Many organizations are operating in a significantly different manner than they did just a few years ago — focused on engaging with customers in new and different ways, the overall customer experience, strategic and operational resilience, and making better use of data as a competitive differentiator, including through the application of advanced analytics methods, the pursuit and implementation of enabling technologies and more. Innovation and transformation, in fact, are now mainstays in ensuring that businesses stay relevant and competitive over the long term.

According to the results of our latest Next-Generation Internal Audit Survey, two out of three internal audit functions worldwide have completed or are currently undertaking one or more transformation or innovation initiatives. Three out of four CAEs report that these initiatives are happening, and many audit committees are highly engaged in their internal audit function’s innovation and transformation efforts and the deeper insights they enable. But there are still numerous groups that have yet to take any steps toward innovation and transformation.

Among Key Findings: 

• Two out of three internal audit functions are now engaged in or have completed innovation and transformation initiatives, a 6% increase over our 2021 results.
• A majority of internal audit groups in midsize and small organizations have undertaken or are currently undertaking innovation and transformation activities, and most of these groups are at a maturity level where the internal audit function actively encourages innovation and the exploration of new and better ways of delivering.
• Close to half of internal audit teams see a high or medium level of return on investment (ROI) resulting from innovation and transformation initiatives, while a majority of CAEs see these levels of ROI.