Internal audit is outcome-driven: advising on emerging risk, promoting behavioural change and informing strategic decisions. Yet it’s commonplace for performance measures to focus on task.
The 2020s are predicted to be roaring just like the 1920s, and, with that, the time has come for performance measures to better reflect the critical role that internal audit has within organisations.
Join us as we take a look at the typical performance measures used by audit leaders and ask if they are adding any value to your stakeholders.
Most audit leaders use KPIs: engagements completed, stakeholder satisfaction, management action plans completed and timeliness of report issue were the most common KPIs according to a Deloitte global survey of Chief Audit Executives (CAEs) in 2018.
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Image credit: Deloitte - The Innovation Imperative 2018
These legacy measures resonate with internal audit stakeholders at every level. They are readily understood and evidenced.
- But do they truly measure the value of internal audit?
- Do they advocate a profession that is relevant?
- Are they fit for purpose?
Fit for the future
Internal audit is a changing profession.
Audit leaders, along with their business counterparts, are continually reminded that transformation, innovation and agility are the new normal; essentials of the digital age.
In 2018, Protiviti identified a series of next-generation internal audit competencies, which are shown in the diagram below. Richard Chambers, IIA Global’s President and CEO, discussed internal auditors competencies at length at the Institutes’ annual conference in October 2019, where he said that in order to be relevant in today’s world, internal audit activities need to identify emerging risks, leverage technology and innovate how they work. He also called for better planning of audit engagements, sharper communicating and outcomes that are more insightful.
Image credit: Protiviti - The Next…