The software can allow for the uploading and evaluation of reports from external providers and the inclusion of their work in the overall analysis.

Conclusion

An audit management software is a powerful tool that, if used properly, can ensure compliance with the International Professional Practices Framework in strategic planning. By offering functionalities such as the integration of strategic objectives, the automation of methodologies, the assessment and documentation of risks, and the improvement in coordination with other assurance providers, the software directly supports the requirements established in Standards 9.1, 9.2, 9.3, 9.4 and 9.5. In addition, the software allows for greater efficiency, transparency, and agility in the execution of the internal audit strategy, contributing to the function fulfilling its mandate effectively and aligned with organizational objectives.