University Auditing in the Digital Era: Challenges and Lessons for Higher Education Professionals and CAEs (Security, Audit and Leadership Series)

Cover Half Title Series Page Title Page Copyright Page Table of Contents List of Abbreviations Foreword by Ali Nail Kubali, PhD Foreword by Prof. Dr. Lourens Erasmus Authors Introduction Chapter 1: Conceptual framework for the digitally transforming university: Dynamic model approach 1.1 An overview of the conceptual framework for the digitally transforming university 1.1.1 Knowledge-based economy, academic entrepreneurship, and new managerialism 1.1.2 Beyond R&D in the universities: Knowledge-based capital for global value chain 1.1.3 Digital strategy and e-business model for Education 4.0 1.2 Rethinking the social context for digital transformation in the higher education sector 1.3 Transformation of a university: the case of mega-, macro-, meso-, and micro-level analytics 1.4 Importance of digital participation and information literacy for internal auditors 1.5 Contextual influence and response for digital risks: are internal auditors ready? 17 Notes References Chapter 2: Visioning the digital era from the audit perspective 2.1 Locating “the digital” in a competitive environment 2.2 Alternative views of digital transformation in the universities 2.3 Technology in the digitally transforming university 2.4 On the nature of the digital audit: a basis for critical discussion on audit culture 2.5 Exploring the digitally transforming university with a holistic approach 2.5.1 Entity-level business model in the HE sectors 2.5.2 Strategic management process in the HE sectors 2.5.3 Core businesses and their processes in the HE sectors 2.5.4 Research and other sponsored programs in the HE sectors 2.5.5 Resource management process in the HE sectors Notes References Chapter 3: Lessons for a CAE 3.1 Balancing digital expectations and possibilities for transformative change with IIA standards 3.2 Rethinking audit culture: will it be a digital pain or digital power? 3.3 Critical perspectives on the nature of digital competency: institutional agendas for the audit committee 3.4 Gaining a “seat at the table” with digital talents 3.5 Legal vs. ethical issues in the digital environment: the CAE’s dilemma Notes References Chapter 4: Establishment of the internal audit function balancing between physical and digital 4.1 Internal audit vs. digital audit 4.2 The internal audit charter: reality vs. fiction 4.3 Realities of embracing risk-based auditing in digital space 4.4 Challenges of meeting the IIA standards when writing reports on digital risks 4.5 Outsourcing, co-sourcing, and in-sourcing keys and challenges in digital Note References Chapter 5: Internal audit resourcing and staffing based on digitally enriched learning spaces 5.1 Determining the digital skills for internal audit staffing and resourcing 5.2 Digital requirements for an effective internal audit 5.3 Developing digital skills and knowledge on digitally enriched learning spaces within internal audit 5.4 Challenges internal auditors face when executing digital audit objectivity and professional skepticism 5.5 Keys to executing independence, objectivity, and professional skepticism in digitally enriched learning spaces Notes References Chapter 6: Executing the responsibilities of internal audit in digitally transforming universities 6.1 Key performance standards critical for digital audit 6.1.1 Requirements for the effectiveness of digital audit 6.1.2 Targets for the effectiveness of digital audit 6.2 Balancing future risk vision of management and internal audit 6.3 Performing consulting type engagements: Benefits and challenges 6.4 Internal audit’s role as trusted data analyzers 6.5 Functional and administrative reporting lines with digital audit reporting requirements References Chapter 7: The impact of the pandemic crisis on higher education institutions with post-COVID auditing perspective 7.1 The impact of digital transformation on the higher education system 7.2 Learning environment in the digital era 7.3 Digital-based management in the higher education system 7.4 Virtualization of the audit universe in higher education 7.5 The new security dimension of being virtual in higher education Note References Concluding remarks and appendixes Appendix 1 Self-Assessment for Maturity of Digital Internal Audit Appendix 2 Self-Assessment for Maturity of Strategy for Internal Audit Appendix 3 Self-Assessment for Maturity of People for Internal Audit Appendix 4 Self-Assessment for Maturity of Process for Internal Audit Appendix 5 Self-Assessment for Maturity of Data for Internal Audit Appendix 6 Self-Assessment for Maturity of Technology for Internal Audit Index This book explores how digital transformation is reshaping the manner in which higher education sectors emerge, work, and evolve and how auditors should respond to this challenging and risky digital audit universe in transforming the higher education system. It serves to help professionals to understand the reality of performing the Chief Audit Executive (CAE) role in today’s evolving business economy, specifically in the higher education sector. It compares and contrasts the stated IIA standards with the challenges and realities auditors may face and provides alternative scenarios to gaining a "seat at the table." This book also provides insight into critical lessons learned when executing the CAE role relevant for digitally transforming universities. The main purpose of this study is to rethink the audit culture in the digital era and reveal the key characteristics that are open for improvement so that digitally transforming universities can be audited according to the higher education standards with a digitally supported value-added audit approach. Based on this approach, the audit culture is reassessed considering the digital university conceptual framework and business model. There are two main points to consider for the digital university work environment: traceability and auditability. In this respect, policy recommendations are made for best practices to achieve value-added digital audits in transforming universities. The book has been written from both the reality and academic perspectives of two experienced authors. Sezer is a past CAE, CEO, and long-term senior internal auditor who has worked in the internal audit role for various listed companies, financial institutions, and government entities. Erman has extensive information technology and university accreditation knowledge in the global higher education sector. This brings a blend of value-added approaches to the readers and speaks to issues about understanding and dealing with audit culture and business evolution in digitally transforming organizations along with the requirements for upholding IIA standards. Geared toward the experienced or new CAE, University Auditing in the Digital Era: Challenges and Lessons for Higher Education Professionals and CAEs can be a tool for all auditors to understand some of the challenges, issues, and potential alternative solutions when executing the role of university auditing. In addition, it can be a valuable reference for university administrators and CIOs, as well as academics and all stakeholders related to the higher education sector. The book is a tool for all auditors to understand some of the challenges, issues and potential alternative solutions when executing the role of university auditing. In addition, the book can be a valuable reference for university administrators, CIOs as well as academics and all stakeholders related to higher education sector.