AuditBoard has unveiled its Focus on the Future 2026 report, shedding light on the evolving landscape faced by the internal audit profession.
According to the report, based on a survey conducted with 213 global internal audit pioneers, the industry must navigate a complex environment marked by the intertwined forces of limited resources, advancements in AI, and an evolving role definition.
Resource Constraints in Internal Auditing
Internal auditors are urged to address these resource limitations by adopting AI to amplify
Internal auditors are urged to address these resource limitations by adopting AI to amplify their capabilities and investing in team skill development to enhance their value.
This dual approach is deemed essential for adapting to the sector's next-generation demands. The report highlights key pressures impacting the field, focusing on the widening gulf between aspirations and current capabilities.
Challenges in AI Readiness and Governance
The audit sector faces significant challenges regarding AI readiness. While 39% of audit pioneers anticipate AI will significantly impact the profession within the next five years, only 28% feel confident in their teams' ability to assess AI-related risks effectively.
Additionally, 63% of organizations have yet to implement a formal risk appetite or governance framework for AI, leaving internal auditors without a comprehensive oversight structure.
Budget and Staffing Concerns
Despite growing faults, budgets for internal audit departments remain stagnant or shrinking
Another pressing issue is the resource paradox. Despite growing responsibilities, budgets for internal audit departments remain stagnant or shrinking, with 43% reporting no budget increase for 2025 over 2024, and 18% experiencing cuts.
Similarly, staffing levels have largely remained flat, with 57% maintaining the same full-time headcount even as responsibilities grow.
Perception and Identity in the Audit Profession
The report also uncovers an ongoing identity crisis within the profession. More than half of the respondents aim to be acknowledged as trusted advisors, yet only a minority feel their departments are currently seen in this light.
This perception gap is deemed a critical risk, as capabilities perceived only in terms of compliance may become obsolete with increased automation.
Essential Skills for Auditors
Despite the rise of AI, certain human skills remain irreplaceable for auditors striving for excellence
Despite the rise of AI, certain human skills remain irreplaceable for auditors striving for excellence.
These include professional skepticism, strong communication and relationship-building, ethical judgment, and critical thinking — skills identified as pivotal in setting top auditors apart from their peers.
Looking Ahead: Strategic Partnerships
Richard Chambers, Senior Advisor, Risk and Audit at AuditBoard, emphasized that internal audit is currently at a crucial intersection.
"To thrive amid hyper volatility, internal auditors should utilize AI to automate routine tasks, freeing up teams to focus on more specialized tasks and move beyond merely reporting what is happening to become the foresight-driven strategic partners the business needs," stated Richard Chambers.
