Recently, Protiviti and the Institute of Internal Auditors – Australia, conducted research with chief audit executives from over 150 organizations in the public and private sectors, highlighting how organizations must address a number of issues to enable their internal audit function to effectively advance good corporate governance.
Specifically, the research found:
- A significant number of internal audit functions lack the appropriate framework to operate independently and objectively
- An excessive level of influence is exercised by executive management over audit committee activities and the oversight and management of the internal audit function
- The majority of internal audit functions are unable to demonstrate compliance with the International Standards for the Professional Practice of Internal Auditing (Standards)
As you review this report, you should ask yourself:
- Are the governance structures for your internal audit function sufficient to allow your organization to have a truly independent and objective internal audit function?
- How is your organization placed to respond to the emerging trends facing internal auditors?
- How are you driving quality in your internal audit function, and is it aligned to the Standards?
- How are you addressing key competency gaps within your internal audit function?
- Is internal audit really meeting the needs of your stakeholders?
Topics addressed in this survey include:
- Authority, Independence and Mandate
- Who appoints and removes the CAE?
- Appointment and removal of CAE by sector
- Setting the remuneration and bonus by sector
- Evaluating performance of the CAE
- Approving internal scope and budget
- Composition of the audit committee
- CAE meeting privately without management
- Challenges and Trends
- Change in structure and direction of internal audit in the last three years
- Change in scope of internal audit in last three years
- Change in scope of internal audit in next three years
- Emerging priorities in next three years
- Impact of the global financial crisis on internal audit activity
- Quality
- Ensuring quality in internal audit
- Level of compliance with the Standards
- Level of compliance with the Standards by sector
- Last external quality assessment review
- Last external quality assessment by number of staff in internal audit
- Internal Audit Resources and Competencies
- Number of FTE personnel in internal audit
- Unfilled demands for technical skills
- Internal audit capabilities and needs
- Enablers and Technology
- Relationship between the internal audit and risk management functions
- Functionality provided by the primary tool and its usefulness
- Outcomes
- Extent of reliance by external auditor
- KPIs used to measure internal audit performance
- Providing assurance opinions
Download the entire survey report:
Achieving High Performance in Internal Audit Poll