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Internal Audit Teams in Higher Education: Emerging Signals of Change

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dprymak
August 30, 2025

Internal Audit Teams in Higher Education: Emerging Signals of Change

In recent years, internal audit teams within higher education institutions have experienced significant transformations driven by evolving expectations and external pressures. These changes reflect a broader shift in the role of internal auditors from traditional compliance enforcers to strategic business partners. This analysis explores key signals of change as observed in the internal audit landscape, particularly in higher education, based on recent evidence.

1. Evolving Perceptions of Internal Audit

The interaction between internal audit teams and other stakeholders in higher education, such as C-suite executives and senior researchers, has been marked by a growing recognition of the value auditors bring. However, some stakeholders still perceive internal audits as bureaucratic and potentially disruptive. This dichotomy highlights a critical shift in how internal audits are viewed, emphasizing the need for auditors to position themselves as facilitators of improvement rather than mere compliance monitors.

2. Introduction of Advanced Technologies

As noted in the IIA Conference trends, the integration of artificial intelligence (AI) within internal audit processes has become increasingly prevalent. AI tools are expected to enhance audit planning, testing, and reporting. This technological evolution presents auditors with both opportunities for efficiency and challenges related to cybersecurity. The emergence of AI necessitates that internal auditors adapt their skill sets to understand and manage these new risks effectively.

“AI is expected to affect accountants and auditors significantly.” – Anthony Pugliese, IIA President

3. Technology-Driven Success

Internal audit leaders have identified technology adoption as a decisive factor in organizational success. The fear of technology among leadership can hinder progress and innovation. Internal auditors are increasingly tasked with understanding not only the technical tools available but also the emotional and psychological barriers that may prevent their effective utilization. This requires auditors to engage in continuous learning and relationship-building to promote a culture of innovation.

“If left unmonitored, emotional responses can turn into barriers to innovation and progress.” – Rohit Talwar, CEO of Fast Future

4. Recognition of Company Culture and Values

The importance of organizational culture has gained prominence, with stakeholders now recognizing that a strong culture correlates with improved performance. Internal auditors are now expected to assess and report on the alignment between a university's stated values and its operational realities. This evolution necessitates that auditors adopt a more nuanced approach to evaluating risk, considering ethical standards and cultural alignment as material factors influencing performance.

5. Increased Need for Preparedness Amid Disruption

Disruption has become a norm, and internal audit teams are essential in preparing organizations for unforeseen challenges. By developing dynamic and adaptable plans, internal auditors can enhance an institution's resilience against crises. This requires a shift toward establishing a "living plan" that is regularly tested and updated, enabling rapid responses to changing conditions.

“Have a living plan—not one that exists on paper, but one that actually works in practice.” – Kees Roks, Chief Audit Officer, Novartis

6. Enhanced Focus on ESG Metrics

Environmental, Social, and Governance (ESG) considerations are increasingly critical in organizational strategies. Investors and stakeholders demand rigorous governance over ESG practices, prompting internal auditors to become involved early in the process to ensure that accurate and reliable data is collected and reported. This proactive engagement positions auditors as key players in shaping sustainable practices within higher education institutions.

Conclusion

In conclusion, the internal audit function in higher education is undergoing significant transformation, characterized by evolving perceptions, technological advancements, and a heightened focus on culture and sustainability. As internal auditors navigate these changes, their roles are increasingly recognized as vital to the strategic direction and health of their organizations. Embracing these changes will enable internal audit teams to contribute meaningfully to their institutions, driving both compliance and continuous improvement.

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