Ab Majlis Podcast: Hasnan Ali talks about transforming internal audit and embracing AI at Mashreq

Internal Auditing is facing one of the most important changes in its history and in the banking sector, that change is happening at a high speed. Speaking of AB Majlis Podcast, Hassan Ali, Chief of Internal Audit Teams at Mashreq, explained how the work is evolving from a traditional audit to an active, technology-led partner.

Hassan began by writing the revolution. “Evolution is kind of like everything in life, right, and auditing is no different,” Hassan said. Over the years, he explained, internal audits have moved away from the assessment of audit styles and towards risk-based audits, “risk-based flexibility”

This evolution has not happened equally in industries, he noted. “In all industrial sectors … Progress … is uneven,” Hassan noted. But the former banks, are driven by the demands of the regulators. “The banking industry is likely to lead in terms of this change because … regulators … are pressing forward and pressure and … directing the organization to drive better controls.”

Transforming Auditing at Mashreq

When Hassan joined MashreQ more than two years ago, he found a job that has already survived. “With MashreQ’s internal audit function already held in the highest esteem for its impact and performance, my job became more difficult, as I was starting to appear on the high bench.”

Therefore, his goal was not to prepare the internal audit, but to propose and deliver MashreQ’s digital transformation. “As soon as the risk profile of the bank type, internal audit should actually agree on its priorities with the priorities of the bank … because the focus of internal audit should be on the risks to deal with.”

This alignment, he added, was found through cooperation. “Our approach was to create an environment of transparency and trust … and create a common understanding that internal research is here to work with you to protect the organization and help the organization grow further.”

AI will also inform internal audits

The discussion turned to artificial intelligence and whether AI could eventually replace internal audits. Ali’s view is not valid: The worker must accept the AI ​​or the risk of the accident.

“The methods and processes currently used by in-house accountants will soon be gone. Mainly because of AI.”

Instead of resisting, he believes internal auditors should lead the way. “It should be a priority for any leader … to push forward in terms of adopting AI because the technology is already there.”

Mashreq already equips every internal auditor with safe, responsible AI tools. “They all use it every day, and … We’ve seen a huge improvement in terms of the performance of our work and the impact of our work.”

The bank’s next step is very ambitious: Building an in-house research engine. “By entering data from all connected systems and performing some risk analysis, the engine will improve the audit process to work in real time or as close to real time as possible,” emphasized Hassan.

This is important, Hassan argued, because traditional periodic audits are no longer fit for purpose. “Reviewing risks every two or three years does not provide the same value, because the pace of change today is so fast.”

Reliable AI requires strong management

With powerful technology comes the need for oversight. Hassan stressed that internal audits play an important role in ensuring AI models are ethical and fair.

“We’re actually looking at the complete life cycle of AI … Transparency of AI models, interpretation … How Bias is controlled … because the quality of the data … is very important.”

Mashreq has also launched the AI ​​Academy to Upskill all employees. “Every employee in the bank was actually trained and stepped up and able to use and use these AI models and tools responsibly.”

What will define the best audit jobs

Looking ahead, Hassan believes that the most successful audit teams will be those that combine insight and rigor.

“Eminent audit functions will be those that combine insight, intelligence, and strategic influence … they will move from reporting on what went wrong to advising on what went wrong.”

Technology will be huge in this. “The future of auditing lies in advance … You use data, technology and judgment to anticipate risks and opportunities … and shape decisions at the leadership table.”

But the culture of things is very big. “Good audit functions will be closely linked to the culture of the organization … Helping the organization live its values ​​in every action.”

Ultimately, what is audit without “its ability to drive confidence, enable progress, and contribute to long-term value creation.”

Hassan concluded by tying his vision to his leadership style. “Strategic Research Leadership … means driving an ongoing culture of trust that transforms assurance into a paradigm