Abstract
With organisations globally digitalising their business processes, including implementation of
Enterprise Resource Planning (ERP) systems, the internal and external auditors' role has evolved to
cover not only traditional audit functions but also providing assurance and advisory services in
software implementation projects. The study investigates the required skill sets that auditors must
possess to audit software implementation projects effectively.
This research explored how auditors adapt to these changes, particularly regarding technical and soft
skills. The literature review highlights the shift from manual auditing (Audit 1.0) to technology-driven
approaches (Audit 4.0), emphasising the need for agility, critical thinking, and robust IT
competencies. The core skills identified include knowledge of IT governance, data analytics,
cybersecurity, project management, and the ability to communicate technical insights to nontechnical
stakeholders. Soft skills such as collaboration, communication, and emotional intelligence
remain critical in fostering effective teamwork and stakeholder engagement.
The research adopts a mixed-methods approach, employing both qualitative and quantitative
methodologies. Data was collected through questionnaires distributed to a global audience of audit
professionals via LinkedIn and the researcher's professional networks. Analysis of 72 responses
revealed that while most audit professionals and internal audit functions (IAFs) are actively involved
in software implementations, a significant portion of the audit work is outsourced to external
consultants due to a lack of skills with the in-house team. Respondents indicated varying proficiency
levels in system development methodologies, project management, and IT general controls.
Key findings indicate that while many auditors regularly attend IT-related training, there is a need for
enhanced certifications and qualifications in IT audit. The research also identifies success factors for
software implementation projects, including early internal audit involvement, collaboration across
organisational units, system testing, system integration, robust documentation, system support (both
technical and functional support) and comprehensive user training. Furthermore, the study indicates
that the practices adopted by the IAFs are aligned with the requirements of the Global Internal Audit
Standards published by the Institute of Internal Auditors.
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The study concludes that significant challenges remain while the audit profession is making strides
toward adapting to digital transformation. These include bridging the skill gaps, enhancing
collaboration with IT teams, and maintaining relevance in an era dominated by advanced technologies
such as artificial intelligence and data analytics. Recommendations for future research include a study
on the internal auditors’ digital skillset focusing on specific industries and geographical areas.
The study contributes to the growing body of literature on auditing in the context of digital
transformation, providing insights into the evolving skill requirements of auditors. It serves as a guide
for audit functions aiming to remain relevant and value-adding amidst rapid technological
advancements.