Internal Auditor Transformation Strategy in the Industrial Revolution 4.0 Era: Literature Review

Abstract

This paper is intended to identify a transformation strategy that can be applied by the Government Internal Supervisory Apparatus (APIP) to face audit challenges in the industrial revolution 4.0 era. In line with the influence of industry 4.0 on audit activities, APIP must quickly adapt to technological developments. Utilization of technology 4.0 places APIP as a business analyst to find errors in business processes and determine solutions to these errors. So, in order to face the challenges of industry 4.0, an APIP transformation strategy is needed. The author reveals that the APIP transformation strategy in facing industry 4.0 such as (1) APIP must be able to use data collecting equipment, such as sensors and software, to collect data, (2) APIP must have characters that can be their hallmark in completing their audit tasks. These characters include cognitive abilities, ability to solve complex problems, communication skills, understanding of their position in the internal control system, and agility (3) APIP must be professional, millennial, innovative, and not afraid of failure while still prioritizing integrity, objectivity, and professionalism.