Abbreviations are defined at the end.

‍

Today's Chief Audit Executive

The modern CAE has undergone significant transformation in the past decade. Although the core mandate of the IA function remains largely unchanged - to provide objective assurance on the effectiveness of governance, risk, and controls - IA methodologies and expectations have evolved to face today's demanding, complex, and fast-paced business world. CAEs are charged with expanding the scope of their work, providing critical perspectives to decision makers, and conducting tests at much quicker speeds.  

Below are five critical ways the CAE role has shifted significantly in today's environment, helping reframe IA as a value-creating, forward-looking function aligned with enterprise-wide priorities.

‍

From compliance monitor to strategic partner

Traditionally, IA was viewed with a narrow focus on compliance, financial controls, and tick-the-box exercises. Historical audits of last year's transactions are no longer the focus for IA. Today's CAE is a valued partner to the C-suite and board, helping shape strategic decisions by providing real-time insights into emerging risks and business performance. The CAE is increasingly called upon to assess the effectiveness of strategic initiatives, digital adoption, and cultural alignment—previously deemed outside the audit scope. This trend toward advisory services is expected to continue. The 2025 Pulse of Internal Audit report revealed that CAEs envision the ideal future for IA as 40% advisory services (up from 25%). Many of those in management have already recognized the uniquely positioned viewpoint of IA and leveraged their knowledge and insights. The modern CAE is not viewed as an adversarial compliance monitor but instead has a reserved seat at the table as a strategic partner and advisor to executive management.

‍

Digitally enabled and data-driven

A decade ago, audit planning and execution relied heavily on manual processes. Today’s audit functions increasingly incorporate digital tools, leveraging data analytics, continuous monitoring, RPA, and AI. This shift allows for improved audit coverage, quicker anomaly detection, and more profound insights. Embracing digital technologies supports real-time analysis rather than merely reviewing past data.  

Four in ten CAEs say their functions are using GenAI for their activities, according to the 2025 Pulse of IA report. That number is only expected to grow. Today’s CAE has embraced these tools, enabling IA to be more predictive, proactive, and efficient in supporting agile business operations.

‍

Expansion into risk management

Good corporate governance needs IA and ERM professionals to collaborate. Although the Three Lines Model currently suggests that these functions have clear separation, many organizations are seeing synergies by including risk management activities within the scope of IA. The CAE's broad perspective on the organization and in-depth analysis of risks put them in an ideal position to play a key role in traditional second-line activities.  

Today's CAEs are closely involved with risk management at their organizations. The 2025 Pulse of IA report revealed that almost a third are fully responsible for ERM, and two-thirds are closely collaborating and sharing knowledge with risk management functions. This signals a growing trend and a directive from stakeholders to play a more prevalent role in the second line. The trend is only limited by current IIA guidance (i.e., Three Lines Model) suggesting clear separation. The IIA is currently reassessing this guidance, which may lead to further blending ERM with IA.

‍

Enhanced stakeholder engagement and communication

The modern CAE must possess highly effective communication and relationship-building skills to engage diverse stakeholders. From audit committee members to operational management to new IA staff, the CAE must be able to tailor their message accordingly and inspire action. Compelling storytelling, precise instruction, visual data presentation, and an influential demeanor are baseline requirements of today's CAE. Even the new IA standards require CAEs to develop an approach for the IA function to build relationships and trust with key stakeholders as a minimum requirement. The standards recognize that building trust and credibility across the organization is essential to increase the impact and relevance of IA.

Today's corporate environment demands greater emphasis on transparency and dialogue from IA. While still maintaining its independence, IA is becoming more closely united with stakeholders to advise and work with them to provide not only findings and recommendations but also value-added guidance.

‍

Talent management and leadership evolution

Finally, the modern CAE is not just a subject-matter expert – they are a dynamic leader. Attracting, retaining, and developing a multidisciplinary, tech-savvy, diverse team is now a top priority. The new standards now demand CAEs establish a documented methodology to recruit, develop, and retain resources to support the IA strategy and plan. This is now a minimum requirement. CAEs are answering this call by fostering innovation and learning cultures while upskilling audit professionals in critical thinking, analytics, and business acumen. Many are also implementing rotational programs to bring talent in and out of audit to strengthen collaboration with the business and deepen relationships.

‍

How Socorro Partners enables the modern CAE  

CAEs are embracing this expanded mandate. The successful CAEs are digitally proficient, strategically minded, charismatic leaders and risk management experts. At Socorro Partners, we partner with CAEs and IA not as a back-office function but as a forward-looking driver for organizational performance. We are committed to supporting the continued evolution of the IA function, delivering insight, foresight, and assurance when and where it matters most.

‍

(1) The "Three Lines Model" is a framework developed by the IIA to clarify roles and responsibilities for risk management, control, and governance within organizations. It defines how various parts of an organization interact to manage risk and enable effective governance.

‍

‍