The internal audit landscape is shifting dramatically and, if you’re an internal auditor, you know that career growth depends on adaptation to improve how you help organizations identify, understand, and manage critical risks. Learn the top five auditing trends shaping the industry.
Summary
The internal audit landscape is dramatically shifting, requiring auditors to adapt to the IIA’s updated Global Internal Audit Standards, manage critical risks associated with cybersecurity, digital disruption (including GenAI), and geopolitical uncertainty, while also developing creative resource strategies to address expanding business risks and continuous regulatory updates.
1. The IIA’s new Global Internal Audit Standards
The Institute of Internal Auditors® (The IIA) updated its Global Internal Audit Standards in 2024, increasing focus on how internal auditors can provide more strategic value to their business. Among its updates, the new standards require that Chief Audit Executives (CAEs) develop audit, resource, and technology strategies to help their audit teams adopt more impactful roles.
As a busy audit professional, implementing these new standards may take time and effort. However, your ability to leverage the latest tools, like The IIA’s self-assessments or entity-risk-based audit planning capabilities, can help you conform to the standards and more effectively support your clients or organization.
2. Cybersecurity and digital disruption
Technology continues to be both the biggest risk and the biggest opportunity for internal auditors. With evolving AI in auditing and other tech tools, cybersecurity and data privacy continue to be vulnerable points in any organization and internal audit professionals need to ensure that their practice helps identify and protect against these risks.
On the other hand, internal auditors have a responsibility to leverage technology to improve their value and efficiency. By learning to leverage AI-powered tools, implementing cloud-based programs, and effectively incorporating new technology into their workflow, they can be more effective for their organizations and provide both better and faster audit services.
Within the realm of auditing technology, specific auditing trends to watch include:
- AI and machine learning tools: AI-powered features are consistently added to auditing software, helping you more quickly analyze data, find discrepancies, detect and predict risks, and ultimately, provide auditing services.
- Cybersecurity audits: Cybersecurity threats are more complex and dangerous, as tech continues to advance. As an auditor, you must be prepared to provide more frequent and thorough audits in to mitigate data security risks.
- Fraud audit software: Fraud audits are a cornerstone in the auditing practice, and specific fraud audit software is becoming more advanced and capable to both detect fraud and provide predictive insights that help get ahead of potential fraudulent activity.
- Blockchain: Blockchain technology is taking over the audit practice as the most transparent and effective ledger system. Blockchain prioritizes recording every transaction and maintaining these records tamper-free, empowering auditors to access more clear and accurate information to verify the integrity of financial statements and detect any inaccuracies. Blockchain also decentralizes the administration of financial data, enhancing information's reliability.
- Remote work: Auditing isn't alone is becoming a more remote industry. However, as the profession also adopts a more remote workforce, understanding and relying on technology to support every aspect of your job is becoming increasingly important.
3. Geopolitical uncertainty
Politics, regulations, and international relations have a big impact on a company’s business and the uncertainty of these interactions stands as a high risk for organizational decision-making.
This auditing trend affects your work as an internal auditor because you must not only stay on top of the evolving geopolitical scene and understand new regulations and relationships, but also consider how these changes affect business decisions and plan to mitigate the associated risks.
ESG audits
One key area that continues to affect regulation internationally, but is not yet consistent across the board, pertains to business Environmental, Social, and Governance (ESG). ESG is not only vital to an organization's reputation and social accountability, but government entities also require ESG audits to meet regulations and maintain compliance. As an auditor, you must stay up-to-date on current regulations and ESG auditing best practices, as ESG audits take center-stage for organizations worldwide.
4. Risks vs. resources
Companies increasingly rely on internal auditors to provide risk assurance services, as business risks also continually expand. However, this need, against a talent and resource shortage in internal auditing, puts a strain on risks vs. resources.
One opportunity for growth in your career is through adapting to this auditing trend and finding creative strategies to meet the current need—improving risk assurance services efficiency by co-sourcing teams or effectively implementing time-saving technology, for example.
5. Regulatory updates
Regulatory change is consistently identified as a high risk and a high audit priority globally. Recent updates impacting auditing practice have focused on topics including ESG and sustainability (as mentioned above), digital regulation, SAP cloud user counts, and more.
It’s important to understand general auditing trends and specific regulation updates to provide the best services to your clients and firm.
Grow as an internal auditor
Working as an internal auditor includes constantly learning new auditing trends and skills to improve your practice. And there is no better way to improve your knowledge (and career!) than by becoming a Certified Internal Auditor® (CIA).
The CIA certification is not only the gold standard of auditing, bit it’s also managed by The IIA. By learning the information and passing the CIA Exam, you guarantee that you’re up-to-date on the latest Global Internal Audit Standards, in addition to better serving your organization or clients.
Learn more about how to become a CIA, the CIA Exam, and the career opportunities you open as a CIA in our free, downloaded CIA Exam Guide!
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