Achieving Audit Relevance Internal audit’s path to continued delivery of value and relevance is strongly tied to adopting innovative approaches to talent, and technology enablement, per findings from Protiviti's 2023 Next-Generation Internal Audit Survey. High-impact reporting, which the survey results reveal is the most valuable driver of internal audit relevance, requires strong enabling technology as well as the right talent. Executive Summary Internal audit functions face a continuing talent crunch and ongoing demands to support the organisation’s transformation efforts in response to external events and evolving business strategies and priorities. Amid these challenges, chief audit executives (CAEs) are focused on enhancing internal audit’s relevance with the board, senior executives and other stakeholders. Download our Executive Summary For internal audit functions, elevating their relevance and the value they deliver requires ongoing evolution and a committed focus on continuous improvement through innovation and transformation. The results of Protiviti’s 2023 Next-Generation Internal Audit Survey reveal that when it comes to these objectives, many are pursuing them by focusing on access to required talent – filling the technology skills gap is an acute need – and advancing internal audit’s technology enablement, the maturity of which continues to lag other Next-Generation Internal Audit capabilities (a trend we have seen in prior years of our study). They also are focusing on producing and delivering highly impactful communications, including through the reporting process. What is relevance? High-impact reporting, which the survey results reveal is the most valuable driver of internal audit relevance, requires strong enabling technology as well as the right talent. We have observed that Next-Generation Internal Audit components related to technology and talent are often interrelated and self-reinforcing. Functions that are more active in their pursuit and use of data and technology, as well as innovation more broadly, tend to be more successful in attracting and retaining talent, and their resources tend to have more aptitude in and enthusiasm toward enabling tech and other next-gen capabilities. This combination is what tends to propel leading functions toward the goals of increased relevance and value. Download our Executive Summary Considering that the future of work – including access to talent along with the need to upskill and reskill teams – represents not only a pressing 2023 issue but one organisations must confront and manage over the next decade, assessments offered by CAEs and internal audit leaders regarding access to talent, sourcing strategies and executive/board-level support of these efforts reveal promising news. Board and executive-level support of internal audit’s talent acquisition and development activities is robust. With executive and board-level support in place, the onus is on internal audit leaders to define, communicate and execute against talent sourcing strategies that will give them access to skills and experiences needed for the near term and what is coming next. Read our key findings High-impact reporting, which the survey results reveal is the most valuable driver of internal audit relevance, requires strong enabling technology as well as the right talent. Top transformation priorities for CAEs and Audit Directors Evolving how the internal audit function coordinates and aligns with other assurance functions Internal audit strategy that is better defined and aligned to the overall organisation Increasing use of data and analytics solutions Most significant barrier to increased focus on innovation and transformation Competing priorities/lack of capacity Explore the results of our research Pro Document Consent Building Internal Audit’s Relevance CAEs and internal audit leaders view high-impact reporting and, more broadly, impactful communications as the top driver to establishing and building internal audit's relevance with the board, senior executives and other stakeholders. Learn more Pro Document Folder People and Talent A host of talent and skills-related issues represent significant challenges, and opportunities, for CAEs and internal audit leaders and their teams. Learn more Pro Location Globe Impactful Communications When identifying the one factor that makes their internal audit functions relevant, the top choice among CAEs and internal audit leaders and professionals is high-impact reporting. Learn more Pro System Security Use of Technology Investments in advanced analytics, machine learning, AI, process mining, automation, and other uses for data and enabling technology are key drivers of internal audit transformation. Learn more Detailed Findings: Assessing Next-Generation Internal Audit Maturity Levels View the maturity ratings for CAEs/Audit Directors and other internal audit professionals in Governance, Methodology and Enabling Technology competencies. Access to Necessary Talent and Skills View how CAEs/Audit Directors and other internal audit professionals rate their access to talent and skills within the different Governance, Methodology and Enabling Technology competencies. Board/Management Support for Acquiring/Developing Talent View to what extent senior management and the board/committees support acquiring or developing the necessary talent and skills related to Next-Generation capabilities in the internal audit function. Primary Strategy to Secure Talent and Skills View the strategies being employed to line up the talent and skills needed within the different Governance, Methodology and Enabling Technology competencies. Survey Methodology and Demographics Protiviti conducted its global 2023 Next-Generation Internal Audit Survey online from November through December 2022. More than 550 internal audit leaders and professionals (n = 573) completed the survey questionnaire, two-thirds of whom reported as a CAE or Audit Director. About Protiviti's Internal Audit Solutions About Protiviti's Internal Audit Solutions We deliver specialised talent, methodology and technology to meet the evolving needs of Internal Audit functions ranging from full outsourced solutions and delivery centers to tactical staff-augmentation. View Infographic Internal audit's value hinges on adopting innovative approaches to talent sourcing and technology enablement, per findings from Protiviti's 2023 Next-Generation Internal Audit Survey. View infographic
