Welcome to Deloitte’s Financial Services planning priorities for internal audit for 2025.

As we launch the 10th edition of this publication, we recognise the pivotal role internal audit continues to play. Internal audit is the backbone supporting organisations on their journey forward, acting as a strategic partner and providing insight and innovation for organisations to thrive today and in the future.

The Financial Services landscape in 2024 continues to be driven by increasing regulation, which is impacting many firms’ cost-base due to the need for more robust and well controlled processes. This is compounded by wider economic volatility stemming from ongoing global conflicts, a higher interest rate environment and elections taking place across 70 countries worldwide, including in the UK.

Despite the uncertainty this brings, the role of internal audit as a strategic partner remains unchanged, and many of the key topics for functions to consider today are common with those highlighted in the first edition of this publication in 2014, including model risk management, third party risk management and financial crime. This is perhaps unsurprising given that regulatory focus remain largely the same, centred on prudential stability, good customer outcomes and the reduction and prevention of financial crime.

Whilst similarities remain, internal audit functions must continue to evolve to keep pace with change, not just in terms of what they audit but how they audit. Generative AI (GenAI) in particular presents huge opportunities with a significant increase in the number of use cases emerging across the last 12 months, both in terms of how firms use GenAI, as well as how functions can benefit from it.

For the second year, we have a section dedicated to environmental, social, and governance (ESG). With notable increases in the quantity, quality and breadth of reporting and disclosures due over this and coming years, driven by regulations such as the Corporate Sustainability Reporting Directive (CSRD), ESG continues to be a focus area. Regulation aside, firms should be mindful of the strategic decisions required to effect change as well as report accurately.

The focus on financial crime, conduct risk and digital risk continues. There are also a number of new focus areas to consider including in annual audit plans. An increase in the volume and quantity of financial penalties resulting from failures to correctly identify off-payroll workers has brought employment taxes into focus. Regulators are also focusing on motor finance discretionary commission, which has also been included.

Navigate to the sectors below most relevant to you and your organisation for an overview and suggested actions on a range of priorities for 2025. These are intended to provide a useful reference point from which to drive conversations and ultimately help define internal audit plans.

We hope you find the topics useful and if you would like to discuss anything further, please get in touch.