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RAPPORT

Embracing the Next Generation of Internal Auditing

2019 Internal Audit Capabilities and Needs Survey

Now is the time to commit to the journey to evolve into a next-generation internal audit function. While this journey will be prolonged and marked with steep challenges, it is absolutely imperative given the intensifying nature of the digital transformation underway in the rest of the organization and the overall market.

The results of our 2019 Internal Audit Capabilities and Needs Survey, in which we take an in-depth look at the adoption of next-generation internal audit competencies such as agile auditing, artificial intelligence (AI), machine learning (ML), robotic process automation (RPA) and continuous monitoring, among many others, provide a detailed assessment of how internal audit groups are progressing on their next-generation journeys. 

It’s positive to see that most internal audit functions have launched innovation and transformation activities, starting their next-generation journeys. However, more substantive progress is needed in a number of areas if early-stage next-generation internal audit models are to mature and fulfill their massive potential. Undertaking this journey requires recognition that transformation consists of more than a collection of discrete activities; becoming a next-generation internal audit function requires a new mindset and a commitment to continual evolution. Some internal audit groups are ahead of the game, including most of those that reside within companies considered “digital experts” and “digital leaders.” Among other practices, digital leaders are far more likely than other organizations to appoint internal audit innovation/transformation champions. 

Also, in this year’s study, we take a broad look at overall priorities for internal audit functions, including their top audit plan priorities.

 

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