For decades, internal audit has been seen primarily as a watchdog—rooted in compliance, regulatory assurance, and the mechanics of financial controls. But that image is rapidly fading. Today, leading organizations are recasting internal audit as a proactive, value-driving function aligned with enterprise strategy, resilience, and growth.
This evolution is not just cosmetic. It represents a fundamental shift in how internal auditors operate, think, and collaborate—with executives, risk managers, and the board. And it demands a rethink of the tools and technologies that support the function, including governance, risk, and compliance (GRC) platforms such as Empowered, which are enabling a more strategic, data-driven future.
From Reactive Compliance to Proactive Insight
Historically, internal audit operated on a cyclical model. Auditors conducted routine reviews, identified gaps, and reported on compliance violations—often in hindsight. While this model supported accountability, it fell short in the face of real-time risk and business agility.
In contrast, the internal audit functions that are gaining traction in boardrooms today are those that provide foresight. They leverage analytics to anticipate emerging risks, offer continuous assurance, and evaluate how internal controls impact strategic objectives.
Consider the case of a global manufacturing firm navigating supply chain disruptions. Instead of waiting for a post-mortem, its internal audit team—partnering with operations and IT—monitored third-party risk exposure in real time. By analyzing supplier data through a GRC platform equipped with embedded analytics, they flagged vulnerabilities in key regions, enabling procurement to act before shipments were delayed. That’s not just risk mitigation; it’s value creation.
Embedding Strategic Influence
What distinguishes high-performing internal audit teams is their ability to connect risk intelligence with strategic decision-making. This requires a mindset shift from policing to partnering.
McKinsey & Company refers to this as “influencing from within.” Rather than solely reporting on risk, internal auditors serve as advisors, shaping strategic initiatives from the ground up. This influence is amplified when audit has access to the same insights and real-time data as business units—enabling them to participate meaningfully in business transformation, M&A activity, or digital innovation.
Platforms like Empowered are central to this transition. With capabilities such as automated workflows, risk modeling, and integrated issue management, Empowered allows audit functions to operate with the same speed and agility as the rest of the business. For example, AI-powered dashboards can flag anomalies in operational data, triggering audit engagements aligned with enterprise risk priorities, not just a pre-set calendar.
The Rise of Continuous Assurance
Static, point-in-time audits no longer suffice in a world where risks evolve rapidly—from cybersecurity threats to ESG performance gaps. Leading audit teams are shifting toward continuous assurance models, where control effectiveness is evaluated in real-time, and insights are shared continuously with stakeholders.
Take a financial services company that implemented continuous monitoring for high-risk business units. Using a GRC platform with API integrations, they connected audit workflows with operational systems—flagging unusual transactions, control overrides, or out-of-policy behaviors as they occurred. This not only accelerated remediation but also built trust with regulators, who viewed the company as ahead of the curve.
Empowered’s control testing engine is designed for precisely this purpose. It enables audit teams to automatically schedule, conduct, and document control tests across business units—reducing manual effort while increasing coverage and responsiveness.
Reimagining Skills and Structure
The transformation of internal audit is not purely technological. It also requires reimagining the function’s structure, skillsets, and relationship with leadership.
Future-ready audit teams include data scientists, process engineers, and risk strategists—not just CPAs. They embed themselves in cross-functional teams, understand business drivers, and use storytelling to translate risk into action.
This is particularly evident in how audit interacts with ESG initiatives. As sustainability disclosures become more complex and regulated, audit functions are playing a central role in validating ESG data and ensuring the integrity of reporting. But doing so requires fluency in non-financial metrics and the ability to interpret data through a stakeholder lens.
By using a platform like Empowered, which centralizes ESG controls, risk libraries, and stakeholder mappings, internal audit teams can confidently assess ESG-related risks and communicate their implications in ways that resonate with the C-suite.
Charting the Path Forward
The internal audit function is at an inflection point. Organizations that invest in modernizing the function—technologically and culturally—stand to gain a competitive edge. Those that don’t may find their audit capabilities increasingly misaligned with the complexity of modern enterprise risk.
To move forward, audit leaders should consider the following:
- Reevaluate the audit charter to reflect a broader mandate that includes strategic advising and real-time risk insight.
- Invest in digital capabilities that enable automation, analytics, and continuous monitoring.
- Embed audit into business transformation projects to provide risk-informed guidance from the start.
- Expand the skillset of auditors to include data literacy, technology fluency, and communication acumen.
- Adopt integrated platforms like Empowered that unify risk, compliance, and audit activities into a single source of truth.
The internal audit function of the future isn’t just about finding problems—it’s about shaping the future of the organization. It’s time to move from assurance to influence.
