Regular readers of my blogs will know that I frequently share highlights from new research or thought leadership that sheds light on the trends and outlook for internal audit. Such reports from the ECIIA, Protiviti, IIA Global, and others tend to be published near the end of the year or early in the new year. They provide valuable insight into the results from the year that’s ending or the outlook for the year ahead.
However, as inflation started rising in 2021, this change indicates a reactive audit planning approach relative to risks — as does the fact that the other risks have remained constant. For organizations to better anticipate rapidly emerging and evolving risks, auditors must keep their eyes on the horizon, leveraging key risk indicators (KRIs) like economic forecasts, company strategy performance, and competition. In addition, with only 27% of internal audit leaders reporting extensive collaboration with risk management, stronger collaboration with risk and compliance teams will prove essential going forward.
Internal audit leaders today are being pulled in so many different directions. They’re optimistic about their ability to tackle a myriad of challenges, yet they’ll have to address any gaps within their department and their organization to successfully anticipate and manage the risks ahead. Going forward, only the most proactive internal auditors will be able to keep up with coming disruptions — and they’ll need the proper resources and tight organizational alignment to do so.
I welcome your thoughts on the report and any trends you are observing as we enter the second half of 2022.