Nexia Singapore, a leading provider of audit, assurance, tax, and advisory services, will be releasing the findings of its survey on the impact of artificial intelligence (AI) on corporate governance, risk management and internal audit. The survey, conducted in February 2025 in collaboration with The Institute of Internal Auditors Singapore and 11 other supporting organisations, gathered responses from 190 professionals across various industries in Singapore and a few from the region.
The survey revealed a significant gap between AI adoption and understanding its impact on decision-making and risk assessment. While many respondents acknowledged the positive impact of AI on governance and risk management, there was also a degree of uncertainty about its implications.
“AI is rapidly transforming the business landscape and it’s crucial for organisations to understand its impact on all levels.” said Mr. Paul Tan, Chairman of Nexia Singapore. “This survey highlights the need for greater clarity and understanding of AI’s role in corporate governance and risk management.”.
The survey also found that internal audit functions are lagging in adapting to AI. A large portion of respondents indicated that their internal audit teams have not yet started auditing AI systems or processes, and many have not received AI-specific training.
“Internal audit needs to adapt quickly to the challenges of auditing AI systems.” said Mr. Edwin Hooi, Head of Nexia Singapore’s GRAi (Governance, Risk and AI) practice. “This includes acquiring new skills and knowledge, as well as developing new audit methodologies.”.
Other key findings of the survey include:
Stakeholder expectations regarding AI assurance are evolving, but there is considerable uncertainty about these expectations.
The traditional risk-based audit approach is still considered effective by many, but there is a growing recognition of the need to adapt this approach for an AI-driven environment.
AI tools are being used for risk assessment and audit planning, but their adoption is still relatively low.
The survey findings provide valuable insights into the current state of AI adoption and its impact on corporate governance, risk management and internal audit. Nexia Singapore believes that these findings will be helpful for organisations as they navigate the challenges and opportunities of AI.
For more information, please contact:
Edwin Hooi
Director, Head of GRAi
Nexia Singapore
E: edwin.hooi@nexiasingapore.com
T: 6950 4377
