Article Search : Mrs. Nurrul Syakira Bakhtiar (Accountant, Internal Audit Division)

By: Logan Wamsley (associate manager, content development at The IIA)

This article is based on the original publication titled “Internal Audit’s Advisory Shift”, published on https://internalauditor.theiia.org

Technological advancement, globalization, and increasing stakeholder expectations are accelerating the transformation of internal audit from a provider of assurance services to a strategic advisor that delivers insights and business solutions to the organization.

Since its establishment by The Institute of Internal Auditors (IIA) in 1941, the internal audit function has evolved from its traditional role as a financial monitor to an independent partner supporting the organization’s risk management process. This evolution continues in line with compliance requirements under the Global Internal Audit Standards.

The Vision 2035 Report highlights a shift in the allocation of internal audit responsibilities. Currently, approximately 76% of time is dedicated to assurance services and 24% to advisory services. In the future, assurance services are expected to decrease to 59%, while advisory services will increase to 41%, reflecting a dual responsibility role.

This transformation significantly impacts the internal audit process, including:

• Risk Assessment: Becoming a more active and evolving process, based on an understanding of audit objectives and the organization’s strategic goals.
• Audit Process: Audit testing and data sampling are increasingly personalized and supported by automation technologies and real-time monitoring.
• Audit Reporting: Extending beyond findings and observations to include more detailed recommendations aligned with organizational objectives.

In this evolving landscape, internal auditors must combine technical expertise with business acumen to understand organizational goals comprehensively and deliver value through their advisory role.

However, this transition also presents several challenges:

• Credibility: Built through quality work, audit approach, and stakeholder relationships.
• Resources and Expertise: Requiring the adoption of tools and technologies to support risk analysis and audit activities.
• Time Management: Optimized through the use of technologies such as artificial intelligence and Agile frameworks to enhance efficiency and collaboration.
• Independence and Objectivity: Maintained through clearly defined boundaries between audit and consulting roles to avoid conflicts of interest.

In conclusion, the internal audit function must remain adaptive and responsive to change. While assurance services remain the foundation, advisory services are essential to ensure internal audit remains relevant and continues to support organizational objectives in an increasingly dynamic risk environment.

Date of Input: 16/03/2026 | Updated: 02/04/2026 | muhammad.isam