From auditing around the computer to governing AI

In 1998, Nigeria's Central Bank orchestrated a "mass burial" of 26 banks, leaving 34 others insolvent, and depositors ruined. What went unnoticed was an unchecked cybercrime. Nigerian banks, rapidly digitizing, had no method to audit their computerized systems, leading to systemic blindness. The chief inspector of one top bank admitted his auditors could not penetrate computer systems.

This obscured the big picture: capital funds and customer deposits vanished without accountability. The solution was the rise of IT audit expertise. Auditors learned to use Audit Command Language (ACL) to interrogate every transaction, catching hundreds of millions in hidden irregularities. With this knowledge, banks licensed ACL and enlisted the help of EDP Audit and Security Associates, marking a shift from auditing around computers to auditing through them.

Nigeria's Central Bank and the Nigeria Deposit Insurance Corporation enlisted the team to train their auditors and examiners. This expertise became a staple in Nigeria's accountancy profession, with the Institute of Chartered Accountants of Nigeria (ICAN) appointing a founding chairman to ensure technology competence. Technology Competence Initiative mandated IT literacy for all newly inducted chartered accountants.

With this knowledge, IT auditors mapped control architectures, thwarted cybercriminals, and minimized systemic losses. Though not widely recognized, it was a quiet act of nation-guarding. Today, the same mantra applies to artificial intelligence: auditors must understand AI architectures, training data, and decision-making to ensure governability.

The ISACA chapter in Lagos, celebrating its 30th anniversary, stands as the embodiment of this commitment, rebuilding trust in Nigeria's financial system and fortifying its infrastructure.