Strengthening Internal Audit Programs with Cybersecurity Risk Assessments and Control Framework Alignment

Cybersecurity risks evolve rapidly, and internal auditors are increasingly expected to provide assurance that their organizations are adequately prepared. To meet this challenge, auditors must take a structured approach, beginning with a cybersecurity risk assessment. This process helps determine where the organization is most vulnerable and what controls are in place—or lacking—to mitigate those threats.

One of the most effective ways to structure a cybersecurity audit is to align with established frameworks. The NIST Cybersecurity Framework, ISO 27001, and COBIT provide proven guidance. Internal auditors should map the organization’s cybersecurity policies, procedures, and controls to these frameworks, identifying any gaps that may exist. Doing so not only enhances audit quality but also increases credibility when reporting findings to boards and regulators.

Risk assessments should consider both internal and external threats. Phishing, ransomware, insider misuse, and third-party risk all require attention. Internal auditors should leverage interviews, document reviews, vulnerability scan reports, and incident logs to identify emerging risks. Additionally, risk prioritization is essential—auditors must distinguish between low-probability events with minimal impact and high-probability, high-impact risks that could cripple operations.

An important area for auditors is control testing. It is not enough to verify that policies exist; auditors must confirm that controls are operating effectively. This may involve sampling access controls, reviewing encryption practices, or evaluating security awareness training participation. Independent validation ensures that management is not merely relying on “paper controls.”

Communication with management and the audit committee is critical. Audit findings must be presented in business terms, emphasizing risk to operations, reputation, and compliance. Boards are often not technical experts, so auditors should translate technical findings into strategic insights.

Finally, auditors should ensure follow-up processes are in place. Cybersecurity controls often require continuous monitoring and timely remediation of deficiencies. Internal audit should track management’s corrective actions, ensuring that risks are addressed promptly.

By adopting a framework-based, risk-driven approach, internal auditors can provide meaningful assurance that the organization is managing cybersecurity effectively. This approach not only fulfills audit responsibilities but also strengthens the organization’s resilience against today’s complex threat landscape.

Read Story

Shirley Cruz

2 min read

Strengthening Internal Audit Programs with Cybersecurity Risk Assessments and Control Framework Alignment

Strengthening Internal Audit Programs with Cybersecurity Risk Assessments and Control Framework Alignment

Cybersecurity risks evolve rapidly, and internal auditors are increasingly expected to provide assurance that their organizations are adequately prepared. To meet this challenge, auditors must take a structured approach, beginning with a cybersecurity risk assessment. This process helps determine where the organization is most vulnerable and what controls are in place—or lacking—to mitigate those threats.

One of the most effective ways to structure a cybersecurity audit is to align with established frameworks. The NIST Cybersecurity Framework, ISO 27001, and COBIT provide proven guidance. Internal auditors should map the organization’s cybersecurity policies, procedures, and controls to these frameworks, identifying any gaps that may exist. Doing so not only enhances audit quality but also increases credibility when reporting findings to boards and regulators.

Risk assessments should consider both internal and external threats. Phishing, ransomware, insider misuse, and third-party risk all require attention. Internal auditors should leverage interviews, document reviews, vulnerability scan reports, and incident logs to identify emerging risks. Additionally, risk prioritization is essential—auditors must distinguish between low-probability events with minimal impact and high-probability, high-impact risks that could cripple operations.

An important area for auditors is control testing. It is not enough to verify that policies exist; auditors must confirm that controls are operating effectively. This may involve sampling access controls, reviewing encryption practices, or evaluating security awareness training participation. Independent validation ensures that management is not merely relying on “paper controls.”

Communication with management and the audit committee is critical. Audit findings must be presented in business terms, emphasizing risk to operations, reputation, and compliance. Boards are often not technical experts, so auditors should translate technical findings into strategic insights.

Finally, auditors should ensure follow-up processes are in place. Cybersecurity controls often require continuous monitoring and timely remediation of deficiencies. Internal audit should track management’s corrective actions, ensuring that risks are addressed promptly.

By adopting a framework-based, risk-driven approach, internal auditors can provide meaningful assurance that the organization is managing cybersecurity effectively. This approach not only fulfills audit responsibilities but also strengthens the organization’s resilience against today’s complex threat landscape.

Read Story

Shirley Cruz

2 min read

AML & KYC

Strengthening Internal Audit’s Role in Detecting Money Laundering Risks Across Operations

Internal audit plays a crucial role in supporting organizations as they navigate the growing complexity of money laundering risks. While regulatory compliance is often the starting point, auditors are expected to apply a risk-based mindset that goes further, ensuring management has robust controls and continuous monitoring.

The first step for internal audit is understanding the business model and identifying where money laundering risks could manifest. This requires mapping out processes such as customer onboarding, payments, trade finance, and correspondent banking relationships. Auditors should assess whether risk assessments are performed regularly and whether they incorporate emerging typologies, including virtual assets, shell company structures, and geopolitical risk exposures.

Internal auditors must also examine how effectively the first line of defense manages risks. For example, are customer due diligence procedures consistently applied? Is there evidence that enhanced due diligence is performed when higher-risk clients are onboarded? Does transaction monitoring generate alerts that are both meaningful and manageable? These questions help auditors evaluate whether AML frameworks are functioning as intended.

Another key area is governance and culture. Strong AML compliance depends on clear accountability, senior management oversight, and adequate resourcing. Internal auditors should assess whether compliance functions have sufficient authority, whether reporting lines are effective, and whether issues raised in prior examinations are being resolved promptly.

Technology is another area requiring attention. Many firms are implementing advanced monitoring tools, machine learning algorithms, and automated screening systems. While these can enhance detection, they also introduce risks such as data integrity, model bias, and system dependency. Auditors should review implementation controls, validation processes, and contingency planning for system failures.

Finally, auditors should ensure that findings are reported in a way that enables action. Recommendations must be practical, prioritized, and linked to organizational objectives. Clear communication with the audit committee and regulators, where applicable, reinforces the organization’s commitment to AML compliance.

By applying a proactive, risk-based approach, internal auditors provide more than assurance — they act as catalysts for stronger defenses against financial crime.

Feb 27, 2025

2 min read

Author: David Martin

Cybersecurity

Strengthening Internal Audit Programs with Cybersecurity Risk Assessments and Control Framework Alignment

Cybersecurity risks evolve rapidly, and internal auditors are increasingly expected to provide assurance that their organizations are adequately prepared. To meet this challenge, auditors must take a structured approach, beginning with a cybersecurity risk assessment. This process helps determine where the organization is most vulnerable and what controls are in place—or lacking—to mitigate those threats.

One of the most effective ways to structure a cybersecurity audit is to align with established frameworks. The NIST Cybersecurity Framework, ISO 27001, and COBIT provide proven guidance. Internal auditors should map the organization’s cybersecurity policies, procedures, and controls to these frameworks, identifying any gaps that may exist. Doing so not only enhances audit quality but also increases credibility when reporting findings to boards and regulators.

Risk assessments should consider both internal and external threats. Phishing, ransomware, insider misuse, and third-party risk all require attention. Internal auditors should leverage interviews, document reviews, vulnerability scan reports, and incident logs to identify emerging risks. Additionally, risk prioritization is essential—auditors must distinguish between low-probability events with minimal impact and high-probability, high-impact risks that could cripple operations.

An important area for auditors is control testing. It is not enough to verify that policies exist; auditors must confirm that controls are operating effectively. This may involve sampling access controls, reviewing encryption practices, or evaluating security awareness training participation. Independent validation ensures that management is not merely relying on “paper controls.”

Communication with management and the audit committee is critical. Audit findings must be presented in business terms, emphasizing risk to operations, reputation, and compliance. Boards are often not technical experts, so auditors should translate technical findings into strategic insights.

Finally, auditors should ensure follow-up processes are in place. Cybersecurity controls often require continuous monitoring and timely remediation of deficiencies. Internal audit should track management’s corrective actions, ensuring that risks are addressed promptly.

By adopting a framework-based, risk-driven approach, internal auditors can provide meaningful assurance that the organization is managing cybersecurity effectively. This approach not only fulfills audit responsibilities but also strengthens the organization’s resilience against today’s complex threat landscape.

Feb 27, 2025

2 min read

Author: Shirley Cruz

Regulatory Change

Preparing Internal Audit Functions for Rapid Regulatory Shifts in 2025

The pace of regulatory change has never been more dynamic. From sustainability reporting requirements to evolving data protection laws, organizations are increasingly faced with the challenge of maintaining compliance while continuing to deliver value. Internal audit functions are uniquely positioned to serve as strategic advisors during these shifts, helping organizations anticipate change rather than simply react.

To prepare for rapid regulatory shifts, internal audit teams must first establish a clear understanding of the regulatory landscape. This means monitoring not only finalized rules but also proposed legislation and industry consultations. By developing strong external intelligence capabilities, audit teams can help organizations foresee potential obligations before they are formally enacted.

Second, internal audit should strengthen its alignment with enterprise risk management (ERM). Regulatory change is not merely a compliance issue; it can impact strategy, operations, and reputation. Audit teams must evaluate how regulatory risks intersect with business objectives, ensuring that risk registers and assurance plans reflect these realities.

Third, flexibility must be built into audit planning. Traditional annual audit plans may be too rigid to accommodate regulatory surprises. Progressive teams are adopting rolling audit plans, updated quarterly or even monthly, to respond quickly to new developments. Scenario planning is another useful tool, allowing audit leaders to outline how audits might pivot if a major regulatory change occurs.

Technology also plays a vital role. Advanced data analytics, continuous monitoring tools, and automated controls testing can provide real-time insights into compliance readiness. Internal auditors should advocate for and leverage these tools, ensuring that organizations can demonstrate compliance efficiently and accurately.

Finally, communication and collaboration remain critical. Internal audit must work closely with compliance, legal, operations, and the board to ensure a coordinated approach. Regular briefings with senior leadership can help position internal audit as a trusted advisor, offering assurance that the organization is prepared for regulatory disruptions.

In summary, regulatory shifts are inevitable and often unpredictable. Internal audit teams that cultivate foresight, flexibility, and collaboration will not only help their organizations remain compliant but also reinforce their value as strategic partners in governance.

Feb 27, 2025

2 min read

Author: Helen Morales

AML & KYC

Strengthening Internal Audit’s Role in Detecting Money Laundering Risks Across Operations

Internal audit plays a crucial role in supporting organizations as they navigate the growing complexity of money laundering risks. While regulatory compliance is often the starting point, auditors are expected to apply a risk-based mindset that goes further, ensuring management has robust controls and continuous monitoring.

The first step for internal audit is understanding the business model and identifying where money laundering risks could manifest. This requires mapping out processes such as customer onboarding, payments, trade finance, and correspondent banking relationships. Auditors should assess whether risk assessments are performed regularly and whether they incorporate emerging typologies, including virtual assets, shell company structures, and geopolitical risk exposures.

Internal auditors must also examine how effectively the first line of defense manages risks. For example, are customer due diligence procedures consistently applied? Is there evidence that enhanced due diligence is performed when higher-risk clients are onboarded? Does transaction monitoring generate alerts that are both meaningful and manageable? These questions help auditors evaluate whether AML frameworks are functioning as intended.

Another key area is governance and culture. Strong AML compliance depends on clear accountability, senior management oversight, and adequate resourcing. Internal auditors should assess whether compliance functions have sufficient authority, whether reporting lines are effective, and whether issues raised in prior examinations are being resolved promptly.

Technology is another area requiring attention. Many firms are implementing advanced monitoring tools, machine learning algorithms, and automated screening systems. While these can enhance detection, they also introduce risks such as data integrity, model bias, and system dependency. Auditors should review implementation controls, validation processes, and contingency planning for system failures.

Finally, auditors should ensure that findings are reported in a way that enables action. Recommendations must be practical, prioritized, and linked to organizational objectives. Clear communication with the audit committee and regulators, where applicable, reinforces the organization’s commitment to AML compliance.

By applying a proactive, risk-based approach, internal auditors provide more than assurance — they act as catalysts for stronger defenses against financial crime.

Cybersecurity

Strengthening Internal Audit Programs with Cybersecurity Risk Assessments and Control Framework Alignment

Cybersecurity risks evolve rapidly, and internal auditors are increasingly expected to provide assurance that their organizations are adequately prepared. To meet this challenge, auditors must take a structured approach, beginning with a cybersecurity risk assessment. This process helps determine where the organization is most vulnerable and what controls are in place—or lacking—to mitigate those threats.

One of the most effective ways to structure a cybersecurity audit is to align with established frameworks. The NIST Cybersecurity Framework, ISO 27001, and COBIT provide proven guidance. Internal auditors should map the organization’s cybersecurity policies, procedures, and controls to these frameworks, identifying any gaps that may exist. Doing so not only enhances audit quality but also increases credibility when reporting findings to boards and regulators.

Risk assessments should consider both internal and external threats. Phishing, ransomware, insider misuse, and third-party risk all require attention. Internal auditors should leverage interviews, document reviews, vulnerability scan reports, and incident logs to identify emerging risks. Additionally, risk prioritization is essential—auditors must distinguish between low-probability events with minimal impact and high-probability, high-impact risks that could cripple operations.

An important area for auditors is control testing. It is not enough to verify that policies exist; auditors must confirm that controls are operating effectively. This may involve sampling access controls, reviewing encryption practices, or evaluating security awareness training participation. Independent validation ensures that management is not merely relying on “paper controls.”

Communication with management and the audit committee is critical. Audit findings must be presented in business terms, emphasizing risk to operations, reputation, and compliance. Boards are often not technical experts, so auditors should translate technical findings into strategic insights.

Finally, auditors should ensure follow-up processes are in place. Cybersecurity controls often require continuous monitoring and timely remediation of deficiencies. Internal audit should track management’s corrective actions, ensuring that risks are addressed promptly.

By adopting a framework-based, risk-driven approach, internal auditors can provide meaningful assurance that the organization is managing cybersecurity effectively. This approach not only fulfills audit responsibilities but also strengthens the organization’s resilience against today’s complex threat landscape.

Regulatory Change

Preparing Internal Audit Functions for Rapid Regulatory Shifts in 2025

The pace of regulatory change has never been more dynamic. From sustainability reporting requirements to evolving data protection laws, organizations are increasingly faced with the challenge of maintaining compliance while continuing to deliver value. Internal audit functions are uniquely positioned to serve as strategic advisors during these shifts, helping organizations anticipate change rather than simply react.

To prepare for rapid regulatory shifts, internal audit teams must first establish a clear understanding of the regulatory landscape. This means monitoring not only finalized rules but also proposed legislation and industry consultations. By developing strong external intelligence capabilities, audit teams can help organizations foresee potential obligations before they are formally enacted.

Second, internal audit should strengthen its alignment with enterprise risk management (ERM). Regulatory change is not merely a compliance issue; it can impact strategy, operations, and reputation. Audit teams must evaluate how regulatory risks intersect with business objectives, ensuring that risk registers and assurance plans reflect these realities.

Third, flexibility must be built into audit planning. Traditional annual audit plans may be too rigid to accommodate regulatory surprises. Progressive teams are adopting rolling audit plans, updated quarterly or even monthly, to respond quickly to new developments. Scenario planning is another useful tool, allowing audit leaders to outline how audits might pivot if a major regulatory change occurs.

Technology also plays a vital role. Advanced data analytics, continuous monitoring tools, and automated controls testing can provide real-time insights into compliance readiness. Internal auditors should advocate for and leverage these tools, ensuring that organizations can demonstrate compliance efficiently and accurately.

Finally, communication and collaboration remain critical. Internal audit must work closely with compliance, legal, operations, and the board to ensure a coordinated approach. Regular briefings with senior leadership can help position internal audit as a trusted advisor, offering assurance that the organization is prepared for regulatory disruptions.

In summary, regulatory shifts are inevitable and often unpredictable. Internal audit teams that cultivate foresight, flexibility, and collaboration will not only help their organizations remain compliant but also reinforce their value as strategic partners in governance.

Payments

Strengthening Payment Controls Through Robust Internal Audit Preparation Practices

Payments are the lifeblood of any organization, and their integrity directly influences reputation, regulatory standing, and financial performance. Preparing for an internal audit in this area goes beyond compliance—it is about embedding confidence in every transaction. A proactive approach to internal audit readiness ensures management can address risks before they escalate into costly issues.

The first step in preparation is comprehensive mapping of the payment process. Organizations should document end-to-end workflows, from payment initiation to reconciliation, noting control points and responsibilities. This helps identify gaps, duplicate controls, or areas vulnerable to manipulation. A clear process map provides auditors with visibility, reducing time spent uncovering basic information.

Next, review of policy alignment is essential. Payment policies should align with regulatory standards, industry practices, and internal risk appetite. Internal audit teams will look for evidence that policies are not only defined but actively enforced. For instance, segregation of duties in payment approval should be demonstrable, not theoretical.

Data accuracy plays a crucial role in audits. Therefore, testing data integrity before auditors arrive minimizes unpleasant surprises. Reconciliations between accounts payable, treasury systems, and bank statements should be complete and up-to-date. Any exceptions must be explained and supported with evidence. This ensures auditors can verify reliability quickly.

Fraud detection and monitoring mechanisms should also be evaluated. Payment fraud remains a persistent risk, whether through internal collusion or external cyberattacks. Preparing a record of how anomalies are detected, escalated, and resolved demonstrates a culture of vigilance.

Finally, effective audit preparation involves communication readiness. Staff responsible for payments should be trained to respond confidently to auditor inquiries. Centralized documentation of policies, procedures, and evidence helps avoid delays and ensures consistency in responses.

By preparing thoroughly for payment-related audits, organizations not only satisfy compliance demands but also strengthen trust among stakeholders. When payments are seen as secure and well-controlled, confidence in the broader business follows.

AML & KYC

Strengthening Internal Audit’s Role in Detecting Money Laundering Risks Across Operations

Internal audit plays a crucial role in supporting organizations as they navigate the growing complexity of money laundering risks. While regulatory compliance is often the starting point, auditors are expected to apply a risk-based mindset that goes further, ensuring management has robust controls and continuous monitoring.

The first step for internal audit is understanding the business model and identifying where money laundering risks could manifest. This requires mapping out processes such as customer onboarding, payments, trade finance, and correspondent banking relationships. Auditors should assess whether risk assessments are performed regularly and whether they incorporate emerging typologies, including virtual assets, shell company structures, and geopolitical risk exposures.

Internal auditors must also examine how effectively the first line of defense manages risks. For example, are customer due diligence procedures consistently applied? Is there evidence that enhanced due diligence is performed when higher-risk clients are onboarded? Does transaction monitoring generate alerts that are both meaningful and manageable? These questions help auditors evaluate whether AML frameworks are functioning as intended.

Another key area is governance and culture. Strong AML compliance depends on clear accountability, senior management oversight, and adequate resourcing. Internal auditors should assess whether compliance functions have sufficient authority, whether reporting lines are effective, and whether issues raised in prior examinations are being resolved promptly.

Technology is another area requiring attention. Many firms are implementing advanced monitoring tools, machine learning algorithms, and automated screening systems. While these can enhance detection, they also introduce risks such as data integrity, model bias, and system dependency. Auditors should review implementation controls, validation processes, and contingency planning for system failures.

Finally, auditors should ensure that findings are reported in a way that enables action. Recommendations must be practical, prioritized, and linked to organizational objectives. Clear communication with the audit committee and regulators, where applicable, reinforces the organization’s commitment to AML compliance.

By applying a proactive, risk-based approach, internal auditors provide more than assurance — they act as catalysts for stronger defenses against financial crime.

Cybersecurity

Strengthening Internal Audit Programs with Cybersecurity Risk Assessments and Control Framework Alignment

Cybersecurity risks evolve rapidly, and internal auditors are increasingly expected to provide assurance that their organizations are adequately prepared. To meet this challenge, auditors must take a structured approach, beginning with a cybersecurity risk assessment. This process helps determine where the organization is most vulnerable and what controls are in place—or lacking—to mitigate those threats.

One of the most effective ways to structure a cybersecurity audit is to align with established frameworks. The NIST Cybersecurity Framework, ISO 27001, and COBIT provide proven guidance. Internal auditors should map the organization’s cybersecurity policies, procedures, and controls to these frameworks, identifying any gaps that may exist. Doing so not only enhances audit quality but also increases credibility when reporting findings to boards and regulators.

Risk assessments should consider both internal and external threats. Phishing, ransomware, insider misuse, and third-party risk all require attention. Internal auditors should leverage interviews, document reviews, vulnerability scan reports, and incident logs to identify emerging risks. Additionally, risk prioritization is essential—auditors must distinguish between low-probability events with minimal impact and high-probability, high-impact risks that could cripple operations.

An important area for auditors is control testing. It is not enough to verify that policies exist; auditors must confirm that controls are operating effectively. This may involve sampling access controls, reviewing encryption practices, or evaluating security awareness training participation. Independent validation ensures that management is not merely relying on “paper controls.”

Communication with management and the audit committee is critical. Audit findings must be presented in business terms, emphasizing risk to operations, reputation, and compliance. Boards are often not technical experts, so auditors should translate technical findings into strategic insights.

Finally, auditors should ensure follow-up processes are in place. Cybersecurity controls often require continuous monitoring and timely remediation of deficiencies. Internal audit should track management’s corrective actions, ensuring that risks are addressed promptly.

By adopting a framework-based, risk-driven approach, internal auditors can provide meaningful assurance that the organization is managing cybersecurity effectively. This approach not only fulfills audit responsibilities but also strengthens the organization’s resilience against today’s complex threat landscape.

Regulatory Change

Preparing Internal Audit Functions for Rapid Regulatory Shifts in 2025

The pace of regulatory change has never been more dynamic. From sustainability reporting requirements to evolving data protection laws, organizations are increasingly faced with the challenge of maintaining compliance while continuing to deliver value. Internal audit functions are uniquely positioned to serve as strategic advisors during these shifts, helping organizations anticipate change rather than simply react.

To prepare for rapid regulatory shifts, internal audit teams must first establish a clear understanding of the regulatory landscape. This means monitoring not only finalized rules but also proposed legislation and industry consultations. By developing strong external intelligence capabilities, audit teams can help organizations foresee potential obligations before they are formally enacted.

Second, internal audit should strengthen its alignment with enterprise risk management (ERM). Regulatory change is not merely a compliance issue; it can impact strategy, operations, and reputation. Audit teams must evaluate how regulatory risks intersect with business objectives, ensuring that risk registers and assurance plans reflect these realities.

Third, flexibility must be built into audit planning. Traditional annual audit plans may be too rigid to accommodate regulatory surprises. Progressive teams are adopting rolling audit plans, updated quarterly or even monthly, to respond quickly to new developments. Scenario planning is another useful tool, allowing audit leaders to outline how audits might pivot if a major regulatory change occurs.

Technology also plays a vital role. Advanced data analytics, continuous monitoring tools, and automated controls testing can provide real-time insights into compliance readiness. Internal auditors should advocate for and leverage these tools, ensuring that organizations can demonstrate compliance efficiently and accurately.

Finally, communication and collaboration remain critical. Internal audit must work closely with compliance, legal, operations, and the board to ensure a coordinated approach. Regular briefings with senior leadership can help position internal audit as a trusted advisor, offering assurance that the organization is prepared for regulatory disruptions.

In summary, regulatory shifts are inevitable and often unpredictable. Internal audit teams that cultivate foresight, flexibility, and collaboration will not only help their organizations remain compliant but also reinforce their value as strategic partners in governance.

Payments

Strengthening Payment Controls Through Robust Internal Audit Preparation Practices

Payments are the lifeblood of any organization, and their integrity directly influences reputation, regulatory standing, and financial performance. Preparing for an internal audit in this area goes beyond compliance—it is about embedding confidence in every transaction. A proactive approach to internal audit readiness ensures management can address risks before they escalate into costly issues.

The first step in preparation is comprehensive mapping of the payment process. Organizations should document end-to-end workflows, from payment initiation to reconciliation, noting control points and responsibilities. This helps identify gaps, duplicate controls, or areas vulnerable to manipulation. A clear process map provides auditors with visibility, reducing time spent uncovering basic information.

Next, review of policy alignment is essential. Payment policies should align with regulatory standards, industry practices, and internal risk appetite. Internal audit teams will look for evidence that policies are not only defined but actively enforced. For instance, segregation of duties in payment approval should be demonstrable, not theoretical.

Data accuracy plays a crucial role in audits. Therefore, testing data integrity before auditors arrive minimizes unpleasant surprises. Reconciliations between accounts payable, treasury systems, and bank statements should be complete and up-to-date. Any exceptions must be explained and supported with evidence. This ensures auditors can verify reliability quickly.

Fraud detection and monitoring mechanisms should also be evaluated. Payment fraud remains a persistent risk, whether through internal collusion or external cyberattacks. Preparing a record of how anomalies are detected, escalated, and resolved demonstrates a culture of vigilance.

Finally, effective audit preparation involves communication readiness. Staff responsible for payments should be trained to respond confidently to auditor inquiries. Centralized documentation of policies, procedures, and evidence helps avoid delays and ensures consistency in responses.

By preparing thoroughly for payment-related audits, organizations not only satisfy compliance demands but also strengthen trust among stakeholders. When payments are seen as secure and well-controlled, confidence in the broader business follows.

Artificial Intelligence

Preparing Internal Audit Teams for the Era of Artificial Intelligence

Artificial intelligence (AI) is no longer a futuristic concept—it is embedded in business operations across industries. From financial modeling to human resources analytics, AI has the potential to transform how companies work, and with that transformation comes new expectations for internal auditors. Preparing an internal audit team for the age of AI requires a proactive and structured approach.

The first step is education. Internal auditors need a foundational understanding of what AI is and how it functions within business processes. While not every auditor must become a data scientist, a baseline knowledge of machine learning, natural language processing, and automation ensures they can assess risks and evaluate controls intelligently. Training programs, workshops, and industry certifications are useful in closing knowledge gaps.

Second, audit leaders must enhance their risk assessment frameworks to account for AI-specific risks. AI introduces issues of bias, data privacy, algorithm transparency, and model governance. Traditional audit checklists often fail to capture these nuances. For example, auditors must be prepared to test whether machine learning models were trained on biased datasets or whether algorithms are producing consistent, explainable outputs.

Third, auditors must evaluate governance structures. Who owns AI oversight within the organization? Are there clear policies on AI model approval, monitoring, and retirement? Internal audit should recommend that management establish formal governance frameworks, similar to those used for financial controls.

Fourth, technology must be incorporated into audit procedures themselves. Internal audit functions can use AI-driven analytics to improve sample testing, anomaly detection, and fraud risk analysis. This “audit of AI using AI” approach demonstrates both credibility and efficiency.

Finally, preparation involves cultural change. Audit teams should position themselves as partners to management, providing insights on responsible AI adoption rather than acting solely as compliance watchdogs. This requires open communication and a forward-looking mindset.

In conclusion, internal audit teams that prepare for AI now will be better positioned to add value to their organizations. By building knowledge, updating frameworks, strengthening governance, using advanced tools, and adopting a collaborative role, auditors can provide assurance that AI is implemented responsibly and effectively.

Data Protection

Strengthening Data Protection Through Robust Internal Audit Preparation and Practices

In today’s regulatory and cyber-risk environment, organizations cannot afford to treat data protection as a secondary concern. Internal audits play a pivotal role in verifying compliance with relevant data protection laws, regulations, and internal policies. However, the effectiveness of these audits depends heavily on the preparation undertaken by internal teams before the audit begins.

A first step in preparation involves reviewing the scope of data protection requirements applicable to the organization. This includes local privacy legislation such as GDPR, CCPA, or regional data sovereignty rules, along with industry-specific frameworks like HIPAA or PCI DSS. By aligning the internal audit’s scope with these standards, organizations ensure that assessments are comprehensive and address both regulatory and operational risks.

Data mapping is another essential component of audit readiness. Many organizations underestimate the volume and variety of data they collect, store, and process. Preparing a clear inventory of personal and sensitive data—identifying where it resides, how it flows, and who has access—gives auditors a precise view of risk areas. This mapping exercise not only benefits audits but also enhances incident response readiness.

Another critical preparation area is access management. Internal auditors will assess whether permissions and roles are appropriately restricted, monitored, and documented. Preparing for this includes reviewing role-based access controls, evaluating privileged account management, and ensuring robust logging and monitoring practices are in place.

Training and awareness also feature prominently in audit preparation. Organizations that embed privacy and security into their culture tend to demonstrate compliance more consistently. Prior to an internal audit, reinforcing awareness campaigns, conducting refresher training sessions, and documenting attendance records can illustrate the organization’s proactive stance on data protection.

Documentation often determines whether an internal audit is successful. Policies, procedures, and evidence of their implementation must be readily accessible. Organizations should maintain updated data protection policies, incident response plans, and risk assessments to demonstrate not only compliance but continuous improvement.

Finally, conducting a pre-audit self-assessment can significantly improve outcomes. By simulating audit conditions, testing processes, and reviewing evidence, internal teams can identify shortcomings early and address them before official evaluations.

In conclusion, data protection audits are most effective when organizations prepare systematically and strategically. Through scope alignment, data mapping, access reviews, awareness programs, thorough documentation, and self-assessments, companies can strengthen their defenses while building trust with stakeholders and regulators alike.

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Globally Read.

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Governance

Governance

Strengthening Governance Structures Through Proactive Internal Audit Engagement

Strengthening Governance Structures Through Proactive Internal Audit Engagement

Preparing the Board Audit Committee for Effective Oversight and Challenge

Preparing the Board Audit Committee for Effective Oversight and Challenge

Embedding Risk Awareness in Governance Through Internal Audit Reviews

Embedding Risk Awareness in Governance Through Internal Audit Reviews

Leveraging Internal Audit to Enhance Governance Over Organizational Culture

Leveraging Internal Audit to Enhance Governance Over Organizational Culture

Internal Audit Readiness: Preparing for Governance Reviews and Board Expectations

Internal Audit Readiness: Preparing for Governance Reviews and Board Expectations

Governance

Strengthening Governance Structures Through Proactive Internal Audit Engagement

Feb 19, 2025

1 min read

Preparing the Board Audit Committee for Effective Oversight and Challenge

Feb 16, 2025

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Embedding Risk Awareness in Governance Through Internal Audit Reviews

Feb 14, 2025

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Leveraging Internal Audit to Enhance Governance Over Organizational Culture

Feb 13, 2025

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Cybersecurity

Cybersecurity

Cybersecurity

Preparing Internal Audit Teams for Cybersecurity Audits through Training and Skills Development

Preparing Internal Audit Teams for Cybersecurity Audits through Training and Skills Development

Preparing Internal Audit Teams for Cybersecurity Audits through Training and Skills Development

As cyber threats intensify, internal audit functions are increasingly tasked with evaluating cybersecurity risks and controls. However, many auditors lack formal training in technical areas, leading to gaps in audit quality. To address this, organizations must invest in building cybersecurity competence across audit teams.

The first step is assessing the current skill level of internal auditors. Many auditors are skilled in risk management, compliance, and process evaluation but lack deep technical knowledge of networks, systems, and security protocols. Identifying these gaps allows targeted training programs to be developed.

Training can take multiple forms. Short-term workshops and webinars introduce auditors to key cybersecurity concepts such as firewalls, encryption, and identity access management. Longer-term solutions include professional certifications such as CISA, CISSP, and Certified in Cybersecurity (CC). These credentials not only provide valuable knowledge but also enhance the credibility of internal audit findings.

Collaboration with IT and security teams is another effective approach. Joint exercises, knowledge-sharing sessions, and cross-departmental projects expose auditors to real-world cybersecurity practices. This collaboration also builds stronger relationships, reducing friction when audits take place.

Practical, hands-on training should be emphasized. For instance, auditors can benefit from simulated phishing exercises or participation in vulnerability assessment reviews. Experiencing how attacks occur provides deeper insight than theoretical knowledge alone. Similarly, reviewing incident response plans and participating in tabletop exercises can help auditors understand the organizational impact of cyber incidents.

Soft skills are equally important. Auditors must be able to communicate cybersecurity findings to non-technical stakeholders, particularly executives and audit committees. This requires not just technical accuracy but the ability to translate complex concepts into business implications.

Finally, internal audit leaders must support continuous professional development. Cybersecurity is not static; attackers constantly evolve their methods. Without ongoing training, audit teams risk becoming outdated. Annual training budgets, access to cybersecurity conferences, and subscriptions to threat intelligence services can ensure auditors remain current.

By prioritizing skills development, internal audit functions can provide higher-quality assurance and contribute to organizational resilience. In a digital-first business environment, cybersecurity-literate auditors are not a luxury—they are a necessity.

As cyber threats intensify, internal audit functions are increasingly tasked with evaluating cybersecurity risks and controls. However, many auditors lack formal training in technical areas, leading to gaps in audit quality. To address this, organizations must invest in building cybersecurity competence across audit teams.

The first step is assessing the current skill level of internal auditors. Many auditors are skilled in risk management, compliance, and process evaluation but lack deep technical knowledge of networks, systems, and security protocols. Identifying these gaps allows targeted training programs to be developed.

Training can take multiple forms. Short-term workshops and webinars introduce auditors to key cybersecurity concepts such as firewalls, encryption, and identity access management. Longer-term solutions include professional certifications such as CISA, CISSP, and Certified in Cybersecurity (CC). These credentials not only provide valuable knowledge but also enhance the credibility of internal audit findings.

Collaboration with IT and security teams is another effective approach. Joint exercises, knowledge-sharing sessions, and cross-departmental projects expose auditors to real-world cybersecurity practices. This collaboration also builds stronger relationships, reducing friction when audits take place.

Practical, hands-on training should be emphasized. For instance, auditors can benefit from simulated phishing exercises or participation in vulnerability assessment reviews. Experiencing how attacks occur provides deeper insight than theoretical knowledge alone. Similarly, reviewing incident response plans and participating in tabletop exercises can help auditors understand the organizational impact of cyber incidents.

Soft skills are equally important. Auditors must be able to communicate cybersecurity findings to non-technical stakeholders, particularly executives and audit committees. This requires not just technical accuracy but the ability to translate complex concepts into business implications.

Finally, internal audit leaders must support continuous professional development. Cybersecurity is not static; attackers constantly evolve their methods. Without ongoing training, audit teams risk becoming outdated. Annual training budgets, access to cybersecurity conferences, and subscriptions to threat intelligence services can ensure auditors remain current.

By prioritizing skills development, internal audit functions can provide higher-quality assurance and contribute to organizational resilience. In a digital-first business environment, cybersecurity-literate auditors are not a luxury—they are a necessity.

As cyber threats intensify, internal audit functions are increasingly tasked with evaluating cybersecurity risks and controls. However, many auditors lack formal training in technical areas, leading to gaps in audit quality. To address this, organizations must invest in building cybersecurity competence across audit teams.

The first step is assessing the current skill level of internal auditors. Many auditors are skilled in risk management, compliance, and process evaluation but lack deep technical knowledge of networks, systems, and security protocols. Identifying these gaps allows targeted training programs to be developed.

Training can take multiple forms. Short-term workshops and webinars introduce auditors to key cybersecurity concepts such as firewalls, encryption, and identity access management. Longer-term solutions include professional certifications such as CISA, CISSP, and Certified in Cybersecurity (CC). These credentials not only provide valuable knowledge but also enhance the credibility of internal audit findings.

Collaboration with IT and security teams is another effective approach. Joint exercises, knowledge-sharing sessions, and cross-departmental projects expose auditors to real-world cybersecurity practices. This collaboration also builds stronger relationships, reducing friction when audits take place.

Practical, hands-on training should be emphasized. For instance, auditors can benefit from simulated phishing exercises or participation in vulnerability assessment reviews. Experiencing how attacks occur provides deeper insight than theoretical knowledge alone. Similarly, reviewing incident response plans and participating in tabletop exercises can help auditors understand the organizational impact of cyber incidents.

Soft skills are equally important. Auditors must be able to communicate cybersecurity findings to non-technical stakeholders, particularly executives and audit committees. This requires not just technical accuracy but the ability to translate complex concepts into business implications.

Finally, internal audit leaders must support continuous professional development. Cybersecurity is not static; attackers constantly evolve their methods. Without ongoing training, audit teams risk becoming outdated. Annual training budgets, access to cybersecurity conferences, and subscriptions to threat intelligence services can ensure auditors remain current.

By prioritizing skills development, internal audit functions can provide higher-quality assurance and contribute to organizational resilience. In a digital-first business environment, cybersecurity-literate auditors are not a luxury—they are a necessity.

Feb 20, 2025

2 min read

Author: Shirley Cruz

Author: Shirley Cruz

Author: Shirley Cruz

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