Beyond the hype: why internal audit needs audit-centric AI training
The internal audit profession is at a critical juncture. While AI tools proliferate across business functions, and internal audit teams experiment with tools such as ChatGPT and Copilot for report writing, a potential gap is emerging between casual AI use and the structured, disciplined application needed for professional audit delivery.
This is why the Chartered IIA is launching a new comprehensive masterclass to run in late January, early February and again in March 2026. This will be a four-day intensive masterclass delivered across two sessions of two days each, that will reimagine how AI can augment every aspect of audit engagement delivery. James Paterson and Stephen Foster, who have designed and will lead the programme explain why it is necessary and what attendees will gain.
The risks of "picking it up as we go"
“We're seeing a fascinating paradox in the profession,” says Paterson, a former Chief Audit Executive (CAE). “Auditors who would never dream of conducting an audit without proper planning are either not using AI or are using AI on a ‘best-efforts approach’, but sometimes with limited training. They're doing their pragmatic best, but with tools that could fundamentally transform – or undermine – their professional credibility.”
Recent surveys suggest that over 70% of internal audit functions are already using AI tools in some capacity, yet fewer than 15% have formal training programmes or governance frameworks in place. The result can be inconsistent quality, compliance concerns, and missed opportunities for genuine transformation.
Foster, who is also a former CAE and who specialises in AI training and implementation for audit functions, has witnessed this evolution in his workshops on specific AI applications. “When I started running focused sessions on using AI to augment work programme development or report writing, it became obvious that participants needed something more comprehensive,” he says. “They'd master one prompt or feature application but struggled to see how it connected to the broader audit lifecycle. That's when we decided to create a course that brings together key AI tools and audit techniques in the context of delivering an assignment.”
Critical thinking meets computational power
The new masterclass will launch in late January and will be very different from generic AI training or audit knowledge programmes. Instead of teaching AI tools in isolation, it embeds these within the realities and subject matter of audit delivery – including addressing the perpetual tension between speed and quality that defines modern internal audit.
“There's a misconception that AI is simply about doing things faster,” Paterson says. “But internal auditors are not just looking for any information, we're seeking critical information that's material to our assurance conclusions. AI can help us move faster and be more thorough, but only if we direct it properly. It's about focusing what we do, not simply getting through more because we can."
Day one of the course therefore doesn't begin with AI tools, but with engagement scoping. Participants will learn how to use AI to refine scope boundaries continuously based on emerging risk indicators. It's a practical example of “critical information seeking”, using AI not just to gather and analyse data, but to explore what truly matters.
“I've seen AI generate extensive audit reports in minutes, but if those reports don't address the critical risks or comply with professional standards, what value have we added?” Foster adds. “We need to maintain our professional scepticism even as we embrace these powerful tools.”
The compliance imperative
The programme will explore the need to adhere to Global Internal Audit Standards (GIAS) while leveraging AI’s capabilities. What options and approaches are there to support AI-augmented audits so theyare morelikely to withstand quality assurance and improvement programme (QAIP) and external quality assessment (EQA) scrutiny?
Recognising the need for EQA-safe implementation reflects a broader shift in thinking about AI in professional services. Rather than viewing compliance as a constraint, the masterclass positions it as a framework for excellence.
Learning from early adopters
The insights Foster has gained from previous AI workshops help to shape the new programme's approach. “Participants consistently report mindset shifts,” he explains. “They arrive thinking AI is intuitive and leave understanding that it requires discipline and learning, with a fundamental understanding of its limitations and capabilities. Recognising that you need to adapt to a new way of working and a different role in this future partnership is essential for success.”
There are already stories of AI initiatives being cancelled, reversed, or failing to provide returns. This is true for most new technologies and often stems from overconfidence or ignorance about what drives successful implementations. Many people therefore recommend introducing AI gradually, first exploring augmentation and limit testing before chasing agentic solutions. The technology is too new and opaque, and evolving too rapidly, to adopt without sufficient guardrails and awareness.
Act now
However, there is no time to delay – especially since others across your organisation are likely to be using AI already in multiple ways and internal audit needs to understand and support this use. “Boards are already asking CAEs about their AI strategy,” Foster points out. “If internal audit lags behind other functions in AI adoption, it undermines our credibility as advisers on emerging risks and opportunities. It also raises questions about our ability to assure it.”
We therefore need structured training now, before bad habits become embedded in audit practices. “We're at a crucial moment,” warns Ann Brook, Head of Technical Content and Research at the Chartered IIA. “Teams are developing their AI practices now and sharing them as best practice, which may be true in one context but not another. Sharing practice is important, but if we wait another year or two, we may need to unlearn mixed practices rather than being certain we have good ones from the start.”
Participants in the masterclass will leave not just with skills, but with implementation guidance. The final day includes sessions on change management and building an AI strategy for internal audit, recognising that technical skill alone doesn’t guarantee adoption.
Hands-on, minds-on learning
The programme's structure reflects insights into adult learning and professional development. Following dedicated internal audit best practice sessions, participants will engage in hands-on practice with real audit scenarios. Having two facilitators enables breakout sessions, so participants can benchmark approaches and share challenges from their own organisations.
“We've all sat through training where the concepts sound great, but you don’t know how to apply them on Monday morning,” Foster acknowledges. “That’s why every subject and technique we teach is applied to a realistic audit scenario. We will share prompt techniques and project workflows and will create custom tools and templates together that can be used immediately.”
This practical focus extends to the choice of AI platforms. Rather than promoting a single solution, the masterclass uses multiple platforms, including ChatGPT, Claude, Copilot, and others, so participants can make informed tool choices. And even if they are not using a variety of AI tools, seeing how the others work reveals more clearly the ‘flavour’ of the different products.
Defining next-generation training
This masterclass is intended to set a new standard for professional development in the AI era, fusing technical skill, professional judgment, speed, quality, innovation and compliance. “This is what next-generation internal audit training looks like,” Foster says. “It's not about choosing between traditional audit skills and new technology. It’s about amplifying our professional capabilities through thoughtful, disciplined application of AI tools.”
Paterson agrees. “We all have an obligation to the profession to get this right. The organisations we serve are counting on internal audit to provide assurance in an increasingly complex, AI-driven world. We can't do that if we don’t deeply understand these tools ourselves.”
The path forward
As internal audit functions globally grapple with AI, these masterclasses offer a model for professional development. AI proficiency isn't optional for audit teams, but it must be built on a foundation of professional standards, critical thinking and disciplined AI use.
“The auditors who thrive in the next decade won't be those who resist AI or those who blindly embrace it,” Paterson concludes. “They'll be the ones who wield it with precision, judgment and professional discipline. Stephen and I believe this is not just about developing AI auditors, but helping audit leaders to use AI skilfully, seeing the huge benefits as well as the many hidden risks.”
The AI & Internal Audit Masterclass runs in open format in Jan/Feb 2026 and again in March 2026 (across two two-day webinars online). It is also available in a tailored format for in-house and in-person development on request.