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Internal Audit Teams in 2025: Facing New Challenges

As we move further into 2025, internal audit teams are increasingly compelled to confront emerging challenges that threaten the core of organizational integrity and security. Findings from the latest survey by Jefferson Wells, a renowned professional services firm, reveal a significant shift in focus towards cybersecurity, artificial intelligence (AI), and economic uncertainties. This report underscores the critical role that these factors will play in shaping audit strategies across various industries.

Cybersecurity: The Foremost Concern

For the fifth consecutive year, cybersecurity remains the dominant concern among internal audit leaders. The ever-evolving digital landscape, rife with vulnerabilities, necessitates robust cyber defense mechanisms. Organizations are acknowledging the increasing complexity of threats faced online, propelling the need for enhanced internal audits. Survey data indicate that audit teams are deploying more sophisticated tools and methodologies to combat these complex threats, making cybersecurity training and knowledge imperative across the organization.

The Rise of AI in Internal Audits

Ranking as the second major risk, AI is fundamentally reshaping how internal audits are conducted. With the rise of generative AI, audit strategies are rapidly evolving. The integration of AI tools into audit processes not only enhances efficiency but also introduces new risks that must be managed. Internal audit departments now face the challenge of understanding and adapting to AI technologies, which insist on a new skill set to tackle these advancements effectively.

As organizations employ AI-driven strategies, they must also account for the potential biases and ethical implications of these tools, ensuring that internal audits uphold transparency and integrity.

Economic Uncertainty: A Newly Highlighted Factor

Perhaps most fascinating is the recent emphasis on economic uncertainty as a pivotal risk factor, which was cited by 26% of respondents, a stark rise from nearly zero last year. This shift indicates a growing awareness of the volatile economic climate impacting organizational risk management. Internal audit teams are now required to adapt their strategies to account for economic trends and forecasts, thereby necessitating collaboration with financial experts to ensure thorough evaluations of potential impacts on organizational performance.

Skills Gaps and External Collaboration

Despite the heightened awareness of these risks, many internal audit departments are grappling with a significant skills shortage. More than 85% of audit leaders report relying on external partners to supplement their internal capabilities. This visualizes a pressing need for organizations to bridge gaps in critical areas such as cybersecurity, AI, IT audit, and data analytics.

Tim Lietz, National Practice Leader for Risk & Compliance at Jefferson Wells, emphasizes the urgency of adaptation: "Technology and cybersecurity have become paramount as organizations navigate an increasingly complex risk landscape. Our annual survey underscores the pressing need for Internal Audit functions to adapt to swift advancements in AI, growing global economic uncertainty and their inability to maintain required skillsets on their team to execute their annual internal audit plan."

To effectively impact the internal audit process, departments must seek to enhance their capacities through ongoing training, development, and strategic partnerships with external specialists.

Conclusion

The insights from the Jefferson Wells 2025 Internal Audit Priorities Survey highlight a pivotal moment. Organizations must place heightened focus on cybersecurity, AI, and economic uncertainty, shaping their internal audit strategies for the future. The landscape of risks is shifting, and the ability to effectively manage and mitigate these risks will significantly dictate organizational success in a rapidly changing environment.

For more detailed insights, you can visit Jefferson Wells to access the full report and examine how your organization can better prepare for the future of auditing in this volatile landscape.