New Study Finds More Synergy Between Internal Audit and Risk Management

Key Takeaways

• 32% of internal audit leaders have second‑line involvement
• ERM involvement rose from 27% to 34% (2021‑2025)
• 90% report positive outcomes from audit‑risk collaboration
• Main barriers: limited resources, differing objectives, siloed systems
• 80% see no independence threats from shared responsibilities

Summary

A new report by the Internal Audit Foundation, Baker Tilly and Wolters Kluwer TeamMate finds growing synergy between internal audit and risk management. Survey data show 32% of audit leaders now participate in second‑line activities, with ERM involvement rising to 34% since 2021. Around 90% of respondents report tangible benefits such as better risk coverage and reduced duplication, while 80% say collaboration does not threaten audit independence. The study predicts further integration over the next five years.

Pulse Analysis

The latest Collaboration Without Compromise report underscores a shift in the internal audit landscape, where auditors are moving beyond traditional third‑line duties to engage directly with risk management functions. Drawing on the IIA’s Risk Research survey, the study reveals that nearly one‑third of audit leaders now hold second‑line roles, with enterprise risk management participation climbing from 27% to 34% between 2021 and 2025. This convergence reflects the growing complexity of risk portfolios and the demand for integrated oversight across the enterprise.

Benefits of this partnership are compelling: about 90% of respondents cite improved risk coverage, reduced duplication of effort, and stronger alignment with organizational strategy. The data also highlight practical obstacles—resource constraints, divergent objectives, and fragmented IT platforms—that can impede seamless collaboration. Addressing these barriers requires unified governance frameworks and shared technology solutions that enable real‑time information flow between audit and risk teams, ultimately delivering clearer insights to senior leadership and boards.

Looking ahead, the report forecasts that 60% of organizations will deepen audit‑risk integration within five years. To capitalize on this momentum, firms must design collaboration models that safeguard audit independence—such as clear role definitions and disciplined oversight—while leveraging the collective expertise of both lines. Companies that master this balance are poised to enhance operational resilience, drive strategic decision‑making, and reinforce stakeholder confidence in their governance structures.