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FRAMEWORK  ·  Internal Audit · Agile Operating Model

improve™ 2.0 — The Agile Operating Model of High-Impact Internal Audit

The operating model that turns internal audit from a fixed annual plan into a continuous, AI-augmented assurance flywheel — sensing risk in real time, delivering in sprints, and compounding insight cycle after cycle to maximise the impact of every audit.

The Cycle

Six nodes, one continuous assurance cycle

improve™ 2.0 reimagines internal audit as a continuous, AI-augmented assurance cycle: six working nodes turning around a central AI engine, so value flows from sensing risk, through sprint delivery, to always-on insight — then back into the backlog, and each cycle compounds the last. Tap any node to see what it does, where AI assists, and what it produces.

01  ·  MERGED

Audit Backlog

The living plan that retires the annual audit plan.

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01

A living, prioritised backlog of audits and value propositions — owned by IA — replacing the fixed annual audit plan.

AI — clusters risk signals and surfaces candidate value items.

Activities
  • Capture value propositions from stakeholders, ERM and prior cycles
  • Score and rank each item by value and risk impact
  • Refine and re-prioritise continuously
Deliverables
  • Living value backlog
  • Prioritisation rationale
02  ·  NEW

Risk Sensing

Always-on risk and horizon scanning.

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02

Real-time, dynamic risk and horizon scanning, connected to ERM and the second line, continuously refreshing the audit backlog.

AI — scans data, controls and external signals for emerging risk.

Activities
  • Monitor data, controls and external signals
  • Connect to ERM and second-line monitoring
  • Flag emerging domains — cyber, AI, resilience, ESG
Deliverables
  • Dynamic risk picture
  • Emerging-risk alerts
03

Sprint Iterations

Time-boxed audits, pulled by value.

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03

Time-boxed audit sprints with defined outcomes, pulling the next highest-value engagements from the backlog.

AI — agentic testing and evidence review accelerate fieldwork.

Activities
  • Pull the highest-value audits into the sprint
  • Plan, test and gather audit evidence
  • Daily stand-ups and blocker removal
Deliverables
  • Sprint assurance results
  • Workpapers & evidence
04

Improvements Register

Findings captured as the work happens.

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04

A living record of audit findings, issues and control enhancements captured as fieldwork happens.

AI — drafts findings and links them to the right controls.

Activities
  • Log findings and root causes in real time
  • Link issues to controls and risks
  • Track remediation owners and dates
Deliverables
  • Improvements register
  • Remediation tracker
05  ·  EVOLVED

Continuous Insight

Always-on dashboards, board-ready insight.

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05

Always-on dashboards and audience-ready insight, alongside periodic board reporting and an annual opinion.

AI — generates dashboards and narrative on demand.

Activities
  • Maintain live assurance dashboards
  • Tailor insight to each audience
  • Produce board reporting and the annual opinion
Deliverables
  • Assurance dashboards
  • Board report & annual opinion
06  ·  MERGED

Retrospective

Close the cycle; feed the lessons back.

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06

One review-and-learn ceremony that closes each cycle and feeds lessons straight back into the Value Backlog.

AI — mines patterns across cycles to sharpen the backlog.

Activities
  • Review value delivered and what carried over
  • Run a blameless retrospective
  • Feed improvements into the backlog and the process
Deliverables
  • Retro actions
  • Process improvements
Governance

Four guardrails that keep it assured

Speed never comes at the cost of independence or quality. Four guardrails hold the operating model to the standards the board relies on.

01

Independence & Objectivity

IA owns the backlog and the opinion. Collaboration with the business informs the work — it never lets management own the plan.

02

Risk-Universe Coverage

Value-led prioritisation sits on top of guaranteed coverage of mandatory, regulatory and top enterprise risks. Nothing required gets crowded out.

03

Quality & Conformance

Iterative work still meets workpaper, evidence and QAIP standards — including a human validating every AI-assisted conclusion — ready for external scrutiny.

04

Board Assurance

Continuous dashboards are complemented by periodic reporting, escalation of significant issues, and an annual internal audit opinion to the committee.

Operating Model

Roles & cadence

Clear ownership and a steady rhythm turn the model from a diagram into a way of working.

Audit Product Owner
Owns and prioritises the value backlog — IA-side, protecting independence.
Audit Sprint Lead
Facilitates sprints, runs the ceremonies and removes blockers.
Audit Pod / Squad
Cross-skilled auditors plus data & AI specialists delivering the work.
Chief Audit Executive
Owns the opinion, conformance and the Audit Committee relationship.
Audit Committee
Sets coverage expectations and receives the annual internal audit opinion.
Business Risk Champions
Feed risk signals from the first and second line — never own the plan.
DailyStand-up & signal triage
Per sprint · 2–4 wksBacklog refinement · review · retrospective
QuarterlyValue & coverage review with stakeholders
AnnuallyRisk-universe assessment & board opinion
Horizon

Where high-impact audit is heading

The operating model is built to absorb what comes next — more autonomy, broader coverage, and assurance that is continuous by default.

🤖

Audit WITH AI

Agentic continuous testing, evidence review and drafting accelerate the engine and every sprint.

🛡️

Assurance OVER AI

Model, agent and AI-governance risk become a permanent — and fast-growing — domain in the backlog.

🔗

Connected assurance

Wired into ERM and the second line so risk is sensed dynamically and work is never duplicated.

🌱

Talent & capability

Growth Mindset with teeth: T-shaped auditors, AI literacy, and a product-owner for the backlog.

⚖️

Standards-aligned

Mapped to the IIA's 2024 Global Internal Audit Standards — conformant, not experimental.