Internal Auditors Must Walk Their Talk to Maintain Credibility

As internal auditors, we routinely advise management to operate more efficiently, streamline controls, and improve effectiveness. But in today’s environment of rapid change, constrained budgets, and rising stakeholder expectations, we must ensure that we’re holding ourselves to the same high standards.

When I led internal audit functions, I often found that the value of our work came under scrutiny during budget cycles. Resource constraints were a recurring challenge, and I quickly learned that being effective was no longer enough—we had to prove it. That meant aligning our operations with the expectations we set for others: operating efficiently, innovating continuously, and demonstrating measurable impact.

Efficiency and Effectiveness: Twin Imperatives for Modern Audit Functions

In 2025, internal audit functions face new performance expectations. Boards and executive teams want to see more than audit plans and issue tracking—they want to understand the ROI of internal audit. This means showing how we optimize resources, prioritize emerging risks, and deliver insights that support strategic decision-making.

Efficiency reviews can no longer be reactive responses to budget pressure. They must be built into the DNA of our audit functions. We need a continuous improvement mindset, one that actively questions legacy practices and looks for smarter ways to deliver value—especially through automation, analytics, and agile auditing methods.

Abandoning the “Meme Mentality”

A decade ago, I joked about the meme that asks, “How many internal auditors does it take to change a light bulb?” with the punchline, “It depends. How many did it take last year?”

Today, in an era of real-time data and AI-enhanced operations, that mentality is a liability. Internal audit must be faster, leaner, and more adaptable. The fundamentals of planning, fieldwork, and reporting remain critical—but how we execute them must evolve.

We should continuously evaluate whether our audit processes are still fit for purpose. Are we leveraging technology to accelerate audit cycles? Are our reports timely and actionable? Are we redeploying resources to address the most urgent risks, not just those scheduled on last year’s plan?

What Leading CAEs Are Doing Differently

The best audit leaders have adopted a metrics-based view of audit performance. They track cycle times, stakeholder satisfaction, and the ratio of recommendations implemented. They also create feedback loops with audit clients to refine their processes in real time.

Three critical areas help drive this transformation:

1. Understanding Organizational Strategy: Internal audit should mirror the organization’s pace. If the business is accelerating its digital transformation, audit needs to keep up—not just in what we audit, but in how we operate.
2. Aligning Talent to Risk: Efficiency isn’t just about technology. It’s about having the right people in the right roles. That means balancing experienced auditors with data-savvy professionals, AI-literate staff, and those with emerging tech or ESG risk expertise.
3. Embracing Innovation and Intelligent Automation: From continuous monitoring tools to generative AI for report drafting, we have access to technologies that can drastically reduce manual effort and enhance audit effectiveness. But using them requires bold leadership and a willingness to invest.

New Challenges, New Techniques

Technology continues to reshape our field. The adoption of cloud computing, AI, and real-time monitoring has improved the speed and depth of assurance—but it also introduces new cyber and compliance risks. As internal auditors, we must adapt our own methods to audit these risks effectively while using the same tools to modernize our own workflows.

Yes, automation can expose us to data breaches. But it also enables us to test entire populations of transactions, identify anomalies earlier, and communicate insights more persuasively. We must lead with a mindset that is both risk-aware and innovation-driven.

Internal Audit as a Model of Excellence

Gone are the days when internal audit could operate behind the scenes, quietly performing audits on its own terms. Today, we must be visible examples of efficiency and effectiveness. We must “walk our talk” not just to retain stakeholder support—but to earn it every day.

That means using performance metrics to tell our story. It means redefining how we deliver value. And above all, it means embodying the same standards of operational excellence we expect from the rest of the organization.

The stakes are too high for complacency. Efficiency and effectiveness are no longer just buzzwords—they are the expectations we must exceed.

As always, I welcome your comments.