As the business environment continues to evolve in 2024, internal auditors are at the forefront of navigating through a labyrinth of challenges and opportunities presented by globalisation, climate change, geopolitical tensions, and rapid digital transformation. The KPMG Internal Audit Topics 2024 report shines a light on the pressing issues and emerging trends that are redefining the scope and approach of risk-oriented audit planning.
Drawing from a wealth of data sources including past audits, risk management, compliance, accounting, and business processes, the report underscores the necessity for internal auditors to remain agile and adaptable. The ability to recalibrate audit plans in response to shifting dynamics is not just a strategic advantage but a fundamental requirement in today’s volatile, uncertain, complex, and ambiguous (VUCA) world.
The report identifies several hot topics that are currently shaping the internal audit landscape. These range from the intricacies of navigating compliance with the Whistleblower Protection Act and ensuring the adequacy of corporate governance systems, to the strategic imperative of managing sanctions and embargoes. The significance of an independent risk early warning system and the due diligence required in stakeholder relationships further highlight the comprehensive nature of modern internal audit challenges.
On the operational front, the report stresses the importance of resilience and business continuity, emphasizing the need for businesses to conduct thorough impact analyses and develop robust continuity strategies. The external risks that come with global interconnectedness require a proactive approach to identification, assessment, management, and monitoring. Additionally, the transformations occurring within finance and HR departments, driven by new technologies, digitalisation, and a focus on diversity and talent retention, underscore the broadening scope of internal audit.
In the realm of IT and digitalisation, cybersecurity and data protection remain paramount, with the added complexity of governing emerging technologies such as artificial intelligence. The report also touches on the challenges and compliance requirements associated with hybrid working models, further illustrating the multifaceted nature of internal audit’s responsibilities.
Environmental, social, and governance (ESG) factors receive significant attention, reflecting their growing importance in corporate strategy and risk management. From integrating ESG risks into the overall risk management framework to ensuring readiness for legal requirements related to sustainability and social responsibility, internal auditors play a crucial role in guiding their organizations through the complexities of ESG compliance and reporting.
In summary, the KPMG Internal Audit Topics 2024 report offers a comprehensive overview of the evolving landscape internal auditors must navigate. It serves as a crucial resource for auditors seeking to enhance their strategies, ensuring their organizations not only survive but thrive in the face of new risks and opportunities. For a deeper dive into these insights, the full report can be accessed through KPMG’s publication, „Internal Audit in the Spotlight.“