Internal auditors readiness in audit 4.0 project management

Abstract

This study was conducted to examine the level of readiness of the Internal Auditors in the development of Audit 4.0 in the Project Management audit. Currently, the digitalization has grown rapidly in the activities in each Project Management process. The use of automation system has been recognized for its effectiveness in ensuring that projects are completed according to the established time, within the agreed budget and according to the requirements of the contract. In addition, to ensure that projects are always managed well, project audits should be held periodically. Therefore, project auditing should consider the automation system in the project management process as part of the internal controls. In this study, the author have adapted the project management processes and internal controls practiced by Tenaga Nasional Berhad in determining the level of understanding of the Internal Auditors on Audit 4.0 Project Management. In addition, findings from the previous studies were extended in determining the level of readiness of the Internal Auditors in adapting Audit 4.0 Project Management. This study was conducted by distributing questionnaires to the Internal Auditors of Tenaga Nasional Berhad and conducted interviews with the audit management. This study concludes that the Internal Auditors understand on the application of Audit 4.0 in the project management process, especially within the scope of the Payment Process. The study has found that the Internal Auditors were prepared to adapt the Audit 4.0 Project Management and agreed that the management was always prepared to assist the auditors in dealing with these changes.