Internal Auditors Must Reskill As AI, Data Analytics Transform Profession
KUALA LUMPUR, Sept 21 (Bernama) -- Internal auditors need to continuously reskill in artificial intelligence (AI), data analytics and emerging technologies as the profession evolves from a traditional compliance-focused function into a more strategic advisory role.
Institute of Internal Auditors Malaysia (IIAM) vice-president Amran Mohamad said the growing complexity of risks -- including cybersecurity, environmental, social and governance (ESG) issues, digitalisation and AI --meant that internal auditors can no longer rely solely on conventional audit approaches.
"Auditors need to know how to use data analytics, understand AI and have more foresight, as their role is evolving towards providing more advisory support to businesses," he told reporters on the sidelines of The Institute of Internal Auditors Malaysia National Conference (IIAMNC) 2026 here today.
Amran, who is also CIMB’s Group Corporate Assurance Division group chief internal auditor said internal auditors need to work closely with businesses to understand their strategies and identify potential risks before they materialised, rather than merely checking whether existing procedures had been followed.
He said this represents a shift from the traditional perception of internal auditors as ‘policemen’ -- whose main role was to identify mistakes -- to becoming strategic advisers to management and boards.
“We are more like a strategic advisor,” he said, adding that internal auditors needed to understand the risks faced by companies and assess whether adequate processes and controls were in place to mitigate them.
Amran said investment in technology and human capital was important to enable internal audit departments to perform their roles more effectively.
He said data analytics, for example, allows auditors to analyse significantly larger volumes of transactions instead of relying heavily on traditional sampling methods.
At the same time, he said AI could help auditors analyse procedures and large volumes of documentation more efficiently, although human oversight remained important to ensure the technology produced appropriate outcomes.
Amran said the increasing adoption of AI does not mean that internal audit jobs would disappear, but would instead change the nature of the profession and the skills required.
“We still need internal audit because that’s very important from a governance perspective,” he said.
He said future auditors would need stronger capabilities in data analytics, AI and business strategy, while spending more time engaging with management to understand future risks and provide advisory support.
Meanwhile, Amran said external auditors can complement internal auditors as both professions increasingly expand their focus beyond traditional financial checks.
He said external auditors are also facing similar technological changes, with greater use of data analytics and the adoption of AI in auditing techniques.
“For example, previously, external auditors focused on the financial statements. But because a lot of other processes affect the financial statements, their role is expanding as well,” he said, noting that a cybersecurity incident could have implications for a company’s financial statements, integrity and wider operations.
He said the changing nature of internal and external auditing highlighted the need for auditors to understand the wider business ecosystem and emerging risks, while technology could be used to improve the efficiency and quality of audit work.
-- BERNAMA