The Internal Audit Foundation's 2025 North American Pulse of Internal Audit report is out, and it's a treasure trove of insights for Chief Audit Executives (CAEs) and internal audit professionals across North America. This year's report, based on a survey of approximately 400 respondents, sheds light on crucial benchmarks and trends shaping the future of internal audit. A clear message emerges: data analytics is no longer a luxury, but a necessity.
Key Findings: The Data Analytics Imperative
Among the most striking findings is the overwhelming consensus regarding the importance of data analytics. Ninety-two percent of CAEs identify data analytics as the most critical technology skill for the future of the profession. However, a significant gap exists between this recognition and actual implementation. Only 28% of respondents reported high or advanced levels of data analytics usage within their internal audit functions.
This disparity underscores a pressing need to bridge the gap between acknowledging the importance of data analytics and effectively integrating it into audit processes. The report also highlights that data analytics is the top competency CAEs want to improve among their staff, signaling a clear demand for upskilling and training in this area.
The Evolving Role of the CAE
CAEs are increasingly taking on responsibilities beyond traditional internal audit functions. Nearly 90% of respondents reported having additional responsibilities, with fraud investigation, Sarbanes-Oxley (SOX) compliance, and ethics/whistleblower programs being the most common. Additionally, the report indicates a growing trend of CAEs being responsible for Enterprise Risk Management (ERM).
Technology and GenAI
The integration of technology, particularly Generative AI (GenAI), is another key trend highlighted in the report. Approximately 40% of CAEs reported using GenAI for internal audit activities, with Millennial CAEs leading the way. However, the report also emphasizes that technology skills are critical, and data analytics tops the list.
Audit Planning and Outsourcing
Audit plans continue to focus on operations, compliance, and SOX, but there's a growing emphasis on IT and cybersecurity. Moreover, outsourcing is becoming increasingly common, particularly for cybersecurity and IT, especially in the financial services sector.
Remote Work and Staffing
The trend towards remote work appears to be stabilizing, with a slight shift towards more in-person work compared to the previous year. Staffing remains a challenge, with nearly 70% of CAEs having to recruit to fill new or vacant positions.
Supervizor Capabilities Dovetail with Report's Findings
Supervizor's financial risk discovery and monitoring capabilities well align with many of the key findings of the Pulse of Internal Audit report. Specifically:
- Enhanced Data Analytics: Supervizor arms internal audit teams with advanced data analytics capabilities, enabling them to identify and analyze financial risks more effectively. The platform automates the monitoring and analysis of large datasets from disparate sources, providing actionable insights that improve audit efficiency and effectiveness.
- Continuous Monitoring: Supervizor's continuous monitoring capabilities align with the report's emphasis on proactive risk management. By continuously monitoring financial transactions and identifying anomalies, Supervizor helps internal audit teams stay ahead of potential risks.
- Improved Efficiency: By automating many manual audit tasks, Supervizor frees up internal audit professionals to focus on higher-value activities, such as strategic planning and advisory services.
- Risk Management: Supervizor’s capabilities help CAEs manage the increasing amount of risk that is being asked of them. Supervizor pinpoints high-risk transactions for prioritized investigation.
- Addressing Staffing Challenges: Supervizor’s automation capabilities help address the staffing challenges highlighted in the report by increasing the productivity of existing internal audit teams.
- Fraud Detection: Supervizor was built by audit and accounting professionals to detect risk and help thwart fraud, and brings those items to the front of internal audit’s attention.
Summing it Up
The 2025 North American Pulse of Internal Audit report provides valuable insights into the evolving landscape of internal audit. Its emphasis on data analytics, strategic alignment, and technology integration underscores the need for internal audit functions to adapt and innovate. Supervizor's financial risk discovery and monitoring capabilities offer a powerful solution for addressing these challenges, allowing internal audit teams to enhance their effectiveness and deliver greater value to their organizations.
Want to read this year’s IIA Pulse of Internal Audit report? You can check it out here. Want to learn how Supervizor can help your internal audit team be more productive, efficient and effective? Schedule a demonstration and see how.