View from the top: Proactive evolution

Change is constant and ubiquitous in every facet of our lives – in financial and labour markets, social and cultural trends, the geopolitical situation, and the technologies we rely upon. It is one of the missions of the internal audit profession to assess these changes proactively and explore how we can not only manage the risks they pose, but also harness the potential value they offer the profession.

I recently had the privilege of attending the Audit & Risk Awards event in London, where I was honored to present the Internal Audit Advocate award. This category celebrates internal audit practitioners who have elevated the profession’s reputation and equipped the next generation of internal auditors. Such an award underscores the importance of reflecting on how internal audit can offer impactful value to organisations and their stakeholders within a rapidly changing risk environment. In this pursuit, The Internal Audit Foundation has developed numerous research reports – including The 2024 Risk in Focus report, The 2024 North American Pulse of Internal Audit report, and the Fueling the Internal Audit Student Talent Pipeline report – designed to assess the evolving risk landscape and fine-tune how we continuously raise our standards of service to organisations.

Across all reports, technology was critical. In Risk in Focus, cyber security ranked as the highest concern for internal audit across North America and Europe, and digital distribution was identified as a top risk area for organisations globally in the next three years. 

Similarly, the Pulse survey revealed that technology-related risks continue to dominate the attention of internal audit functions and that risks related to cyber security and IT top the agenda in many internal audit plans. On the same theme, the Pipeline report showed that advancing technology means that hiring managers must consider candidates with skills related to cyber security, data analytics and artificial intelligence (AI). The future of the profession will be shaped by recent graduates who are familiar with, and confident embracing, technological change.

Understanding technology’s transformative role in the broader risk landscape not only enables internal audit professionals to serve our clients better, but also empowers us to chart a path forward. I’ve spoken previously about the importance of not reacting to change passively, but of leveraging our understanding of how the global environment is evolving to create our own future. This mission is embodied in The Internal Audit Foundation’s forthcoming project, “Internal Audit: Vision 2035 – Creating Our Future Together”. Vision 2035 is a significant research project that was initiated in early 2023 and will be unveiled at The International Conference this month.

The project’s output will be a roadmap to embracing the opportunities that will shape the future of the internal audit profession. It will identify the steps to make this goal a reality and detail how we collectively move the profession forward, secure our relevance and central role within organisations, attract talent and elevate our standards.

While emerging technology such as AI and advances in cyber security and data analytics affect the type of work we currently do and the way we perform it, these will be central to the next generation of internal audit professionals. The Vision 2035 project explores how technological change melds with the broader future of the internal audit profession and examines the impact technology will have on the profession from various angles. It will enable us to detail not only how the technology landscape has evolved and the potential risks to consider, but also how internal audit functions might harness emerging technology to improve performance and the service to stakeholders.

Technological evolution is just one (albeit significant) part of the equation as we consider our vision for the future of the profession and how we get there. We must prioritise a comprehensive and holistic assessment of our path forward, exploring all opportunities to increase enthusiasm for the profession, educate organisations about the value of internal audit and preserve the independence and objectivity of internal audit functions.

The project includes comprehensive feedback from many professionals in the internal audit ecosystem, including internal auditors at all levels, IIA Global leaders, board members, senior executives, regulators, educators, students and others. The research draws on input from more than 7,000 participants as well as thorough analysis of social media data, industry and academic literature and more.

I am extremely excited to share this report with the profession. Collectively, it will galvanise us to chart a bold, ambitious path to the future.

To learn more about the Vision2035 project, visit: www.theiia.org/vision2035.

This article was published in July 2024.