Session 2: Keeping pace with the Fourth Industrial Revolution and the changes in societyJeanne Boillet, EY Global Assurance Innovation Leader

IAS Conference 2018 "Internal Audit: Embracing the challenges of the future“ – 6 November 2018

Page 2 Internal Audit: Embracing the challenges of the future

The Fourth Industrial Revolution and (internal) audit transformation

Data explosion fueling

the digital disruption

Emerging Technologies’

convergence accelerating the

pace of change

Increasing complexity

of managing trust

MonitorRisks &

ControlsNew value

is feeding new trends and fueling (internal) audit transformation

The 4th Industrial Revolution

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Why now?

Source:

OECD analysis (March 2018) of data collected by the Illinois

Blockchain Initiative

Source:

Economist Intelligent Unit (August 2018) Intelligent

Economies

http://bit.ly/blockchain-govt-tracker https://perspectives.eiu.com/sites/default/files/EIU_Microsoft%20-

%20Intelligent%20Economies_AI%27s%20transformation%20of%20industries%20and%20society.pdf

Top AI use cases for Government,

Public Sector

Blockchain in the public sector:

more than 200 initiatives across 46

countries

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What organizations are required to review is changing

New and broader set of data: e.g.

social media

New digital asset class: e.g.

Cryptocurrencies & digital tokens

Social media

leak

Social media

security

Fake news

Cryptoassets

Cryptocurrency Platform token

Utility token Transactional token

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New risks arising from the adoption of emerging technologies

85%of AI projects through 2020 will deliver

erroneous outcomes due to bias in the data, in the algorithms or

among development teams

Do on-chain digital

tokens correctly

represent the off-chain

analog world?

Do Smart contracts’

algorithms behave

as expected?

Source: Gartner’s 2018 CIO Agenda Survey

Opening the AI black box Trusting the Blockchain

Page 6 Internal Audit: Embracing the challenges of the future

Digital tools enable new audit techniques

Automation

Advanced data analytics

Artificial Intelligence

Page 7 Internal Audit: Embracing the challenges of the future

Thank you