Internal audit software for banks is a system that helps the Internal Audit Work Unit or SKAI manage the entire banking audit cycle in one platform, starting from risk assessment, preparation of audit plans, implementation of examinations, documentation of evidence, reporting of findings, to monitoring follow-up.
In Indonesian, this solution is also known as internal audit software banking applications, bank internal audit applications, or bank audit management systems. Their use helps banks replace processes that still rely on spreadsheets, separate documents, emails, and shared folders with more structured digital workflows.
However, using the application does not automatically ensure a bank complies with all regulations. The software serves as a supporting tool to improve process consistency, complete documentation, transparency, and monitoring capabilities by both the Internal Audit Unit (SKAI) and management.
Why Do Banks Need Internal Audit Software?
Banks have complex operational environments. Audit activities can involve head office, branch offices, credit units, treasury, information technology, operations, compliance, customer service, and even third-party management.
This complexity makes manual audit processes increasingly difficult to maintain, especially as the number of auditable entities, findings, documents, and parties involved continues to grow.
Some common banking internal audit challenges include:
- Data audit stored in various spreadsheets and folders.
- Document changes are difficult to track consistently.
- The audit execution status is not visible in real-time.
- Follow-up on recommendations is late or undocumented.
- Preparing management reports requires manual consolidation.
- Branch office findings history is difficult to compare.
- Audit priorities are not yet fully risk-based.
- Audit evidence takes a long time to be recovered.
- Coordination between auditors and auditees is carried out through multiple channels.
- Management has difficulty obtaining a comprehensive view of risks and critical findings.
Banking internal audit software helps unify these processes into one system that can be used by auditors, reviewers, auditees, Head of SKAI, Audit Committee, and related stakeholders according to their authority.
The Regulatory Context of Bank Internal Audit in Indonesia
The selection of bank internal audit applications needs to consider the regulatory framework applicable in Indonesia.
POJK Number 1/POJK.03/2019
OJK Regulation No. 1/POJK.03/2019 regulates the implementation of the internal audit function in commercial banks. This regulation serves as a primary basis for banks to adequately manage their internal audit function.
A digital audit system can help banks document the implementation of these functions, including planning, audit programs, audit evidence, audit results, and follow-up on recommendations.
POJK Number 17 of 2023
POJK Number 17 of 2023 concerning the implementation of governance for commercial banks stipulates that banks are required to have an internal audit function carried out by an internal audit work unit independently and objectively.
These regulations also cover communication and reporting on the implementation of the internal audit function. Therefore, banks require consistent and easily traceable documentation and reporting processes.
POJK Number 11/POJK.03/2022
POJK Number 11/POJK.03/2022 regulates the implementation of information technology by commercial banks.
When banks use internal audit software, the procurement and implementation processes need to pay attention to IT governance, information security, user access, vendor management, service continuity, and data protection.
Provisions for BPR and BPR Syariah
For BPR and BPR Syariah, SEOJK Number 9/SEOJK.03/2025 regulates the implementation of internal audit functions, including general policies, organizational structure, audit implementation, and reporting of internal audit functions.
Therefore, the application requirements of a rural bank (BPR) or rural bank (BPRS) may differ from those of a commercial bank. The system must be adaptable to the business scale, operational complexity, organizational structure, and available audit resources.
Main Functions of Internal Audit Software for Banks
Audit software for banks should serve more than just a document repository. The chosen solution must be able to support the entire internal audit cycle in an integrated manner.
1. Managing the Audit Universe
Audit universe is a list of all entities, units, processes, systems, products, branch offices and activities that can be audit objects.
In the banking industry, the audit universe may include:
- head office and branch offices;
- credit granting and monitoring process;
- treasury and liquidity;
- information Technology;
- cyber security;
- procurement and vendors;
- compliance;
- operational transactions;
- financial reporting;
- digital services;
- human Resources;
- customer complaint management.
A centralized audit universe helps SKAI ensure that all critical areas are mapped and not missed in the audit cycle.
2. Supports Risk-Based Internal Audit
Approach Risk-Based Internal Audit or RBIA helps auditors prioritize audit objects based on risk level.
Bank internal audit applications can provide risk assessment parameters, weighting, risk scoring, risk profiles, and auditable entity rankings. These assessment results can be used as a basis for establishing annual audit priorities.
With this approach, audit resources can be focused on processes, branches, products, or systems with higher risk exposure.
3. Prepare an Annual Audit Plan
Banking internal audit software can be used to prepare annual audit plans more systematically.
Information that can be managed includes:
- purpose of assignment;
- audit scope;
- auditable entity;
- risk level;
- implementation schedule;
- team composition;
- budget requirements;
- auditor's estimated working days;
- approval status;
- progress against the annual plan.
The planning dashboard helps the Head of SKAI monitor whether all assignments are running according to plan and the available auditor capacity.
4. Provide Audit Program Template
Banks can have multiple audit assignments with varying characteristics. Therefore, using an audit program template can expedite audit preparation while maintaining methodological consistency.
Templates can be prepared for audits:
- credit;
- branch office operations;
- treasury;
- information Technology;
- compliance;
- procurement;
- human Resources;
- finance;
- digital services;
- third party.
Auditors can still adjust audit procedures based on the objectives, scope, and risk profile of each assignment.
5. Managing Digital Working Papers
Digital working papers function to store documentation of procedures, control testing, auditor analysis, supporting evidence, conclusions, and review results.
A good working paper system should enable the auditor to:
- upload supporting documents;
- linking evidence to audit procedures;
- record test results;
- add cross-references;
- provide review comments;
- manage revisions;
- record job status;
- maintain activity history.
Centralized documentation can simplify the quality assurance process and retrieval of audit evidence.
6. Record and Classify Findings
Bank internal audit applications need to provide structured management of findings.
Each finding may include:
- conditions found;
- criteria or reference;
- root cause;
- impact or risk;
- classification of levels of findings;
- recommendation auditor;
- response auditee;
- person in charge;
- target completion;
- evidence of follow-up;
- verification status.
This structure helps banks avoid storing findings in non-uniform formats.
7. Monitor Corrective Action
The value of an audit doesn't end with the report's issuance. Banks also need to ensure that recommendations have been acted upon and identified risks have been adequately addressed.
The corrective action feature can help:
- Appoint person in charge.
- Determine the solution target.
- Send reminders to auditees.
- Uploading follow-up evidence.
- Request clarification or revision.
- Conducting a review by an auditor.
- Provide settlement approval.
- Monitor findings that pass deadlines.
- Identify recurring findings.
- Prepare outstanding findings reports.
In this way, management can know which units require further attention.
8. Provide Approval Workflow and Audit Trail
In the banking audit process, banks need to know who created, checked, changed and approved a document.
Approval workflows help ensure that documents pass through the review stages according to the authority structure. audit trail record important activities within the system.
Information that needs to be traced includes:
- users who perform activities;
- activity time;
- altered document;
- status before and after change;
- approver;
- reviewer comments;
- document delivery history.
This feature supports transparency and accountability of the audit process.
9. Generating Reports and Dashboards
Head of SKAI, Board of Directors, Board of Commissioners, and Audit Committee require different levels of information.
Banking internal audit software should be able to display:
- realization of the annual audit plan;
- assignment status in progress;
- number of findings based on risk level;
- critical findings;
- findings that are past the deadline;
- progres corrective action;
- recurring findings;
- distribution of findings by unit;
- use of auditor resources;
- audit results trends over time.
Dashboards streamline the data consolidation process while helping management see areas that require immediate decisions.
10. Supports System Integration
Audit software doesn't always need to be standalone. Banks may require integration with other systems for more efficient data exchange.
Integration can be considered by:
- risk management system;
- compliance system;
- document management system;
- an identity provider or single sign-on;
- officer directory;
- reporting system;
- data warehouse;
- sistem ticketing;
- notification platform.
Integration needs should be determined through analysis of the bank's IT processes and architecture prior to implementation.
Examples of Using Audit Software in Banks
Branch Office Audit
SKAI can map all branch offices as auditable entities, provide risk assessments, select priority branches, use audit program templates, and compare findings between periods.
Credit Process Audit
Auditors can document testing of the credit application, analysis, approval, disbursement, monitoring, and settlement processes.
Information Technology Audit
The system can be used to plan and document audits of IT governance, access management, system changes, information security, backups, and service continuity.
Operational Audit
Auditors can examine transaction processes, reconciliations, authorizations, cash management, customer service, and compliance with internal procedures.
See also: Operational Audit: definition, types, objectives and examples
Compliance Audit
The application helps auditors link audit programs to relevant internal policies, regulations, or controls and centrally store test evidence.
See also: Compliance Audit: Definition, Benefits, types, and examples
Monitoring of Regulator and External Auditor Findings
In addition to internal audit findings, banks can use the system to record recommendations from external auditor or the supervisory party, then monitor the follow-up plan.
Benefits of Banking Internal Audit Software
Improving Audit Process Efficiency
Automated templates, workflows, notifications, and reporting reduce repetitive administrative work. Auditors can allocate more time to risk analysis and testing.
Strengthening Methodological Consistency
Audit programs, working paper formats, classification of findings, and review processes can be standardized across units and branch offices.
Accelerating Information Provision
Audit data doesn't need to be re-collected from multiple files when management requests an updated report. Audit status and follow-up actions can be monitored through the dashboard.
Facilitating Quality Assurance
Reviewers can see the working papers, evidence, comments, and change history in one system. This makes the review process more structured.
Mengurangi Risiko Kehilangan Dokumentasi
Centralized storage reduces dependence on personal devices, email, and folders that lack adequate access management.
Meningkatkan Disiplin Tindak Lanjut
Notifications, deadlines, persons in charge, and verification processes make finding follow-up easier to monitor.
Mendukung Pengambilan Keputusan
Reports on finding trends, high-risk units, and corrective action delays give management more relevant information for setting improvement priorities.
Features to Check Before Choosing a Bank Audit Application
Before choosing a vendor, banks should assess their business needs, security, technology architecture, and implementation governance.
Here are the criteria to check.
1. Cakupan Siklus Audit
Make sure the application supports the process from the audit universe and risk assessment through to reporting and follow-up monitoring.
2. Fleksibilitas Workflow
Banks need to be able to adjust the review stages, approval structure, finding classification, and terminology to the SKAI methodology.
3. Role-Based Access Control
Access rights must be restrictable by role, unit, assignment, and the user's authority level.
4. Keamanan Data
Evaluate the mechanisms for authentication, encryption, activity logging, backup, recovery, vulnerability management, and integration security.
5. Pilihan Deployment
Banks need to assess the fit of cloud, private cloud, on-premise, or hybrid models against their IT policies and architecture.
6. Audit Trail
Make sure important activities, document changes, reviews, and approvals are traceable.
7. Integrasi
Check API availability and integration capability with the bank's system ecosystem.
8. Skalabilitas
The system needs to keep up with growth in users, units, branches, documents, findings, and assignments.
9. Dukungan Implementasi
The vendor needs to provide needs analysis, configuration, data migration, training, testing, and post-implementation support.
10. Kemampuan Kustomisasi
Customization is needed so the system can follow the bank's structure, methodology, and reporting needs without reducing control or ease of maintenance.
Internal Audit Software Benchmarks for Banking
Several platforms can serve as references when banks draft their requirements or a request for proposal.
| Platform | Relevant Focus | Catatan Evaluasi |
|---|---|---|
| TeamMate | Risk-based audit, audit lifecycle, issue tracking, and financial services | Relevant as a global solution benchmark for financial institutions |
| MetricStream | Audit universe, centralized risk framework, audit planning, and board reporting | A good reference for integrating audit and GRC |
| Ideagen Internal Audit | Risk-based planning, control testing, working papers, resource management, and reporting | Provides use cases for banking and financial services |
| Four Media | Risk assessment, program templates, reminders, follow-up monitoring, and audit reports | Can serve as a reference for an audit application provider from Indonesia |
| Audithink | Risk assessment, planning, program templates, working papers, findings, monitoring, and automated reports | Relevant for Indonesian organizations that require flexible and customized workflows. Already has clients and case studies directly to the banking sector |
Comparisons should not be based only on feature counts. Banks also need to evaluate security, integration readiness, deployment model, implementation experience, total cost of ownership, and fit with the SKAI methodology.
Audithink as Internal Audit Software for Banks
Audithink is an internal audit management platform supporting the planning, execution, reporting, and monitoring processes in one system.
For banking needs, Audithink can be considered for supporting the following processes.
Annual Audit Universe and Annual Audit Plan
The SKAI can map the audit objects and draw up the audit plan based on priorities, schedule, scope, and resources.
Annual Risk Assessment
Risk criteria and weights can be configured to help determine audit priorities based on each auditable entity's profile.
Audit Programs and Working Papers
Auditors can use program templates, document procedures, manage audit evidence, and run the review process digitally.
Pengelolaan Temuan
Findings, recommendations, auditee responses, persons in charge, completion targets, and remediation evidence can be recorded in one platform.
Corrective Action and Evidence
Auditees can upload follow-up evidence, while auditors or reviewers can respond and verify.
Monitoring and Reporting
The status of running audits, findings, recommendations, and corrective actions can be monitored through reports and dashboards.
Approval Workflow and Audit Trail
The approval flow can support tiered review processes and help maintain accountability for activities within the audit process.
Audithink is scalable and customizable to the organization's needs. Even so, every bank still needs to perform a requirement assessment, security review, system testing, and gap analysis against internal policies and applicable provisions before implementation.
Tahapan Implementasi Software Audit Internal di Bank
1. Mapping the Current Audit Process
Identify the processes still manual, the data sources, the documents used, the approval stages, and the parties involved.
2. Menentukan Kebutuhan Fungsional
Draft the requirements from the audit universe, risk assessment, audit planning, and working papers to findings management and reporting.
3. Drafting Security and Technology Requirements
Set the standards for access, deployment, integration, backup, recovery, and security monitoring.
4. Carry Out a Gap Analysis
Compare the application's capabilities against the SKAI methodology, bank policies, organizational structure, and regulator provisions.
5. Menjalankan Proof of Concept
Use one or more audit scenarios to test the workflow, ease of use, performance, and reports.
6. Mengonfigurasi Sistem
Set up organizational structure, roles, audit universe, risk parameters, templates, finding classifications, and approval workflows.
7. Migrating Priority Data
Select active and historical data that is still relevant, then validate it before moving it.
8. Conduct User Acceptance Testing
Involve auditors, reviewers, auditees, administrators, and IT teams to ensure the system meets requirements.
9. Provide Training
Training needs to be tailored to the user's role to make system adoption more effective.
10. Evaluate After Go-Live
Monitor usage, constraints, data quality, workflow effectiveness, and further development needs.
Conclusion
Internal audit software for banks helps SKAI manage risk-based audits, annual audit plans, working papers, findings, follow-ups, and reporting through one integrated platform.
For commercial banks, regional development banks (BPD), rural banks (BPR), and rural banks (BPRS), audit digitization can improve efficiency, documentation consistency, transparency, and management visibility. However, applications must be selected through an evaluation that takes into account regulations, security, audit methodology, IT architecture, and the operational needs of each bank.
With features such as risk assessment, planning, program templates, audit documentation, monitoring findings, approval workflow, and automated reports, Audithink can be one of the choices of internal banking audit software that can be configured according to organizational needs.
Frequently Asked Questions
What is internal audit software for banks?
Internal audit software for banks is an application that helps SKAI manage the entire banking audit cycle, starting from risk assessment, planning, implementation, working papers, findings, reporting, to follow-up monitoring.
Is it mandatory for banks to use internal audit software?
Regulations govern the implementation of internal audit and bank governance functions, but this doesn't mean all banks are required to use a specific software product. Applications are used as supporting tools to make the audit process more structured, documented, and easily monitored.
Can the audit application be used by BPR and BPRS?
Yes. The application can be used by BPRs and BPRSs as long as the workflow, organizational structure, reporting, and features are tailored to the scale, operational complexity, and applicable regulations.
What are the most important features in banking internal audit software?
Key features include audit universe, risk assessment, annual audit plan, program template, digital working paper, findings management, corrective action, approval workflow, audit trail, dashboard, and automated reports.
Can Audithink be adapted to bank audit processes?
Audithink provides customizable workflows and features based on organizational needs. Prior to implementation, banks still need to conduct a needs analysis, gap analysis, security assessment, configuration, and system testing.
Digitizing Banking Internal Audit Processes with Audithink
Manage the bank's internal audit process in a more structured manner, starting from risk-based planning, working paper documentation, recording findings, to monitoring corrective actions in one platform.
Learn more about software audit internal Audithink, schedule an app demo, or contact Audithink team to discuss the needs of SKAI and internal audit digital transformation in your organization.
