Internal audit teams in North America are facing tighter budgets and smaller teams, according to the 2026 North American Pulse of Internal Audit Report from the Internal Audit Foundation. A survey of 373 senior audit leaders found that audit departments are feeling more pressure as their responsibilities increase while resources decrease. 

The report found that internal audit funding fell in 2025, reversing some of the gains from previous years. Accounting Today highlighted that more audit leaders reported budget cuts, and fewer saw increases, which points to broader cost pressures. Fewer respondents said their audit teams had enough funding, suggesting that limited resources may be reducing the amount of audit work they can do. The report notes, “internal audit functions across North America enter 2026 under increasing resource pressure, with more organizations reporting declines in both budget and staff in 2025 compared with the prior year.”

Staffing changes have followed the budget cuts, with some organizations reducing their internal audit teams even as their responsibilities grow. Audit leaders are now handling more than just traditional audits, including fraud investigations, managing ethics or whistleblower programs, and overseeing enterprise risk management.

The findings also highlight the importance of internal audit teams aligning with their organization’s strategy. Teams that closely match enterprise priorities are more likely to receive enough funding and maintain steady staffing levels.