Businesses are constantly evolving to meet new regulations, innovations and business models. As a result, these changes present new changes and trends that may transform internal audit (IA) functions. Since every year presents changes, the top trends will impact internal auditors.
1. Cloud Hosted Environments
Internal audit processes will assess the growing use of the cloud and view it as a new technology environment within their scope. Internal auditors will not treat cloud-hosted environments as components to audit separately.
2. Privacy Compliance
As data privacy regulations become more stringent, internal auditors must be well-informed about changes and potential privacy risks.
3. Cybersecurity Regulations
The increasing cyber threats potentially lead to data breaches. Internal auditors must be involved in cybersecurity regulations to mitigate cyber risks within key internal controls.
4. Third-party Risk Management
Third-party risk management helps mitigate risks around noncompliance, penalties, etc. In addition, internal audits will help detect critical and high-risk third parties to ensure proper evaluation and monitoring.
5. Data Analytics and Insights
Internal auditors will use data analytics and insights to improve processes and controls by expanding risk coverage and audit scope.
6. Automated Assurance
Automating core assurance to greater extents will help internal auditors achieve high-level assurance for large transaction populations by constantly testing and auditing controls.
7. Business Critical IT Controls
Internal audits will focus on IT controls to address cyber irks and core technology and ensure information availability, integrity, and confidentiality controls.
8. Data Management and Governance
All internal audit functions will turn to good data governance and management processes to manage missing, unreliable and inaccurate data risks.
9. Digital Transformation and Change
Internal auditors will proactively examine an organization’s innovation and digital transformation strategy and practice to ensure it aligns with the long-term business plans.
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10. Identity and Access Management/Privileged Access Management
Internal audits will review privileged access management policies and approaches to ensure that respective solutions fit the company’s requirements.
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Internal auditors must equip themselves with the right tools and resources to stay on time with the latest advancements and developments. These changes will rapidly transform businesses in all areas.
