Digital Disruption: Positive and

Negative Impact on Internal

Auditing

Helen Anijalg, ESTONIA

Certified Internal Auditor since 2005

July 2019, IIA Global Conference

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a modest

country that

extends beyond

its borders

+ population: 1.3 million

+ area: 45,339 km2

+ currency: Euro

+ member of: EU, NATO, WTO, OECD,

+ ICT sector: 7% of GDP

Finland

Russia

EST

Europe

Latvia

Lithuania

Sweden

Poland

e-tax

board

m-parking

population

registry

x-road

digital

signature

id-card

e-school

id bus

ticket

e-land

registryEHIS i-voting

2000 2001 2002 2003 2004 2005

e-Estonia timeline

e-health

systeme-prescriptions smart grid

ev quick

charging

network

x-road

europe

keyless

signature

infrastructure

e-police

system

mobile-id

2007 2008 2010 2011 2012 2013

e-Estonia timeline

e-residency

data

embassye-reciept

data

embassy stage 2

opening a bank

account online

reporting

3.0

2014 2015 2016 2017 2018

e-Estonia timeline

e-Estonia The smartest digital solutions.

My story nr 1

© Ton

uT

un

nel

Positive effect:

Digital signatures

+ Internal audit files are 100% digital.

+ It is rare to meet paper documents

+ Estonian digital signature cannot be falsified

+ Easier to control procurement processes, contracts,

invoices, etc

+ Easier to discover simple fraud

Digital signatures save time and money

A stack of paper saved each month by 1 million Estonians

300meters

efficient

In Estonia:

+ digital signature saves 2% of GDP per year

+ one of the best tax collectors in the world

+ i-voting 2.5 times cheaper

Audit documentation - digitally signed

Audit reports - digitally signed

Could this be a stack of paper saved by you ?

Digital Disruption: Positive and

Negative Impact on Internal AuditingE-solutions bring transparency.

Audit process has changed a lot.

© T

aan

ielM

alle

us

+ More than two digital interactions a day per Estonian

+ impactful e-governance built on trust and math

e-Estonia The smartest digital solutions.

My story nr 2 – Positive Impact on Internal

Auditing

© Ton

uT

un

nel

electronic IDThe strongest identity.

© e

ston

ian

des

ign

hou

se.e

e

+e-ID, mobile-ID, smart-ID

+travel

+digital signing

+i-voting

+business, banking

+state and healthcare

+public transport

+loyalty card

How much time does it take you to go

voting?

In Estonia it takes 2-5 minutes

© R

enee

Alt

rov

+ 2005 – first in the world

+ 30% vote online

+ votes cast from 116 countries

+ saving over 10,000 working days

ID cardUsed also by internal auditors for digital

signing, voting, authentication, logging in

to different e-services.

Even trendier: mobile-ID

© e

ston

ian

des

ign

hou

se.e

e

exchange

+ 99% of state services are online

+ over 2000 services

+ over 900 connected organizations, databases

+ over 500 million transactions per year

The busiest highway of e-Estonia – X-

Road.

Which are 3

transactions that can

not be done online in

Estonia?

Answer: only getting married

or divorced and selling real

estate cannot be done online.

Yet.

© T

õn

uR

un

nel

Audit process and e-services

ID-card & Mobile-ID

confidentialityDifferent e-services (X-ROAD)

availability

The safest combination.

e-Estonia The smartest digital solutions.

Positive impact:

Databases © Ton

uT

un

nel

ease of auditingSimplest and fastest business environment.

© E

AS

+ most start-ups per capita

+ a few hours to start a company

+ e-taxation, 2018: 97% of population use digital tax delaration

ease of auditingSimplest and fastest audit environment.

© E

AS

In internal auditor’s working life:

+ Quick access to electronic Business Register

+ Only electronic invoices

+ No cash transactions accepted

+ Digital correspondence (digitally signed letters, e-mails,

encrypted channels)

+ Quick exchange of audit data within organisation

New fraud indicators in digital world

Negative Impact on Internal Auditing

Do you have in audit team all necessary IT skills?

Should you outsource IT specialists?

How to discover digital fraud?

Do you know well blockchain technologies?

Digitalization has accelerated the processes – what

is the negative impact of it?

The documents you audit are 100% digital as well

as your audit file. What do you miss?

© T

aan

ielM

alle

us

Internal auditors in Estonia can audit effectively by using

different e-services.

.

.

© Ton

uT

un

nel

E-future has arrived!

My contact:

Helen Anijalg

Roofit Solar Energy

www.roofit.solar

helen@roofit.solar

© J

oh

ann

es A

rro

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