The Internal Audit Foundation and AuditBoard

Fewer than 40% of internal audit leaders believe their internal audit function is adequately prepared to detect AI-enabled fraud.

58% of internal audit leaders view AI-enabled fraud as a moderate risk.

51% of internal audit functions advise management on AI-related governance or policy updates.

40% of internal audit functions support awareness or training initiatives related to AI-enabled fraud.

38% of internal audit functions test or strengthen fraud prevention and detection.

31% of internal audit functions provide fraud risk assessments to leadership.

88% of internal audit leaders identify AI-powered phishing attacks as a top risk.

45% of internal audit leaders identify deepfake audio or video impersonation as a leading AI-enabled fraud threat.

29% of internal audit leaders are concerned about forged contracts or legal documents created using AI.

55% of internal audit leaders identify insufficient staff with relevant skills or expertise as a primary barrier to improving AI-enabled fraud preparedness.

43% of internal audit leaders cite competing organizational priorities as a barrier to AI-specific risk management efforts.

43% of internal audit leaders cite insufficient time to dedicate to AI-specific risk management efforts.

35% of internal audit functions report extensive use of AI in audit planning and 33% report occasional use.

35% of internal audit functions report extensive use of AI in reporting and 34% report occasional use.

83% of internal audit leaders expect their internal audit function to increase AI usage over the next year.

65% of internal audit leaders identify fabricated invoices or financial documents as a leading AI-enabled fraud threat.

41% of internal audit leaders are concerned about the use of AI to insert malicious code.

46% of internal audit leaders cite limited financial budget as a barrier to AI-specific risk management efforts.

27% of internal audit leaders view AI-enabled fraud as a high risk.

57% of internal audit functions currently assess control weaknesses that enable fraud.

26% of internal audit functions investigate and document AI's role in fraud incidents.

58% of internal audit leaders identify automated social engineering as a leading AI-enabled fraud threat.

28% of internal audit leaders are concerned about fabricated job applications or employee profiles created with AI.

27% of internal audit leaders are concerned about synthetic identity fraud enabled by AI.

57% of internal audit leaders identify a lack of appropriate technology or tools as a primary barrier to improving AI-enabled fraud preparedness.

25% of internal audit functions report extensive use of AI in risk assessment and 39% report occasional use.

19% of internal audit functions report extensive use of AI in fieldwork and 39% report occasional use.