IA and AI
For the past 20 years, Protiviti has been publishing a regular whitepaper series on leading practices by internal audit functions titled “Internal Auditing Around the World.” For its milestone Internal Auditing Around the World 20th Anniversary Edition, Protiviti elected not to focus on the practices of individual internal audit teams, but instead to chronicle the progress the profession has made during the two decades of the series.
Summary of Findings:
- Strategic Evolution: Internal audit functions have shifted from compliance-focused roles to strategic partners, adding significant organizational value.
- Value Delivery: The focus has broadened from compliance to a wide array of assurance and advisory services, redefining internal audit as a key provider of strategic insights.
- Board Engagement: Internal audit leaders are now more engaged with boards, advising on high-risk areas such as cybersecurity, fraud, and sustainability.
- Technology Integration: The modernization of internal audit is driven by advancements in data analytics, automation, and AI.
- Talent Development: Leading audit functions prioritize diverse talent, emphasizing both technical expertise and soft skills like communication and critical thinking.
- Agents of Change: Top-tier internal audit teams act as catalysts for organizational change, helping to mitigate risks and seize opportunities.
Future Strategic Directions:
- Prioritize Transformation: Align internal audit transformation efforts with both immediate business needs and long-term strategic planning, focusing on enhancing processes, customer experiences, and operational efficiencies.
- Lean on Technology: Embrace technology as an integral part of audit practices to enhance the relevance and value of internal audit.
- Cultivate Talent: Develop high-performing professionals who can address complex risks and bring strategic focus to internal audit.
- Adopt an Innovation Mindset: Approach organizational challenges with innovative solutions, extending beyond just technological advancements.
- Strategic Partnering: Enhance collaboration and communication to align internal audit priorities with those of the board and C-suite, ensuring that internal audit remains a strategic partner in the organization.
Protiviti’s report underscores the importance of these strategies for Chief Audit Executives (CAEs) and their teams to remain at the forefront of the evolving internal audit profession and their teams to remain strategic, highly relevant, focused on value and opportunities, centered on risk, and empowered by technology as advisors.