Now is the time to commit to the journey to evolve into a next-generation internal audit function. While this may be a long journey marked with significant challenges and undoubted setbacks, it also will be an exciting transformation with great rewards for our internal audit teams and the stakeholders we serve.
The results of our 2019 Internal Audit Capabilities and Needs Survey, in which we take an in-depth look at the adoption of next-generation internal audit competencies such as agile auditing, artificial intelligence, machine learning, robotic process automation and continuous monitoring, among many others, provide a detailed assessment of how internal audit groups are progressing on their next-generation journeys.
It’s encouraging to see that most internal audit functions have launched innovation and transformation activities, starting their next-generation journeys. However, more substantive progress is needed in several areas if early-stage next-generation internal audit models are to mature and fulfill their massive potential.
Our Key Findings:
- Three out of four internal audit groups are undertaking some form of innovation or transformation effort.
- Overall, the adoption of next-generation internal audit capabilities is in its early stage.
- Chief audit executives need to take the lead in getting the function’s transformation on the audit committee agenda.
- ERM, cybersecurity risks, vendor and third-party risk management, and fraud risk management are top audit plan priorities.