“Internal audit functions will soon look and operate very differently than they do today. We are in exciting and dynamic times for the profession, where the opportunities to engage with and adopt truly transformative technologies have never been easier.”
These statements, which we offered in our recent white paper, The next phase: AI and human collaboration powering internal audit transformation, underscore our vision for the future of internal auditing. Based on what we saw in the nominations for our inaugural Audit Innovator Award program that launched last year, the future is already here. From strategic realignment and influencing organizational culture to technology enablement and agile auditing, leading internal audit functions are focused on supporting and driving transformation as their organizations and their markets and industries undergo significant changes.
Our Audit Innovator Award program stands as a beacon of excellence in the field of internal audit, dedicated to advancing and recognizing ingenuity within the profession. We are proud of our 2024 winners, yet we learned much from all of the nominations we received in two categories: Audit Strategy and Transformation, and Technology Enablement. In the first of this two-part series, we take a look – with the help of Protiviti’s proprietary AI tools with which we analyzed all of the submissions – at best practices being employed under Audit Strategy And Transformation. (Part two will focus on technology enablement.)
So, what did we learn from these many impressive nominations about how organizations are advancing their audit strategy and transformation initiatives?
Vision and strategy for internal audit
Many organizations have established a forward-looking vision for their internal audit function that positions them as a guiding force for governance, risk management and innovative solutions. Internal audit teams are transitioning from traditional compliance-focused audits to a more dynamic, risk-based approach that prioritizes high-impact areas and strategic business objectives. In addition, they are working to transform their roles to become strategic partners in the organization, expanding their focus to include operational efficiency and proactive risk identification, enhancing audit coverage, and acting as agents of change.
Influence on organizational culture
Leading internal audit functions aim not just to assess but also to influence organizational culture. As part of a broader shift beyond traditional compliance-focused auditing to a more strategic mandate (as noted above), they are looking to align their audit practices with cultural values. Audit teams are cultivating behavioral competencies and fostering environments where feedback is both given and received constructively, enabling them to navigate cultural shifts with agility and empathy.
Of note, this transformation is accompanied by a digital-first mindset, where internal audit teams leverage technology and gamification to drive innovation and engagement. Along these lines, by establishing continuous feedback loops with stakeholders, leading internal audit functions are refining their methodologies and tools in real time, positioning themselves as proactive partners in organizational growth. These efforts reflect a broader transformation in which audit is no longer viewed merely as a back-office function but also as a catalyst for strategic change.
Adoption of new standards and practices
Leading internal audit teams are aligning with The Institute of Internal Auditors (IIA) Global Internal Audit Standards that redefine their roles and capabilities, enabling them to become more strategic and forward-looking. A key part of this effort is the adoption of agile auditing methodologies, which enhance efficiency and responsiveness by focusing on high-risk areas, using sprints, and breaking down audits into manageable, adaptable components. They are supporting this shift with investments in training and development, equipping internal audit professionals with the skills to leverage emerging technologies and think more strategically about risk and controls.
To further increase their impact, internal audit teams are also simplifying their reporting processes through concise, visually engaging formats like one-page summaries and dashboards that highlight actionable insights. These enhancements not only improve stakeholder engagement but also reinforce the internal audit function’s value as a proactive, tech-savvy partner in driving enterprise growth and success.
Alignment with enterprise goals
Leading internal audit teams are positioning themselves as integral partners in driving enterprise success. This involves educating stakeholders about the internal audit function’s evolving role, fostering stronger relationships across the business, and ensuring the internal audit vision reflects the enterprise’s mission, strategy and annual goals. These internal audit functions are redefining their performance metrics to emphasize goal achievement as well as the quality and strategic impact of how those goals are met. They are also prioritizing cross-functional collaboration with IT, risk management and compliance to create a more cohesive and integrated approach to governance and risk oversight.
Transformation and impact
Leading internal audit functions are serving as change agents, helping to drive organizational transformation through agility, innovation and technology enablement. For example, many teams are adopting self-service tools, automated processes and integrated GRC platforms like AuditBoard to streamline workflows and enhance visibility across audit activities. The use of advanced technologies – including AI, data analytics and continuous auditing tools – is enabling more proactive risk management, allowing internal audit teams to identify and mitigate risks in real time rather than relying solely on retrospective assessments. This tech-forward approach is complemented by a culture of continuous improvement, where agile methodologies and ongoing learning ensure that internal audit functions remain responsive and strategic amid a rapidly evolving risk landscape.
Challenges and lessons learned
Internal audit’s collaboration with other leaders and groups in the organization is vital. Yet managing change across these diverse stakeholder groups – including audit committees and broader organizational functions as well as the audit team itself – remains a complex challenge. Successful internal audit strategies center on collaborative approaches and structured feedback mechanisms that foster transparency and alignment. These efforts are tied closely to a culture of continuous improvement, where lessons learned are applied to refine audit processes and outcomes. By promoting team engagement and leveraging stakeholder input, internal audit functions can enhance operational effectiveness and reinforce their role as adaptable, forward-looking partners in organizational transformation.
Adding value
Finally, a recurring theme in all of these best practices is value delivery. Internal audit continues to demonstrate its strategic value by making meaningful contributions toward risk mitigation, governance and assurance validation. Many internal audit teams drive tangible improvements by delivering insightful validations and developing robust processes and controls. A strong emphasis on stakeholder engagement is another recurring theme, with leading internal audit functions enhancing collaboration across departments and maintaining open, effective communication with management and the board. This has led to increased recognition from audit committees and executive leadership, who consistently provide positive feedback on internal audit’s contributions.
In closing, we can see that these best practices underscore the evolving role of internal audit – not just as a compliance function, but also as a trusted advisor and integral partner in organizational success.
In our next article, we’ll review the best practices gleaned from our Audit Innovator Award program in the Technology Enablement category. Learn more here about our 2025 Audit Innovator Award program and to apply. Deadline for submissions is October 5, 2025.
