AuditBoard has published its 2026 Focus on the Future report, highlighting how the internal audit profession is adapting to an era of heightened volatility characterised by fast-evolving interconnected risks.
Based on a survey conducted with 213 global internal audit pioneers, the report uncovers challenges posed by limited resources, the rise of artificial intelligence (AI), and the demand for redefining audit roles.
Addressing resource constraints with AI
The findings suggest that to navigate this new landscape, internal audit teams must leverage AI as a force multiplier and enhance team skills to add significant value.
This adjustment is crucial for thriving in the contemporary audit environment.
Converging pressures on audit professionals
Audit functions find themselves with expanded duties but stagnant or shrinking budgets
The report notes a significant gap between ambition and ability in the field, driven by several core challenges. A prominent issue is readiness for AI; although 39 percent of pioneers believe AI will considerably impact the profession in the next five years, only 28 percent feel confident about their team's ability to audit AI risks.
Furthermore, 63 percent of organisations have not defined a formal risk appetite or framework for AI, leaving auditors with minimal governance structures.
Resource limitations also remain a pressing issue. Audit functions find themselves with expanded responsibilities but stagnant or shrinking budgets; 43 percent of respondents see no change in their 2025 budgets compared to 2024, while 18 percent report reductions. Staffing levels are similarly stable, with 57 per cent maintaining unchanged headcounts despite increased demands.
Reevaluating the strategic role
The report reveals an ongoing identity crisis. Although more than half of the pioneers aspire to be viewed as trusted advisors, less than 25 percent believe their departments have achieved this perception.
This presents a particular risk, as departments seen merely as compliance units may become obsolete due to automation.
Skillsets for the future
While AI can improve auditor efficiency, it cannot replace unique human attributes
While AI can improve auditor efficiency, it cannot replace unique human attributes.
The survey identifies crucial skills for auditors in 2026 and beyond, such as professional scepticism, communication and relationship-building, ethical judgment, and critical thinking.
Future risks and opportunities
Richard Chambers, a Senior Advisor at AuditBoard, stated: "Internal audit stands at a tipping point. The pressures outlined in the report create unprecedented risk for the future of the profession."
He adds, "To thrive amid hyper volatility, internal auditors should utilise AI to automate routine tasks, freeing up teams to focus on more specialised tasks and move beyond merely reporting what is happening to become the foresight-driven strategic partners the business needs."
AuditBoard, the pioneering AI-powered global platform for connected risk, announced the findings of its 2026 Focus on the Future report, revealing the internal audit profession is navigating an environment of hyper volatility defined by accelerating, interconnected risks.
The survey of 213 global internal audit pioneers shows the profession is being challenged by three converging forces: persistently tight resources, the rise of AI, and a demand for role redefinition.
Overcome resource limitations
The report highlights that internal auditors must overcome resource limitations by leveraging AI as a capacity multiplier, while simultaneously upskilling their teams to provide greater value.
This is the only way the function can thrive in this next-generation environment.
Key findings: converging pressures on the internal audit profession
The survey identifies a dangerous gap between aspiration and capability, driven by these core challenges:
- AI readiness lags execution: Only 39 per cent of internal audit pioneers say AI will significantly transform the profession within five years. At the same time, readiness to provide assurance over AI lags behind adoption. Only 28 per cent of pioneers express confidence in their teams’ ability to effectively audit AI risks, and 63 per cent of organisations have not yet defined a formal risk appetite or governance framework for AI use, leaving internal auditors with little structure for oversight.
- The resource paradox: Internal audit continues to face expanding responsibilities with stagnant or shrinking budgets. 43 per cent of respondents reported no change in their 2025 budgets compared to 2024, and 18 per cent reported reductions. Staffing levels followed a similar pattern, with 57 per cent maintaining flat full-time headcounts despite expanding mandates.
- The identity crisis persists: Over half of the respondents aspire to be recognised as trusted advisors, yet fewer than a quarter currently feel their departments are perceived in this way. This is a critical vulnerability, as functions viewed purely as compliance enforcers risk being rendered irrelevant by automation.
Keeping a competitive edge
While AI can enhance efficiency, it cannot replicate the unique qualities that distinguish outstanding auditors. The survey identified the top skills differentiating auditors in 2026 and beyond:
- Professional scepticism and inquisitiveness
- Relationship-building and communication
- Ethical judgment
- Critical thinking
Risk for the future of the profession
Richard Chambers, Senior Advisor, Risk and Audit, AuditBoard, said: "Internal audit stands at a tipping point. The pressures outlined in the report create unprecedented risk for the future of the profession."
He adds, "To thrive amid hyper volatility, internal auditors should utilise AI to automate routine tasks, freeing up teams to focus on more specialised tasks and move beyond merely reporting what is happening to become the foresight-driven strategic partners the business needs."
