Tag: AI

When AI Models Hallunicnate

Internal Audit's Role in Governing AI: PART 2
AI Hallucinations: When Your Models Start Making Things Up

On By Nirpendra Ajmera

No alert fires. No system throws an error. The model confabulates, and the organization relies on it. Most organizations assume they are reviewing AI outputs. In practice, many are reading confident text without asking whether a single sentence is accurate. This is the hallucination problem. For internal audit functions serious Read More

AI Model Drift

Internal Audit's Role in Governing AI: PART 1
Model Drift: When AI Models Lie and What Internal Audit Must Do about It

On By Nirpendra Ajmera

There is a particular kind of risk that keeps model risk officers up at night. It is the risk of a model that keeps running, keeps producing outputs, keeps feeding decisions into the business, while quietly becoming wrong. No alert fires. No dashboard turns red. The model simply drifts, and Read More

COSO Releases New Guidance on Internal Controls for Generative AI

On By IA360 Staff

The Committee of Sponsoring Organizations of the Treadway Commission (COSO), today released a new publication, Achieving Effective Internal Control Over Generative AI (GenAI), offering organizations a practical, COSO‑aligned approach to managing the risks and opportunities introduced by rapidly advancing generative AI technologies. Generative AI is moving into boardrooms and day‑to‑day Read More

Internal Audit's role in finding fraud

Report: Internal Auditors Skeptical of Ability to Respond to AI Fraud

On By IA360 Staff

A new joint report from the Internal Audit Foundation and AuditBoard reveals that, while internal audit leaders widely recognize artificial intelligence–enabled fraud as a growing organizational risk, only four in ten believe their functions are adequately prepared to detect or respond to it. Based on insights from more than 370 Read More

When Data Moves, Risk Moves with It: The Hidden Challenges of Warehousing Data

On By Joseph McCafferty

For many organizations, the move to a modern data architecture brings with it a host of appealing possibilities. It promises centralized data, broken down silos, advanced analytics, power dashboards, forecasting models, and, of course, everyone’s favorite topic: artificial intelligence. The data warehouse or data lake—often cloud-based, scalable, and fast—becomes the Read More

Automating internal controls

Modernizing Compliance: How AI and Automation Are Reshaping Internal Controls

On By Chris Radkowski

In today’s fast-paced business environment, regulatory compliance has become both more critical and more complex. Organizations are expected to maintain rigorous internal controls, ensure transparency, and respond swiftly to audits all while managing sprawling IT ecosystems and evolving risk landscapes. Regulations like the Sarbanes-Oxley Act (SOX) demand companies adhere to Read More

Internal Audit priorities for 2026

New Study Identifies the Top Internal Audit Priorities for 2026

On By Joseph McCafferty

According to a new survey, more than 70 percent of chief audit executives say that building a culture of innovation in their teams and better leveraging data analytics and generative AI to support internal audit, are important or extremely important priorities in 2026. The report, published by research and consulting Read More

The Top Internal Audit Articles of 2025

On By Joseph McCafferty

Last year in this space, we wrote about a profession emerging from a period marked by uncertainty, disruption, and rapid change. As 2024 turned into 2025, internal auditors were still grappling with the aftershocks of the pandemic, accelerating technological change, geopolitical instability, and questions about where—and how—they could add the Read More

Survey: AI Adoption, Limited Resources Top Challenges for Internal Audit

On By IA360 Staff

A new survey of global internal audit leaders finds that the profession is being challenged by three converging forces: persistently tight resources, the rise of AI, and a demand for role redefinition. The report, 2026 Focus on the Future, conducted by AuditBoard, a provider of AI-powered global platforms for connected Read More