IIA’s August 2025 "Tone at the Top" report

Tone at the Top is the bimonthly newsletter of the IIA, offering executive management, boards of directors, and audit committees’ concise insights on governance-related topics. The August 2025 edition focuses on corporate culture in the evolving workplace.

The IIA examines how remote and hybrid work arrangements, now available in 40% of jobs, are reshaping corporate culture. While flexibility is a key retention factor, dispersed workforces can erode employee connection, weaken adherence to controls, and increase risks of misconduct.

Employees are placing greater emphasis on work-life balance, alignment with personal values, community, and ongoing skills development overpay. Yet many boards still lack meaningful data to evaluate culture, relying more on impressions than on metrics such as engagement or turnover. Weak cultures can undermine performance and create conditions for fraud and poor decision-making.

The report urges boards to collaborate closely with internal audit to assess and sustain a strong, ethical culture that can withstand remote work challenges. Recommended actions include strengthening control processes, adapting fraud prevention to hybrid contexts, fostering informal digital connections, and maintaining transparency during change. With objective insights, internal audit can help boards align culture with values and strategy, turning it into a competitive advantage.

For the full report, visit the IIA’s official website.