As the financial services world is undergoing a transformation, organizations are rethinking their operating models, responding to competitive pressures, adjusting to workforce shifts, and facing complex risk environments. Change is constant, and it affects every aspect of business.
This means that internal audit (IA) roles cannot be solely retrospective; they must also be forward-looking with a focus on promoting resilience, agility, and trust. Technology, data, and artificial intelligence (AI) are part of this story, but so are new business strategies, innovative service models, and evolving expectations of stakeholders. Together, these forces are redefining how IA delivers insight and assurance.
The opportunity is clear: embracing these changes head-on will position IA as a strategic partner and trustworthy function that can guide its organization through the latest wave of uncertainty.
The Technology Imperative
Traditional audit methods cannot keep up with today’s fast-moving, digital-first environment. The heightened risks introduced by new technologies and business models mean that more advanced approaches are required to achieve a reasonable degree of assurance, such as continuous auditing, predictive risk analytics, and AI-driven monitoring and quality control.
IA teams that embrace and integrate technology into their operations are positioned to gain momentum, relevance, and reputability within their organizations. For example, automated testing and real-time insights can free up time and resources to focus on higher-risk areas or risk impacting multiple functions or lines of business. Similarly, predictive analytics can help to identify hidden risk trends, allowing IA to proactively plan and deploy the appropriate subject matter expertise. Technology is no longer just a tool, but a requisite for agility, scalability, and stronger business alignment.
Flexible Resourcing: Building Agility Into the Model
With new risks like cybersecurity, data governance, and AI, IA functions cannot do everything alone. Flexible resourcing allows IA to scale up and pivot quickly. IA functions may consider the following staffing models:
- Co-sourcing: Brings in experienced subject matter professionals for specific skills and new risks.
- Outsourcing: Provides a turnkey strategy for organizations that need wide coverage without building it in-house.
- Staff augmentation: Adds immediate or ad-hoc support for projects, audits, or reviews.
The value isn’t in just choosing one model. It’s in building a mix of options that allows IA to remain responsive while achieving the necessary level of assurance you are comfortable with. In fast-changing environments, flexibility is a big advantage.
GRC as the Integrator
Governance, risk, and compliance (GRC) platforms tie together strategy, operations, and risk. For IA, GRC is the “single source of truth” across risk functions, allowing for integration, smoother workflows, automation, and consistent reporting both within and across the Three Lines of Defense.
With data and analytics, GRC platforms help IA move from static audits to real-time insights. This not only improves efficiency but also makes IA more impactful in managerial decision making by highlighting salient trends or insights into internal control performance.
Strengthening the Backbone: Process Risk & Controls
Even with advanced tools, IA still depends on strong foundations. Processes, risks, and controls form that base. The focus has shifted from simply documenting controls to building adaptable frameworks that grow with the business. By linking controls to core processes and outcomes, IA delivers insights that are practical and forward-looking. This creates resilience while avoiding the trap of static frameworks that quickly lose relevance in a fast-moving environment.
Expanding Into New Risk Domains
As organizations adopt AI, grow digital ecosystems, and move into increasingly data-driven business models, it is imperative that IA keep a close eye on the risks that these opportunities present. These include, but are not limited to:
- Cybersecurity and tech resilience
- Data governance and privacy
- AI and model risk
- Financial crime intelligence
Although each area requires specific knowledge, the themes remain the same: transformation, trust, and innovation. IA isn’t just about guarding against risks; it is also about enabling growth.
Looking Ahead
Internal audit is being reshaped by the same forces changing the financial services industry as a whole: innovation and transformation. The function’s future is more agile, tech-driven, and strategically aligned.
This evolution isn’t about adding one-off tools. It’s about connecting the dots. Embracing technology, flexible resourcing, GRC, and new risk insights will create an IA function prepared for what lies ahead.
In the months ahead, additional FORsights™, webinars, and insights from Forvis Mazars will dive deeper into these topics with real-world examples and lessons from across the industry. Stay tuned as we explore what it takes for IA to be future-ready. Until then, if you have questions about the technology imperative, reach out to one of our professionals.
Want to know more about the 2025 IIA Cybersecurity Topical Requirement or other global guidance? If so, check our FORsights below.