1. Privacy compliance will be a key focus for internal audit

A more comprehensive view of the business: Data analytics can deliver a more detailed look at the internal controls, financial statements, and accounting processes.

Identifying risk earlier in the audit process: Data analytics in the audit process can help detect patterns earlier, allowing for advanced decision-making and more time to implement changes and improvements.

Reduced time and effort: Using data analytics, audit can offer more automated processes, which increases the quality of an audit while shortening the time it takes to complete the assessment.

Lower audit costs: Using data analytics, auditors can perform the same audit quicker and with less resources, leading to shorter, more cost-effective audits.

9. Internal audit skills and expertise will expand.
The drive for innovation within many organizations is forcing the internal audit profession to adapt and evolve at a rapid pace, and many auditors are struggling to keep up with these changes. 
IA’s role in managing organizational risks, its enterprise-wide perspective, and its understanding of various frameworks make it multifaceted, but in today’s business environment, internal auditors need to expand their abilities beyond traditional areas like accounting, compliance, fraud, and finance. To support business change, many companies are already looking for internal auditors with expertise in technical areas like data science, analytics, IT, cybersecurity, and privacy. In addition to hiring professionals with specialized knowledge, companies should also encourage current employees to expand their skills and expertise through training in these areas.
10. Greater investments will need to be made in internal audit. 
According to the IIA’s International Standards for the Professional Practice of Internal Auditing, CAEs are responsible for ensuring that internal audit resources are “appropriate, sufficient, and effectively deployed to achieve the approved plan.” Yet, many CAEs are struggling to meet the board’s expectations for aligning audit activities with strategic business goals while also overseeing fluctuating risks on the current budget allocation.
Risk assessments performed by internal auditors can be resource and labor-intensive. Frequent audit plan revisions over the course of the year are typical in order to manage emerging business risks. And with the cost of a data breach reaching more than 3 times the cost of compliance, not allocating sufficient resources up front can end up costing more in the future. 
Internal audit departments will need a budget increase to adequately address emerging business risks and equip their team with the tools and skills they need to do it efficiently. CAEs should also meet with their boards to provide them with insights into audit needs and present the risks of not adequately investing in IA.
In addition, CAEs and audit directors should also consider the new tools and technologies available to auditors (e.g., RPAs and data analytics) that can help save money that could be applied to other audit areas. In the past, IA spent much of its time and resources on SOX compliance, but many teams are finding that specialty audits and operational audits actually provide more value to executive leadership. This shift requires more budget for these specialty audit areas, requiring CAEs and audit directors to find ways to reduce SOX compliance costs and allocate more budget to higher-value areas.
The digital world is changing, compelling internal audit to adopt new tools and techniques in order to effectively respond to today’s threat landscape. 2020 will be a challenging year for IA as it faces greater compliance challenges, board-level demands, technological change, and increased cyber threats. However, as long as internal audit has the tools and resources it needs to stay current with the latest developments and advancements, this evolution will bring significant value to businesses everywhere.
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