CFO Slice

Internal audit functions are receiving increased investment but continue to face growing cybersecurity threats, AI risks, and technical skills shortages, according to a 2026 survey by Sikich. While 64% of audit leaders reported budget increases and 43% anticipated hiring additional staff, cybersecurity remained the leading emerging risk at 43%, followed by AI and automation at 35%. Technical skills shortages were cited by 64% of respondents, while 82% reported relying on external partners for specialized expertise. AI adoption is accelerating, with 90% of internal audit functions using the technology and 77% incorporating AI assessments into their audit plans. However, gaps remain in areas such as model validation, ethical oversight, and operational effectiveness. Separate research highlighted broader governance and financial challenges. The National Association of Corporate Directors found that 60% of public company directors identified strategy execution as an area requiring stronger oversight. Meanwhile, Dykema reported that tariff uncertainty has overtaken interest rates as the leading concern for M&A activity heading into 2027, while Vena found that 78% of finance teams still encounter errors requiring manual correction during month-end closing.