List of Key Performance Indicators

Transcription

1 Internal Audit Quality: Developing a Quality Assurance and Improvement Program, First Edition. Sally-Anne Pitt by John Wiley & Sons, Inc. Published 2014 by John Wiley & Sons, Inc. APPENDIX C List of Key Performance Indicators Quality Indicators Quality Assurance and Improvement Program Quality assurance and improvement program implemented Internal Assessment Periodic assessments and/or health checks performed on a biannual basis All policies and procedures covered through health checks Conformance with policies and procedures Professional standards covered through health checks Conformance with professional standards Numbers of improvements embedded Proportion of engagement working papers reviewed through health checks Level of management satisfaction Level of audit committee satisfaction External Assessment External assessment undertaken at least once every five years Strategy and Planning Indicators Annual review of the internal audit strategy Endorsement of the strategy by the audit committee Endorsement of the internal audit values by the audit committee Level of management satisfaction with strategy Level of audit committee satisfaction with strategy Internal audit risk assessments conducted annually Capability and resource planning undertaken annually Business continuity planning undertaken annually 345

2 346 Appendix C Areas of Responsibility Indicators Total number of engagements completed by the internal audit function (include Time spent on functional engagements, program-based engagements, and integrated auditing Number of assurance engagements completed by the internal audit function Number of assurance engagements performed by the internal audit function as a proportion of overall plan Number of compliance audits, operational/performance audits, IT audits, management initiated reviews, and consulting engagements completed (include Number of compliance audits, operational/performance audits, IT audits, management initiated reviews, and consulting engagements as a proportion of overall plan Time spent on compliance audits, operational/performance audits, IT audits, and consulting engagements as a proportion of overall plan Time spent on fraud investigations as a proportion of the overall plan (include Time spent on management-initiated reviews as a proportion of the overall plan Time spent on follow-up audits Time spent on audit support activities Relative proportion of time spent on consulting versus assurance engagements Relative proportions of time spent on governance, risk management, and control assurance Number of engagements incorporating governance, risk management, and control elements Number of engagements focused exclusively on governance, risk management, or control assurance Internal Audit Charter Indicators The number of times the chief audit executive meets privately with the chief executive officer and other senior management The number of times the chief audit executive meets privately with the audit committee The number of strategic committees that internal auditors are involved in (include Annual review of the internal audit charter Compliance with internal audit charter

3 Appendix C 347 Resourcing Indicators Budget Delivery of operations in accordance with approved budget Resources allocated to the internal audit function relative to international benchmarks Levels of expenditure (budget versus actual, costs per auditor day, ratio of payroll to other costs, comparison between audit sections, comparison with previous periods) Cost of audit as a proportion of total corporate operating costs Comparison of audit budget to actual costs Ratio of audit payroll costs to other audit costs Ratio of productive to unproductive audit time Costs per implemented audit recommendation Ratio of outputs (products, programs, or services) to inputs (resources utilized) meets or exceeds established standards, targets, or benchmarks Staffing Capability plan reviewed on an annual basis Number of auditors per 1,000 staff average compared to sector average (include Number of auditors as a percentage of total corporate staff Average years of staff experience Number of years of audit experience Number of years in area of current audit Proportion of internal auditors with degree and postgraduate qualifications Number of professional certifications/percentage of staff certified Absenteeism rates Level of internal audit staff turnover Number of new hires versus total number of staff on audit team Levels of internal audit staff satisfaction Levels of internal audit staff grievances Existence and annual update of a flexible work policy Flexible work practices offered to all staff Proportion of staff utilizing flexible work practices Candidate satisfaction with recruitment and/or induction processes (include Time taken to successfully recruit to vacant position Cost of recruitment/cost per hire Completion of induction by all new recruits Number of times guest auditors utilized on engagements Number of internal audit staff seconded to other parts of the organization (include Number of staff rotated into internal audit

4 348 Appendix C Outsourcing Relative proportions of the internal audit plan insourced and outsourced (include Turnover of staff within the service provider allocated to engagements for the organization Years of relevant experience among service provider staff allocated to engagements for the organization Time allocated by external providers to share learning with in-house staff (include Number of better practices recommended by the service provider Number of systemic issues identified by the service provider Proportion of time spent by the service provider in meeting with management Professional Development Indicators Proportion of internal audit staff performance evaluations completed on an annual basis Development and review of a capability plan on an annual basis Proportion of budget allocated to professional development Regularity of staff meetings Proportion of individual training/development plans implemented Average training hours per internal auditor Attendance at professional meetings Number of internal audit staff involved as volunteers in professional associations Number of internal audit staff involved in mentoring activities Policy and Procedures Indicators Existence of policies and procedures Annual review of policies and procedures Extent to which policies and procedures are being applied by internal audit staff Annual Planning Indicators Proportion of senior managers consulted as part of the planning process (include Level of senior management satisfaction with the audit plan Proportion of the organization s strategic priorities addressed in the audit plan Conduct of a periodic, at least annual, comprehensive risk assessment Percentage of key risks audited per annum

5 Appendix C 349 Proportion of audit universe addressed in the audit plan Extent of coverage of strategic priorities Extent of coverage of key business activities Proportion of geographic and functional areas addressed in the audit plan (include Percentage of major projects audited per annum Percentage of major systems audited per annum Percentage of systems under development audited per annum Existence of audit committee concerns regarding unaddressed risks Completion of audit plan Numbers of management initiated requests Engagement Planning Indicators Engagement client consulted prior to the engagement commencing Risk assessments conducted of the auditable areas as part of engagement planning Analytical procedures and CAATs are used in a minimum number of engagements Engagement risk assessments conducted for 100 percent of operational/performance audits Total hours used in planning versus scheduled hours used Total hours planning versus total engagement hours Engagement Performance Indicators The cause and effect of all findings and observations documented within working papers Closing interviews held for all audit engagements The chief audit executive attending all closing interviews Working papers completed and appropriately reviewed for all engagements Timeliness of fieldwork Percentage audit plan completed Number of audits completed Proportion of audits completed within prescribed time frames Proportion of audits completed within prescribed budget Proportion of billable/recoverable hours versus nonbillable/nonrecoverable hours Level of engagement client satisfaction Actual time spent versus budget Communication Indicators The number of times the chief audit executive meets privately with the chief executive officer and other senior management

6 350 Appendix C The number of times the chief audit executive meets privately with the audit committee The completion and update of a stakeholder engagement map on an annual basis. Elapsed time for issue of reports completion of engagement fieldwork to issue of draft report Elapsed time for finalization of report issue of draft report to issue of final report Percentage of recommendations accepted Perceived importance of audit findings and recommendations Percent of audit recommendations implemented Knowledge Management Indicators Knowledge management strategies implemented Professional networking events attended by staff Systemic audit issues identified and shared with organization Communities of practice established and meetings held Marketing Indicators The level of awareness of internal audit across the organization The proportion of internal audit time devoted to marketing activities (include The number of general information sessions provided by the internal audit function to the organization The development and maintenance of an internal audit website The amount of marketing collateral produced by the internal audit function