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

The discussion highlighted several key themes:

Navigating the Regulatory Landscape

Operational resilience remains firmly on the agenda even after the March 2025 deadline. Recent cyberattacks and infrastructure disruptions have underlined the importance of continuous testing and robust third-party oversight.

Other regulatory developments were also front of mind, including:

• The evolving Corporate Governance Code and the need to define and monitor “material controls.”
• Ongoing obligations under the Consumer Duty and Consumer Credit Act, particularly around post-debt sale oversight.
• Anticipation of the Supreme Court ruling on commission disclosures, with potential impacts extending beyond motor finance.
• The Prudential Regulatory Authority’s 2025/26 Business Plan, which signals ongoing consultation but little immediate deregulation.
• Concerns over the Public Authorities (Fraud, Error and Recoveries) Bill, especially its implications for fraud monitoring and data ethics.

Evolving Role of Technology in Audit

Technology was a recurring theme. Audit teams are increasingly collaborating with IT functions to provide more effective assurance over critical applications. Continuous monitoring is gaining traction as a way to provide ongoing oversight, though technical expertise remains in short supply.

Artificial intelligence (AI) is seen as both an opportunity and a risk. While AI tools are already being used for analytics and reporting, participants emphasised the need for robust governance to ensure accuracy and accountability.

Strengthening Methodology and Culture

Discussions also explored the way internal audit approaches its own methodology:

• Risk culture assessment varies widely across firms, but is becoming a more visible component of assurance activity.
• Reporting requirements need to be streamlined, with participants agreeing that current demands are unsustainable.
• The future skills of auditors are changing, with many firms investing in IT training for business auditors and considering new team profiles to meet tomorrow’s assurance needs.

Looking Ahead

The roundtable confirmed that internal audit continues to play a critical role in helping financial services firms navigate regulatory expectations, strengthen resilience, and adapt to technological change. By embracing innovation while maintaining robust oversight, audit teams are well positioned to support both governance and growth across the sector.