Auditing Neither digital disruption nor climate change were named among the top five areas where internal audit functions allocate the most time and effort, with both ranked in the lower half of audit priorities. Digital disruption and climate change have emerged as the two fasting-growing risk areas for organizations across industries, according to The IIA’s Internal Audit Foundation’s latest Risk in Focus research. Based on feedback from more than 3,500 internal audit leaders around the world, global risk levels for digital disruption and climate change are projected to increase 20 percentage points and 16 percentage points, respectively, over the next three years – far outpacing other risk areas. Despite the growing intensity of these risks, most audit plans do not currently prioritize them. In fact, neither digital disruption nor climate change were named among the top five areas where internal audit functions allocate the most time and effort, with both ranked in the lower half of audit priorities. Globally, internal audit functions focus predominantly on cybersecurity, governance/corporate reporting, and business continuity, indicating a perceived gap between evolving threats and current areas of attention. “Our latest research tells us cybersecurity, business continuity, and human capital continue to hold the top three spots in risk ratings. However, respondents anticipate significant changes as risks related to climate change and digital disruption accelerate in the coming years,” said Anthony Pugliese, President and CEO of The Institute of Internal Auditors . “To ensure both short-term success and long-term sustainability, organizations and their internal audit functions must adapt risk management practices to keep pace with the changing risk landscape.” Thanks for reading CPA Practice Advisor! Subscribe for free to get personalized daily content, newsletters, continuing education, podcasts, whitepapers and more… Already registered? Login Need more information? Read the FAQ’s Risk in Focus offers a comprehensive […]
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