Increasing the scope

Matching Internal Audit talent to business needs

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Only 27% of respondents say that Internal Audit is heavily involved in identifying, assessing and monitoring emerging risks currently. However, 54% say they expect to be more heavily involved in the next two years.

47% of respondents say they currently complete a separate emerging risk assessment. That number is expected to increase to 72% in the next two years.

Economic stability topped the list of respondents’ emerging risk concerns, followed by cyber security, major shifts in technology, strategic transactions in global locations and regulations around data privacy.

This will include shifting the balance between assurance and advisory audits to achieve greater business insights.

Internal Audit needs to move beyond the standard compliance focus and to continue to drive business and strategic insights.

Internal Audit Mandate

In our survey, 96% of respondents say that advisory comprises some portion of their audit plan, an increase of 6% from last year’s survey. For 52% of respondents, advisory reviews comprise 25% or more of the audit.

Finding the right balance is unique to each organization and its strategic objectives. It is also important to note that this balance will teeter between assurance and advisory audits as the organization’s risk tolerance or strategic goals change.

What are the top emergingRisks that your organization is tracking/monitoring?