This final thesis aims to point out the necessity of transforming the internal audit’s methodological approach in the contemporary business conditions, which can be characterized as dynamic, unpredictable and unstable. Internal audit functions must accept radical changes in the operating activities in the shortest possible time, implement and settle them in their practice, culture, as well as way of thinking, so that they can continue to fulfill their advisory role in companies. As a consequence of companies doing business and internal audit functions operating in such surroundings, a model or concept named the ‘Next Generation Internal Audit’ was developed. The model’s purpose is to give relevant guidelines, principles and practices in order to facilitate the transformation process that internal audit functions are going through. The methodological aspect of this model contains four elements, Continuous Monitoring, High-Impact Reporting, Dynamic Risk Assessment and Agile Audit Approach, which forms the central part or the backbone of the research in this final thesis. Namely, agile methodology enables performing increasingly complex and demanding internal audit engagements while reducing costs, shortening results delivery time and increasing the quality of internal auditors’ work, what is extremely important in this chaotic times. The researches conducted by the company Protiviti from 2018 to 2022 show how much progress towards the adoption of the ‘Next-Generation Internal Audit’ methodology has been achieved. After analyzing and synthesizing the research results, it can be concluded that the transformation of the internal audit’s traditional methodological approach towards the ‘Next Generation Internal Audit’ methodology on the global level is still in its early stage, therefore, significant progress is expected in the years to come. A positive indicator is that there is a certain percentage of companies whose internal audit functions have already adopted or have plans for adopting agile internal audit. Although the transformation is not an easy process, it is important that internal auditors accept the fact that changes are necessary and be focused on adopting them, even by taking small steps.