IA KPIs

• What reporting requirements may the CAE consider in using a checklist to communicate?

  • internal audit charter: purpose, authority, responsibility; mandatory elements in the IPPF
  • IA's organisational independence confirmed annually
  • internal audit plans, resource requirements, and performance
  • results of audit engagements
  • QAIP
  • Conformance with Code of Ethics and the Standards
  • significant risk and control issues and management's acceptance of risk.
• How do most CAE report on engagements?

  • By providing a summary of audit work by area
  • By discussing only major issues
  • By distributing copies of all their audit reports
• What are the best practices for CAE reporting?

  • Executive summaries.
  • Material in advance.
  • Actions, not just issues.
  • An event matrix.
  • Nature, extent, and overall results of formal consulting engagements.
• Internal audit KPIs allow the CAE to?

  • Detect shortcomings in the activity.
  • Plan remedial action.
  • Demonstrate the value of internal auditing to customers.
  • Support requests for resources needed to support the desired level of performance.
• What should Internal Audit KPIs consider?

  • organisation's objectives
  • internal audit objectives in the internal audit charter
  • stakeholder's needs
  • benchmarking against similar peer organisations
• What are the common internal audit KPIs?

  • Board (or audit committee) expectation met.
  • Percentage of audit plan complete.
  • Internal auditor workforce satisfaction.
  • Client satisfaction: usefulness of recommendations.
  • Cycle times (duration of period audits).
  • Performance against the IA financial budget.
  • Budget to actual audit times.
  • Completion of initiatives in professional development plan.
• Internal assessments of QAIP requires that The results of ongoing monitoring of the internal audit activity’s performance should be reported in a manner desired by stakeholders at least annually.
• The discussion of external assessments of QAIP must be discussed by the CAE with the board, which must cover:

  • The qualifications and independence of the external assessor or assessment team.
  • Any potential conflict of interest.
• The results of internal assessments of QAIP include?

  corrective action plans and progress against completion