Disruptive Changes and Emerging Risks within Internal Auditing Profession: A Review from South Africa

The pervasive advances in information technology, coupled with environmental changes and the gruelling real-time stakeholder demands consistently challenge the auditing profession. Modernday complex interconnected business networks, are progressively making the true nature of emerging risks difficult to assess. Some of these emerging risks are like ticking time-bombs that can erupt rapidly and dramatically without cautionary. Emerging risks are concealed risk exposures with potential to trigger unanticipated and disconcerting shocks. As a result, organisations are more frequently turning to their internal auditing departments to help with the task of identifying emerging risks and guiding risk management protocols consistent with the dynamic risk landscape. The auditing professionals are increasingly being judged and evaluated for their ability to adapt and be forward-looking in matters of risk assessment. For that reason, internal auditors are forced to adopt laterally think and adapt to emerging risks. Several examples in recent years have shown the immense responsibility that internal auditing professionals must carry, and the present paper is to be seen as a contribution to understanding the implications of the changing risk landscape on the internal auditing profession. The qualitative thematic analysis identifies the overwhelming need for agility within the internal auditing profession, that emerging risks are engraining business operations, and remain significant determinants of governance and accountability. The results of the study have several policy implications and ignites pertinent future research propositions.