Complimentary Research / Report
Top Risk Areas Redefining Internal Audit in the Public Sector
5 risks audit leaders can’t ignore
Public sector internal audit teams are operating in an increasingly complex environment. Budget pressure, workforce shortages, aging infrastructure, and growing oversight are forcing audit leaders to rethink priorities and coverage.

This report outlines five critical risk areas reshaping internal audit across the public sector. It explores workforce and succession risks that threaten institutional knowledge, along with funding and compliance challenges tied to grants, appropriations, and increased scrutiny. It also examines risks tied to public safety services, infrastructure and asset management, and the growing exposure created by outdated systems and stalled modernization efforts.

These risks are interconnected and directly impact governance, service delivery, and long-term resilience. Understanding where risk is accelerating helps audit teams better align planning, improve oversight, and deliver more strategic value to leadership.

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