Financial Services Internal Audit Roundtable – Leeds 2025

In May 2025, HW Finance and BDO LLP hosted our latest Financial Services Internal Audit Roundtable in Leeds. The event brought together senior professionals from across the financial services sector to exchange insights, experiences, and ideas on the challenges and opportunities shaping the internal audit landscape.

The discussion highlighted several key themes:

Navigating the Regulatory Landscape

Consumer Duty has largely transitioned from project implementation to business-as-usual, though participants noted that customer support remains the least embedded area. Many teams have shifted their focus toward assessing the quality of assurance provided by the first and second lines of defence, rather than conducting granular substantive reviews themselves.

Data interrogation and automation are emerging tools for improving oversight, with several participants exploring call-note scanning to identify missed opportunities in customer interactions. While promising, challenges persist around data accuracy, dialect recognition, and organisational maturity in fully embedding Consumer Duty.

The Corporate Governance Code was also a focus. Early adopters found that bottom-up control identification was too slow, while top-down approaches proved more pragmatic. Many firms are still refining their assurance approach, with some planning integrated audits and “dry runs” by the end of 2025.

On ESG and Sustainability, most participants outsource reporting to third parties, though some are using analytics to validate calculations and strengthen assurance.

Strengthening Methodology and Agility

Flexibility and agility were recurring themes. Teams are increasingly encouraged to move beyond rigid methodologies and adapt their approach based on audit objectives. One organisation shared a collaborative workshop model where known issues are discussed with management upfront, reducing testing time and improving engagement.

Internal audit functions are also reassessing how they communicate recommendations during periods of organisational change. Some are adopting dual ratings to distinguish between control effectiveness and management awareness.

In terms of assurance mapping, reliance on other lines of defence varies according to maturity and methodology. Where confidence exists, internal audit may take a longer review cycle to focus resources strategically. Participants agreed that mapping should remain risk-based and proportionate to avoid unnecessary complexity.

People, Skills, and Strategy

As internal audit’s role evolves, so do its people needs. Many teams are upskilling in change management and technology assurance, helping auditors provide informed challenge in transformation programmes. Others are balancing in-house development with targeted co-sourcing, though success has been mixed due to integration and flexibility challenges.

The conversation highlighted the growing importance of soft skills — such as stakeholder engagement and influencing — alongside technical expertise. Participants agreed that these interpersonal capabilities are critical for maintaining audit’s credibility at senior levels.

The Role of Technology in Audit

Artificial intelligence (AI) continues to generate both curiosity and concern. Participants acknowledged the rapid pace of change and the difficulty of providing assurance over tools that evolve faster than governance frameworks. While AI is used more widely in business than within internal audit functions, teams are beginning to explore applications such as report drafting and data analysis — cautiously and with attention to transparency and data privacy.

The discussion also covered audit systems, where no single platform stood out as optimal. Tools like Riskonnect, AuditBoard, and ServiceNow were cited, though participants noted that most lacked the flexibility or cost efficiency smaller teams require.

Looking Ahead

The Leeds roundtable reinforced that internal audit remains central to strengthening governance, resilience, and trust across financial services.
As regulatory expectations evolve and technology reshapes how assurance is delivered, audit teams are embracing innovation — while maintaining their core commitment to independence, objectivity, and quality.

By fostering agility, collaboration, and continuous learning, internal audit functions are well positioned to help their organisations navigate risk and opportunity in equal measure.