Master your audit playbook: essential steps for internal audit teams

As the year winds down, internal audit leaders and their teams find themselves in a similar place as last year, steering their organization through a maze of last-minute surprises and shifting priorities. Every day feels shorter than the next, trying to make every week, hour, and minute count. The pressure is on thanks to rapid regulatory changes, continuously shifting risks, and technology-driven transformations that evolve overnight. If you want your audit function to do more than just survive the year-end crunch, you will need a solid, flexible game plan. With the right prep, you can help your organization finish strong and set the stage for a resilient 2026.

Stay on top of regulatory and industry shifts that shape audit priorities

Regulatory expectations for internal audit have continued to increase. In early 2025, the Institute of Internal Auditors (The IIA) issued its updated Global Internal Audit Standards, placing greater emphasis on agility, stakeholder engagement, and technology risk. While we’ve seen some deregulation here in the U.S., we’re seeing several new regulations come into effect in the EU, including the Digital Operational Resilience Act (DORA) and the EU Artificial Intelligence ACT, which aim to enhance security, manage risks, and ensure responsible technology adoption. Meanwhile, the PCAOB has raised the bar on fraud risk and IT controls, making evidence collection and skepticism more important than ever. And let’s not forget the new accounting disclosure requirements for AI-powered financial tools and third-party data sources.

Deloitte’s 2025 Internal Audit Outlook highlights the significance of these changes. In fact, more than 80% of audit leaders have shuffled their priorities to tackle AI governance, cybersecurity, and data privacy. Staying updated with these changes is now crucial for ensuring the relevance and reliability of audits.

It's time to shift your risk assessment mindset

In today’s ever-evolving world and the pace of change, a static risk assessment is about as useful as last year’s calendar. Start your fall checklist by giving your annual risk assessment a serious refresh. Start with a shift in your mindset from annual to continuous. AuditBoard’s connected risk platform is focused on the idea of ongoing risk sensing and real-time prioritization. This involves incorporating new data, business intelligence, and stakeholder feedback to identify emerging threats before they escalate beyond control.

AI governance is now front and center on most risk registers. As organizations deploy generative AI and automation, internal audit needs to look beyond controls and think about AI ethics and compliance as well. The IIA’s updates AI framework discusses the auditor’s responsibility to evaluate AI model transparency, data integrity, and bias. Data privacy is also a hot topic, especially with new state and international requirements we are seeing today. Cybersecurity, especially with third-party supply-chain partners, has escalated due to high-profile breaches and ransomware attacks. Your risk assessment should capture all these dimensions, so that your audit plan stays sharp and relevant as the year-end approaches.

Close the year strong by resolving pending audit issues

Let’s be honest, unresolved audit issues are a bit like a loose thread. At first, they seem harmless, but tug on them (or ignore them), and suddenly you’ve got bigger problems on your hands. If these issues linger as the year wraps up, they can quietly chip away at your team’s credibility and leave your organization exposed to risk that could have been avoided.

As year-end approaches, the importance of having a robust process mechanism for tracking and concluding remediation actions escalates. This process should be a shared responsibility with your stakeholders, as the remediation should not fall solely on you; however, you still bear some of the weight if issues are not resolved in a timely manner.

And let’s face it, nobody wants their follow-up emails to end up buried in a stakeholder’s overflowing inbox. That’s where smart technology comes in. Using solutions designed for audit teams can help automate those pesky follow-ups, flag overdue action items, and keep everyone in the loop with real-time updates. If you want to finish the year on a high note, zero in on the high-impact findings and work closely with your stakeholders to clear any roadblocks. Wrapping up outstanding issues not only tightens up your controls but also reinforces your team’s commitment to continuous improvement.

Engage stakeholders about year-end priorities and expectations

To be an effective audit function, you can’t operate in a bubble—remember that bubble’s burst. That's why early and ongoing engagement with executives, board members, and business stakeholders is essential for aligning on year-end objectives. Start by scheduling structured conversations with key stakeholders to surface new concerns, clarify expectations, and validate audit coverage for the remainder of the year.

The 2025 North American Pulse of Internal Audit report points out that CAEs want to build stronger relationships within their organization, as there is a strong correlation between internal audit funding and internal audit alignment with organizational strategy. It’s no surprise, then, that top-performing audit teams consistently have strong relationships with stakeholders and the ability to stay aligned on risks. Just like working out, success doesn’t happen overnight, but you have to put the effort in to achieve the results. So, like having a healthy diet plan to go with your weightlifting, you need to make sure that transparency, responsiveness, and shared accountability are the cornerstones of these relationships. Having regular updates, whether it’s about audit progress, remediation status, or emerging risks, can help manage expectations, keep everyone on pace, and limit the unnecessary last-minute surprises. As the pace of business accelerates, these check-ins become even more important for staying ahead of shifting priorities and supporting strategic decision-making.

Address AI governance, data privacy, cybersecurity, and third-party risks

Let’s not kid ourselves; the rise of AI and digital transformation has completely reshaped the risk landscape. When it comes to AI governance, audit teams need to know exactly what AI and machine learning systems are in play, keep a close eye on how models are built and monitored, and make sure everything lines up with the latest standards. The IIA’s guidance on auditing AI systems recommends robust documentation, independent validation, and ongoing reviews for fairness and explainability.

Data privacy is another moving target. With new state privacy laws in the U.S. and stricter rules for moving data across borders, privacy control testing and incident response reviews are more important than ever. KPMG suggests integrating privacy reviews with cybersecurity audits to focus on data mapping, encryption, and breach notification protocols.

And do not forget about third-party risk. As organizations build out their digital ecosystems, the risks tied to suppliers and partners have only gone up. Audit programs should include assessments of supplier vetting, contract management, and how well vendors can respond to incidents. According to Gartner, the adoption of third-party risk management (TPRM) solutions, like AuditBoard, is being accelerated by supply chain disruption, cyberattacks, increased trade instability, and new regulatory requirements.

Embed continuous improvement into your audit playbook

A robust fall audit playbook isn’t just about planning and execution; it is also a time for reflection and growth. What worked? What didn’t? Where did things get stuck? Jot down the lessons learned and share them across the audit team.

But don’t stop there. Continuous improvements mean investing in the right technology and building up your team’s skills. Automation, analytics, and workflow tools can help streamline audit execution, reduce manual effort, and increase coverage. And with risks like cybersecurity, AI, and data privacy constantly evolving, upskilling is a must.

Setting the stage for a successful 2026 through resilience and adaptability

If you can focus on these essential tasks — risk assessment updates, remediation follow-up, proactive stakeholder engagement, targeted risk reviews, and continuous improvement — you’ll be in great shape for whatever 2026 throws your way. As you chart your course, keep the navigator’s mindset at the forefront by anticipating change, using real-time insights, and building strong partnerships across the organization.

Organizations with adaptive audit teams demonstrate stronger risk awareness, faster response to emerging threats, and greater stakeholder confidence. So, as you navigate the uncertain waters of year-end, remember that preparation isn’t just about survival; it’s about setting the course for success.

About the authors

Scott Madenburg, CIA, CISA, CRMA, is the founder of ARCHybrid, where he serves as a market advisor, consultant, and trainer, guiding organizations and professionals in transforming their audit, risk, and compliance functions to enhance efficiency, strengthen controls, and address emerging threats. Connect with Scott on LinkedIn.