Abstract

This paper delves into the integration of Intelligent Process Automation within the domain of business continuity auditing, with a focus on the Portuguese banking sector. In an era marked by rapid technological advancement, organizations are increasingly leveraging automation to reinforce operational efficiency and realize substantial cost savings. Concurrently, auditors play a pivotal role in ensuring seamless transitions amid technological transformations to safeguard business continuity. This research endeavors to bridge the realms of business continuity and intelligent automation, culminating in a comprehensive application that streamlines the audit process. The implemented solution encompasses the automation of critical audit activities, including communication, information requests, and final report submissions, liberating auditors from the chains of repetitive tasks. The incorporation of business intelligence augments this automation framework, enabling a meticulous analysis of key performance indicators within the audit department. This ensures a continuous evaluation of the efficacy of the Annual Audit Plan. Empirical validation of this initiative was achieved through surveys conducted with audit teams from four prominent Portuguese banks. The results unequivocally affirm the potential benefits of this implementation, extending invaluable support to management in the decision-making process, while concurrently alleviating auditors of routine tasks inherent to the audit process. This study not only underscores the transformative potential of intelligent process automation in the audit domain but also offers a replicable framework for organizations seeking to fortify their business continuity efforts through technological integration. The findings hold implications for businesses navigating the dynamic intersection of technology and audit practices, providing a blueprint for harnessing automation for enhanced operational resilience.

Introduction

Technological advancements have greatly increased information accessibility and are continuously reshaping information systems to meet future demands This dynamic environment compels organizations to adopt open innovation strategies to streamline operations, enhance efficiencies, and fortify fraud prevention measures. The COVID-19 pandemic has accelerated the shift towards remote work, emphasizing the importance of process automation. In auditing, technology has become essential in ensuring compliance, assessing risks, and improving operational efficiencies, promoting transparency and accountability. The shift from manual to automated and continuous auditing is driven by emerging technologies like Artificial Intelligence (AI) and blockchain, significantly affecting the banking sector. Despite these advances, the transition to fully digital auditing practices remains gradual, with many institutions still reliant on traditional methods.

The auditing process has evolved from traditional manual audits of paper documentation to computer-based auditing, progressing towards a paperless, electronic, real-time continuous auditing environment ( Rezaee et al., 2002 ). The banking sector has faced numerous challenges in recent years, responding to incentives and imperatives related to technological advances, market volatility, and increasing regulatory and public scrutiny. Since the 2007 financial crisis, known as the subprime crisis, the audit function in banking institutions has become significantly more crucial. Its primary mission is to mitigate the risk of potential or actual losses, thereby enhancing the institution’s risk profile ( Zinca, 2016 ). Internal Audit (IA) departments are under increasing pressure to leverage technology for automating the identification of exceptions and/or anomalies and for control testing ( The Institute of Internal Auditors, 2019 ).

Conclusions

This study aimed to integrate automation within the audit process, thereby streamlining manual and repetitive tasks to enhance the efficacy of business continuity management. This goal was pursued through the identification of optimal automation solutions and the mitigation of associated risks.

A multi-stage methodological approach was utilized, beginning with an extensive literature review to identify the risks, benefits, and challenges linked with the automation of audit processes. This was followed by the application of the DSRM to precisely define the core problem and develop an appropriate solution. Subsequent phases involved the detailed design and development of the proposed solution, culminating in a survey conducted among bank auditors to evaluate how well the solution met their needs.

The findings from this study highlight the pivotal role of IPA in the audit process. Significant advantages were observed, including the implementation of an alert system that notifies auditors of upcoming audits and the use of KPIs to provide a detailed overview of the progress within the audit plan. These tools help identify areas that require refinement in audit management.