The IIA s Global Internal Audit Survey. A Component of the CBOK 1 Study

Transcription

1 The IIA s Global Internal Audit Survey A Component of the CBOK 1 Study Introduction The Institute of Internal Auditors Research Foundation (IIARF), under the auspices of the William G. Bishop III, CIA, Memorial Fund, is soliciting proposals for the development of five modules that have been identified as critical deliverables of The IIA s Global Internal Audit Survey A Component of the CBOK Study. The purpose of the survey is to elicit the most current perspectives and opinions from a large cross-section of practicing internal auditors, internal audit service providers and academics about the nature and scope of their assurance and consulting activities on the profession s status worldwide. The results will provide insight into emerging issues and trends, as well as developments and changes within the profession since the last survey was conducted in The survey, offered in more than 20 languages, will be open from March 15 May 17, 2010, and is expected to be completed by more than 15,000 internal auditors, service providers, and academics in internal auditing from around the globe. Survey data is expected to be available in July For more information on the survey, please visit Module Deliverables Overview This study includes five deliverables: I. Characteristics of an Internal Audit Activity examines the demographics and other attributes of the worldwide population of internal auditors and what this means for the internal audit profession. II. Core Competencies for Today s Internal Auditor identifies the attributes of an effective internal audit activity and what internal auditors really need to know to perform their jobs with due care while adding value to their respective organizations. III. Measuring Internal Auditing s Value focuses on the value of internal auditing under dynamic business conditions by presenting the key elements, criteria, and drivers of the value delivered by an internal audit activity and what needs to be done to maintain the profession s continuing relevance. IV. What s Next for Internal Auditing? provides forward-looking insight identifying perceived changes in the roles of the internal audit activity over the next five years, changing stakeholder expectations, and what internal auditing must do to adapt itself in a resilient fashion. V. Imperatives for Change: The IIA s Global Internal Audit Survey in Action contains conclusions, observations, and recommendations for the internal audit activity to anticipate and match organizations fast-changing needs to strategically position the profession for the long term. To facilitate a timely turnaround in sharing the immediate results, a framework for each module deliverable has been developed. Please refer to pages 3 7 for a detailed description of module content requirements. 1 CBOK Common Body of Knowledge 1

2 Authors of each module deliverable are encouraged to write academic/professional papers for submission to academic and/or professional journals in addition to completing one or more of the proposed module deliverables. Audience Internal audit practitioners, related stakeholders, and others who have an interest in the profession and its continuing relevance for the future are the primary audience for all module deliverables. Research Data The following research data will be made available: Survey data from 2010 study Survey data from 2006 study for comparative analysis and trending Initial analysis of data In addition, all survey questions have been mapped to the related module deliverable to facilitate the research and writing process. Module Publication Schedule The initial module deliverables are expected to be published by the end of 2010 in print and online. Funding Components of the 2010 version of the CBOK Study, including The IIA s Global Internal Audit Survey, are funded through the William G. Bishop III, CIA Memorial Fund. A total of US $55,000 is available to fund the five anticipated modules. Proposal Submission If you are interested in submitting a proposal for one or more of the module deliverables, please provide the following information in two or three pages per module deliverable: The module deliverable to which the proposal pertains Proposed methodology for conducting any additional data analysis Proposed project plan including milestones, timeline, and budget Resources and information necessary to proceed as proposed Curriculum vitae, professional résumé, and any other information that will assist with the proposal review (This information may be presented in an addendum.) To be considered, proposals must be received no later than 5:00 p.m. ET on May 31, Please submit proposals via as an attached Microsoft Word document to Selma.Kuurstra@theiia.org. For additional information, contact The IIA Research Foundation: Telephone: Selma.Kuurstra@theiia.org 2

3 The IIA s Global Internal Audit Survey A Component of the CBOK Study Introduction The purpose of the module deliverables is to provide internal audit practitioners, related stakeholders 2, and others who may have an interest in the profession with relevant information on the current role of the internal audit activity while providing insight about where the profession may be heading. The module deliverables are designed to be a practical resource from which practitioners and stakeholders can draw during strategic planning and decision-making processes regarding the future course of the internal audit activity. The module deliverables also should challenge readers to think creatively when using the information to the benefit of their own organization and/or to most effectively address any challenge the internal audit activity or its organization may face. Authors will be provided with survey response data from the 2006 CBOK Study and the 2010 Global Survey that specifically applies to the separate module deliverables. Authors are advised to use all survey data where the module deliverable may require additional input and/or if a broader view is necessary. A comprehensive comparison of the 2006 and 2010 data is expected where applicable. Additionally, module deliverables must be focused, concise, and offer a global perspective that takes into consideration cultural variability and its impact on how the internal audit activity functions around the world. For consistency and efficiency, all module deliverables should follow a basic chapter outline that is posted online at The IIARF Web site. The descriptions below provide an understanding of what is expected per module; the thought-provoking questions are offered as a guide. Requirements Per Module Deliverable Module I Deliverable Characteristics of an Internal Audit Activity This module should offer direction with regard to strategic planning and decision-making processes, including staffing, training, career development, internal audit curriculum, and the internal audit activity itself, as well as specifically address the assurance and consulting aspects of the internal audit activity. Additionally, the module deliverable should help in understanding the demographics and other characteristics of the internal auditor population, as well as implications for the profession. The module deliverable will draw from the following parts of the survey. If necessary, authors are encouraged to support their conclusions with data from additional parts of the survey. Demographics How has the retention rate at companies changed in regard to an auditor s gender, age, educational level, and length of time in internal auditing? Given the global impact of the current economic crisis, how has the 2 Stakeholders include the chair of an audit committee or equivalent body, chief executive officers, chief financial officers, or other officials to whom the CAE may report. 3

4 education level changed for entry-, senior-, manager-, and chief audit executive (CAE)-level positions since 2006? What is the proportion of internal auditors working for service providers compared to in-house internal audit activities? What are the future growth sectors for internal auditors? Has the age of the internal auditor changed? What does the profession look like from a national or global perspective? Staffing Levels How has the education level changed for the entry-, senior-, manager-, and CAE-level positions since 2006? What is the nature of incentives or other nonfinancial benefits that organizations are offering to hire and retain staff? What changes are expected regarding global permanent staffing levels over the next five years? What are the benefits of internal audit involvement in management trainee and internship programs? What methods are frequently used for bridging the gap pertaining to staff vacancies and missing skill sets? What percentage of internal auditing s work is currently outsourced or co-sourced, and who approves the staffing levels for the internal audit department? What impact, if any, is the current global economic crisis having on the education and experience level of entry-, senior-, manager-, and CAE-level positions? What impact has technology had on staffing levels since 2006? Structure/Reporting Relationships What is the impact of the emergence of quality assurance functions (e.g., the corporate compliance officer) and risk management functions on internal auditing s reporting relationship? What is the nature and scope of internal auditing s assurance and consulting engagement across governance, risk, control, and compliance? What is the current mix between assurance and consulting engagements? Have there been any shifts in the reporting relationships of global internal audit functions, such as reporting to the chair of the audit committee, the chief executive officer, general counsel, etc.? How has the role of the audit committee changed over the years as a result of the current global economic crisis, and what is the impact on the internal audit activity? What is the percentage of CAEs who directly report to the audit committee? What is the level of CAE participation and interaction with the audit committee, including the average number of committee meetings held each year and the number of times the CAE meets privately with the audit committee? What is the level of participation in the preparation of the annual report on internal controls and other internal control reporting to third parties? Module II Deliverable Core Competencies for Today s Internal Auditor This module will provide insight on core competencies for today s internal auditors, including the use and effectiveness of the International Standards for the Professional Practice of Internal Auditing (Standards) and of audit tools and techniques during audit engagements. Additionally, the module should provide insight regarding the importance of different types of behavioral and technical skills and certain competencies internal auditors should possess to successfully perform as practitioners. The module must focus on the following parts of the survey. The Standards Are the Standards useful for internal audit activities or groups in the execution of internal auditing for its constituents or clients? Do individual components of the Standards reflect relevant attributes and activities needed to fulfill internal auditing s mission and role within the organization? Is the cost versus benefit of complying with all Standards fully justified? Are the Standards written in such a way to enable the internal 4

5 audit activity to adapt to changes in the business and overall economic environment? How can the quality assessment process further emphasize substance over form? Competence and Skills Has the global recession impacted internal auditors ability to execute their responsibilities? Are they still competent to address the risks their organization faces? How has the internal audit activity adapted to shrinking budgets, staffing reductions, and other resource constraints? How does the activity measure its skills in comparison to the risks faced by the organization? How have successful internal audit activities adapted to organizational risks? What factors have inhibited success? Has the need for soft skills changed during the past few years? If so, why and how have successful internal audit activities adapted? Tools and Techniques Has the use of audit tools changed the way internal auditing is performed? Have the investments in, and use of, new tools and techniques sufficiently justified the benefits received by the internal audit activity and the organization as a whole? What types of tools have provided the greatest and least benefits to date, and why? Has the use of new tools and techniques improved the overall performance of the business as well as the internal audit activity? Module III Deliverable Measuring Internal Auditing s Value This module should focus on the value of internal auditing under dynamic business conditions and present the key elements, criteria, and drivers of the value delivered by an internal audit activity. The module also should provide insight and tools, if possible, which will direct internal audit activities in delivering the value expected from them. Additionally, the module needs to establish whether value changes over time if it is affected by fluctuations in an organization s economic and operating environment or if value is affected by location. Key Success Factors What are some key success factors for delivering value to stakeholders? How much is dependent on governance and other support mechanisms in the organization? What is within the CAE s control? How much is dependent on the level of support or funding extended to the internal audit activity? Do the CAE and the internal audit activity have the proper organizational status and independence? Is there a clear and shared vision among the internal auditor and stakeholders on the role of internal auditing in the organization? Are success factors different for practitioners, stakeholders, and the organization as a whole? What internal audit services provide value to customers and/or clients, and how are these expected to change in the future? How is value driven by implementation of a quality assurance and improvement program? Methods or Mechanisms Used to Measure Internal Auditing s Added Value What is the balance between hard and soft measures? What is the balance between client, audit process, and risk measures? How are these aligned with the organization s governance, risk, and control processes? How is the value proposition defined and understood, and are the measures in line with the value proposition? Who or which group contributes to the assessment of value provided by the internal audit activity? Are measures changing in line with emerging and projected future trends? 5

6 Tools, Skills, and Competencies What tools, skills, competencies, and/or enablers can be used to create or enhance value in internal audit work? How have these changed? How are these expected to change in the future to ensure the internal audit activity provides value? What tools, techniques, skill sets, or competencies drive the most value from the resources employed by an internal audit activity? Co-sourcing/Outsourcing Arrangement Value Proposition What are the key elements, criteria, and drivers of the value delivered by a co-sourced or outsourced internal audit arrangement? Under what circumstance does it make sense to consider co-sourcing and outsourcing arrangements? How have sourcing arrangements changed over the last five years? What are the future prospects? Impact of Emerging Trends How do changes in the operating environment and the expected maturity of the internal audit activity influence the perceived value of the internal audit activity? What is the impact of emerging issues, changes, and trends to the value proposition or delivery? Module IV Deliverable What s Next for Internal Auditing? This module will share insight that identifies perceived changes in the roles of the internal audit activity during the next five years. It will take into consideration governance, risks, controls, compliance, technology, and the impact on the profession going forward. Based on the analysis of specific survey questions, this module should communicate a multidimensional portrait of emerging trends in the internal audit profession by: Understanding what functions internal auditors perform today versus what respondents see five years out. Discuss what implications these perceptions might hold for management s expectations of the internal audit activity. Considering the tools and techniques currently used for audits, as well as what is expected to be used going forward, analyze what this means for the audit activity in terms of hiring, educating, and training new internal auditors. Additionally, analyze how these tools and techniques may impact technology currently in use and technology that may be needed in the future. Examining the basis of the organization s current need for internal auditing and what is expected five years from the survey to identify implications for a changed strategic role and whether the need for internal auditing may increase or decrease. Comparing the 2006 data with the 2010 data to assess whether there is pertinent information that may help better understand or explain trends specifically directed to change over time for internal audit activities. 6

7 Module V Deliverable Imperatives for Change: The IIA s Global Internal Audit Survey in Action 3 The challenge for the internal audit profession is envisioning the future while aligning itself with organizations strategies and ever-changing business plans. The internal audit activity should be the in-house or co-sourced resource most adept at providing assurance as well as consulting advice to executive management and the board. What do CAEs perceive as opportunities and challenges for the profession? This module should provide insight into these opportunities and actions for the internal audit activity to stay on the leading edge by: Securing and reinforcing how internal auditing is positioned as a valued and strategic executive function working with the management team. Understanding how internal auditors can move from experts in controls and compliance to strategic partners while maintaining their objectivity to be recognized as assurance leaders in organizations. Identifying what types of change management the internal audit activity and/or its organization may be advised to implement during the next five years. Exploring opportunities to enhance the perception of the internal audit function and how it adds value. Determining the go-forward strategies and positioning of the internal audit activity for maximal effectiveness in performance with a view to keeping the internal audit profession relevant, vibrant, and visionary. Conclusion Please refer to pages 1 2 for proposal submission requirements and instructions. For additional information, contact The IIA Research Foundation: Telephone: Selma.Kuurstra@theiia.org 3 The author(s) will be provided with data and results of module deliverables I IV to provide a comprehensive understanding of the survey results, especially the provided input and vision expressed by CAEs. 7