“Embracing the Future: How Technological Advancements and Expanding Roles are Shaping Internal Audit’s Path to 2035”

Embracing the Future: How Technological Advancements are Reshaping the Internal Audit Profession

In an era where technological advancements are rapidly transforming industries, the internal audit profession is not left behind. The latest Vision report from the Institute of Internal Audits and the Internal Audit Foundation, titled “Internal Audit: Vision 2035 – Creating Our Future Together,” reveals compelling insights into how technology is poised to redefine the role of internal auditors worldwide. Drawing on feedback from over 7,000 practitioners and stakeholders globally, the report paints a vivid picture of a future where technology not only enhances the internal audit function but also demands a significant shift in how auditors approach their work.

The report underscores a critical juncture for the internal audit profession, highlighting the necessity for auditors to broaden their service scope and integrate emerging technologies to remain valuable to organizations. With 97% of participants anticipating an increase in data complexity and volume, and 93% believing new technology will foster better insights for stakeholder recommendations, the message is clear: technological change is not just coming; it’s here.

Artificial Intelligence (AI) stands out as a pivotal tool in this transformation. While AI promises deeper analytical insights, less than half of the respondents are currently engaged in AI-related activities, signaling a gap that needs bridging. Anthony Pugliese, President and CEO of The Institute of Internal Auditors, emphasizes the urgency of this transformation, stating, “Internal audit must rapidly transform or risk becoming irrelevant to stakeholders.”

Moreover, the report reveals a growing expectation for internal audit functions to adopt a more strategic advisory role within organizations. A significant 79% of participants see advisory services becoming increasingly crucial, indicating a shift towards a more versatile and proactive internal audit function. This evolution reflects a broader trend of internal audit moving beyond traditional assurance to offer strategic guidance on operations, compliance, and risk management.

However, challenges remain. The report highlights concerns about the internal audit profession’s perception, with half of the respondents feeling misunderstood or undervalued. Additionally, there’s a pressing need to bolster the profession’s talent pipeline, with issues such as inadequate networking opportunities and a lack of mentorship deterring potential entrants.

Despite these hurdles, the future of internal audit looks promising, with technology acting as both a catalyst for change and a bridge to new opportunities. As Warren Stippich, Jr., President of the Internal Audit Foundation, notes, the profession is at a pivotal moment, requiring auditors to be both agile and versatile in their approach.

The Vision 2035 report not only offers a roadmap for the internal audit profession’s future but also serves as a call to action for auditors to embrace change, leverage technology, and expand their roles within their organizations. By doing so, internal auditors can ensure they remain indispensable to their organizations, helping them navigate the complexities of the modern business landscape. As the profession looks towards 2035, one thing is certain: the future of internal audit is bright, provided it can adapt, evolve, and embrace the technological revolution.