Happy 2026 Everyone!
As we kick off 2026, the buzz in the hallways of every organization is the same: Artificial Intelligence. We are talking about predictive analytics, automated reporting, and real-time monitoring. But as auditors, we need to have a moment of intellectual honesty.
There is no point in talking about Artificial Intelligence if we are still failing at the basics.
Disruptive innovation has indeed changed the way we work, but the pillars of a high-impact internal audit remain unchanged. Whether you are in the public or private sector, the value we provide isn’t just in the tools we use, but in the rigor of our methodology.
The "Shiny Object" Trap
It is easy to get distracted by the latest software, but a sophisticated algorithm applied to a flawed audit plan will only produce "high-tech" errors. High-impact auditing is born long before the first line of code is written; it is born from:
Respect for Standards: Adhering to professional norms is what gives our work legal and institutional weight.
Rigorous Planning: Understanding the object of evaluation, defining clear scopes, and setting realistic timelines.
Quality of Evidence: Collecting evidence that is not just abundant, but sufficient, reliable, relevant, and useful.
Returning to the Foundations
For a truly effective audit, it is essential to "work the basics." This means mastering the core cycle of our profession:
Planning with Purpose: Truly knowing the entity and its risks before defining objectives.
Execution with Precision: Applying the right techniques—be it physical inspection, circularization, or analytical review—and documenting them in flawless working papers.
Communication with Impact: Reporting not just "what happened," but providing a professional opinion that helps management improve through actionable recommendations and consistent follow-up.
Looking Ahead to 2026
My invitation to you this year is to review your foundations. Masterfully executing the basics is, ironically, the greatest competitive advantage an auditor can have in a world obsessed with automation.
AI can process data, but it cannot replace the professional judgment of an auditor who knows how to apply a materiality lens or evaluate the "design and discipline" of an internal control system.
Let’s embrace the future, but let’s keep our feet firmly planted on the bedrock of our profession.
Be happy!
