Internal audit leans more on external partners and AI

October 20, 2026

Internal audit teams are relying more on outside auditing firms and partners, according to a new report.

The report, released Tuesday by Sikich, a Top 50 Firm based in Chicago, polled a group of 222 U.S. internal audit leaders, and found while 64% of the respondents reported higher budgets this year and 43% expect to increase headcount next year, 82% are of them are using external partners to complement their internal capabilities with specialized cyber, AI and data expertise.

Cybersecurity and AI continue to lead the risk agenda for internal auditors, with 77% of the respondents including AI assessments in their audit plans, and 90% using AI within the audit function. As AI adoption accelerates, organizations are increasing their focus on AI governance, data privacy, inventories of AI use and cybersecurity. However, the survey found many organizations haven't yet expanded assurance beyond governance and security controls to evaluate whether AI is producing reliable and appropriate outcomes.

"The fact that 82% of internal audit leaders are using external partners to supplement internal capabilities signals a fundamental shift in how these functions operate. Internal audit leaders have stopped treating external partners as overflow capacity and started treating them as a permanent part of the operating model," said Jamey Loupe, a principal and risk advisory practice leader at Sikich, in a statement. "Organizations can't hire fast enough to close the cyber, AI and data skills gap, so leaders need to be deliberate about what should be built internally and where to bring in specialists. Being intentional about that balance will allow internal audit functions to strengthen their capabilities while remaining flexible as needs evolve."

[Accounting Today]