New Research Highlights Increased Synergy between Internal Audit and Risk Management
Press Release | Internal Audit Foundation | March 17, 2026
LAKE MARY, Fla. (March 17, 2026) – A new report issued jointly by The Internal Audit Foundation, Baker Tilly and Wolters Kluwer TeamMate examines the evolution of risk management activities and their impact on roles and boundaries, highlighting the importance of strategic collaboration without sacrificing independence. Drawing on The IIA’s Risk Research survey insights, the report identifies opportunities to enhance efficiency and strengthen enterprise-wide governance.
“As risk grows more complex and expectations for strong governance rise, effective coordination between internal audit and risk management is increasingly essential,” said Anthony Pugliese, President and CEO of The IIA. “The IIA’s Three Lines Model has served as a longstanding framework for that integration, reinforcing that independence does not imply isolation. As internal audit responsibilities expand and lines between functions evolve, the model guides organizations in strengthening collaboration while maintaining the safeguards necessary to preserve objectivity.”
The Expanding Activities of Internal Audit
According to survey responses, roughly 32% of internal audit leaders have at least some second-line involvement, with the most common areas including enterprise risk management (ERM) (57%), internal control (43%) and compliance (39%).
This 32% is consistent with insights from The IIA’s North American Pulse of Internal Audit research, which show that the percentage of CAEs responsible for ERM in addition to internal audit increased from 27% to 34% between 2021 and 2025, reflecting steady year-over-year growth.
Looking ahead, synergy between risk management and internal audit is expected to continue to grow, with 60% of respondents from the Risk Research survey reporting that they expect further integration in the next five years.
The Benefits of Strategic Collaboration
Research consistently shows that intentional collaboration between second and third-line functions can deliver measurable benefits. In fact, roughly 90% of survey respondents reported positive outcomes from coordination. The top benefits of that coordination include improved risk coverage (28%), reduced duplication of effort (26%), stronger organizational alignment (20%), enhanced board communication (11%) and more efficient reporting (6%).
The data suggest that barriers to collaboration are driven less by intent and more by structure. Limited resources or competing priorities were cited most frequently (40%), followed by differences in objectives or perspectives (34%), the absence of unified platforms including separate IT systems (32%) and siloed processes (31%).
“When collaboration is thoughtfully designed, it can significantly improve the quality and consistency of information reaching leadership and the board,” said Jim Pelletier, Lead Product Manager, Wolters Kluwer TeamMate. “This research highlights a path forward, where organizations strengthen coordination across the lines while reinforcing the structures and safeguards that protect internal audit’s independence and credibility.”
Ensuring Independence
Broadly speaking, the Risk Research findings suggest that concerns about threats to internal audit independence remain theoretical. In fact, 80% of respondents report no shared responsibilities between the second and third lines that pose a risk to internal audit independence.
However, as functional boundaries continue to evolve in an increasingly complex risk landscape, ensuring that collaboration is deliberate and well-structured and that independence safeguards are implemented is essential.
“This research highlights that collaboration and independence are not competing priorities when they are intentionally designed into the operating model. With clear role definitions, disciplined governance, and transparency around decision-making, internal audit can engage closely with second-line functions while maintaining the objectivity that underpins stakeholder trust and audit committee confidence,” said John Romano, Principal, Internal Audit & ERM Service Leader, Baker Tilly. “Done well, this model strengthens risk oversight across the organization and allows internal audit to deliver deeper insight to management and the board.”
Modern risk management is progressing towards a more integrated, enterprise-wide approach that reduces duplication, increases operational efficiency and more effectively integrates risk considerations into organizational strategy. In this shifting landscape, intentional, structured collaboration between internal audit and risk management is no longer optional, but foundational to effective governance and organizational resilience.
Download the full report.
The IIA, Baker Tilly, and Wolters Kluwer TeamMate will host a webinar examining the evolving implementation of the Three Lines Model on May 19, 2026. Those interested are encouraged to register.
About The Institute of Internal Auditors and the Internal Audit Foundation
The Institute of Internal Auditors (The IIA) is an international professional association that serves more than 265,000 global members and has awarded more than 200,000 Certified Internal Auditor® (CIA®) certifications worldwide. Established in 1941, The IIA is recognized throughout the world as the internal audit profession’s leader in standards, certifications, education, research, and technical guidance. For more information, visit theiia.org.
The Internal Audit Foundation is the preeminent global resource, in strategic partnership with The IIA, dedicated to elevating and empowering the internal audit profession by developing cutting-edge research and programs. For 50 years, the Foundation has helped current and future internal auditors stay relevant by building and enhancing their skills and knowledge, ensuring organizations are equipped to create, protect, and sustain long-term value. Visit theiia.org/Foundation.
About Baker Tilly (bakertilly.com)
Baker Tilly is a leading advisory, tax and assurance firm, providing clients with a genuine coast-to-coast and global advantage in major regions of the U.S. and in many of the world’s leading financial centers – New York, London, San Francisco, Seattle, Los Angeles, Chicago and Boston. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP (Baker Tilly) provide professional services through an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations and professional standards. Baker Tilly US, LLP is a licensed independent CPA firm that provides attest services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and business advisory services to their clients. Baker Tilly Advisory Group, LP and its subsidiary entities are not licensed CPA firms.
Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are independent members of Baker Tilly International, a worldwide network of independent accounting and business advisory firms in 147 territories, with 50,000 professionals and a combined worldwide revenue of $6.8 billion. Visit bakertilly.com or join the conversation on LinkedIn, Facebook and Instagram.
About Wolters Kluwer TeamMate
Wolters Kluwer TeamMate delivers purpose‑built audit and GRC expert solutions that empower audit, risk, compliance, and controls teams to operate with confidence and precision. With flexible, configurable solutions, TeamMate adapts to how teams work today while scaling seamlessly to support their evolving needs of tomorrow. TeamMate's global reach with strong local expertise supports organizations wherever they are. By unifying data across assurance, risk, and compliance disciplines, TeamMate provides leadership with a connected, real‑time view of risk, strengthening decision‑making and driving more resilient enterprise performance. For more information, visit www.teammatesolutions.com, follow us on LinkedIn, Facebook, and YouTube.
Wolters Kluwer (EURONEXT: WKL) is a global leader in information solutions, software and services for professionals in healthcare; tax and accounting; financial and corporate compliance; legal and regulatory; corporate performance and ESG. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with technology and services. Wolters Kluwer reported 2025 annual revenues of €6.1 billion. The group serves customers in over 180 countries, maintains operations in over 40 countries, and employs approximately 21,100 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX, Euro Stoxx 50, and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt (ADR) program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY). For more information, visit www.wolterskluwer.com, follow us on LinkedIn, Facebook, YouTube and Instagram.