Internal auditors confront fraud risks

May 11, 2026

Internal auditors are facing a heightened risk of fraud at organizations as schemes change and internal controls weaken over time, according to a new report.

The report, released Monday by the Center for Audit Quality, the Institute of Internal Auditors and the Anti-Fraud Collaboration (which includes the CAQ and the IIA, as well as Financial Executives International, the Association of Certified Fraud Examiners and the National Association of Corporate Directors), discusses how internal auditors fit into the current fraud risk environment.

It focuses on how internal audit is part of a broader fraud deterrence effort that includes management, boards, external auditors and other components; and how internal auditors assess fraud risk, challenge assumptions, and apply professional skepticism to surface vulnerabilities that can otherwise go unnoticed.

Internal auditors need to continually sharpen their skills through training, data analysis and experience, according to the report, which uses real-world examples to show where internal auditors can most effectively limit opportunities for fraud, and where their role has boundaries.

"Fraud risk remains a persistent and evolving threat to organizations of all sizes and industries, driven by geopolitical uncertainty, increasing complexity in business models, rapid technological change, and heightened economic and regulatory pressures," said the report. "As trusted providers of independent and objective assurance, internal auditors play a critical role in helping organizations assess, manage, and respond to fraud risk."

[Accounting Today]