Benchmarking Report Share, Compare, Validate Year: 2017 Your Organization Date
Benchmarking Tier 1: Your Organization Benchmarking Tier 2: Services Benchmarking Tier 3: Services $1B to $5B Benchmarking Tier 4: Services & Staff Size 1 to 5 Benchmarking Tier 5: Universe Terms and Conditions This report contains confidential data and is for the exclusive use of your organization. Distribution to other companies is strictly prohibited. By accepting this document you are consenting to be bound by an agreement between your organization and the Institute of lntemal Auditors (The IIA). Unauthorized reproduction or distribution of this document, or any portion of it, may result in severe civil or criminal penalties. Your suggestions for improvement are always welcome and can be submitted via e-mail to AIS@theiia.org. Thank you for your continued participation in the Audit Intelligence Suite Benchmarking Report.
Table Of Contents Section 1: Demographic Information Page 1 Respondents by Tier Group... Page 2 Demographic Information: Financial... Page 3 Respondents by Expense Class... Page 4 Demographic Information: Employees... Page 5 Respondents by Industry... Page 6 Organizational Demographics... Page 7 Organizational Demographics... Page 8 Sarbanes-Oxley... Page 9 Section 2: Summary Information Page 10 Summary Information (Tier 1)... Page 11 Summary Information (Tier 2)... Page 12 Summary Information (Tier 3)... Page 13 Summary Information (Tier 4)... Page 14 Summary Information (Tier 5)... Page 15 Revenues and Assets Per Auditor... Page 16 Expenses and Employees Per Auditor... Page 17 Section 3: Internal Audit Costs Page 18 Summary of Audit Costs... Page 19 Salary and Bonuses as % of Total Audit Costs (Excl. Benefits & Costs)... Page 20 Salary and Bonuses as % of Total Audit Costs (Incl. Benefits & Costs)... Page 21 Benefits as a Percentage of Total Audit Costs... Page 22 Travel and Training as % of Total Audit Costs (Excl. Benefits & Costs)... Page 23 Travel and Training as % of Total Audit Costs (Incl. Benefits & Costs)... Page 24 Total Costs per Auditor... Page 25 Total Costs per Auditor (with and without Travel)... Page 26 Travel and Training Costs per Auditor... Page 27 Section 4: Internal Audit Staffing Page 28 Internal Audit Staff Profile... Page 29 Change in Internal Audit Staff Size... Page 30 Summary of Professional Audit Staff by Function... Page 31 General and IT Auditors as a Percentage of Total Auditors... Page 32 Fraud and ESH Auditors as a Percentage of Total Auditors... Page 33 Other Compliance Auditors as a Percentage of Total... Page 34 Presence of Dedicated IT Audit Group... Page 35 Level of Education Sought for Auditors... Page 36 Level of Education Sought for Auditors Continued... Page 37 Internal Audit Experience of Auditors... Page 38 Relevant Non-Internal Audit Experience of Auditors... Page 39 Industry Experience of Auditors... Page 40 Staff with Professional Designation as Percent of Total Staff... Page 41 Percent of Staff with Professional Designations... Page 42 Professional Designation Mix... Page 43 CIA Designation... Page 44 Internal Audit Hiring Practices... Page 45 Staff Turnover... Page 46 Training Hours... Page 47 Section 5: Sourcing Page 48 Sourced Staff Profile... Page 49 Costs of Purchased Services... Page 50 Level of Sourcing... Page 51 What Internal Audit Activities are Sourced... Page 52 Percentage of Audit Areas Sourced... Page 53 Sourced Hours and Fees... Page 54 Fees For Purchased Services... Page 55 Future Reliance on Sourcing... Page 56
Section 6: External Audit Page 57 External Audit... Page 58 Total IA Hours Spent on External Audit... Page 59 External Audit Fees as Percentage of Total Revenues, Assets, and Expenses... Page 60 Section 7: Internal Audit Oversight Page 61 Section 7.1: Internal Audit Oversight - Chief Audit Executive Page 62 CAE Administrative Reporting Line... Page 63 CAE Functional Reporting Line... Page 64 Title of Chief Audit Executive... Page 65 Responsibilities of Chief Audit Executive... Page 66 Section 7.2: Internal Audit Oversight - Audit Committee Page 67 Audit Committee... Page 68 Audit Committee Chair... Page 69 Audit Committee Chair... Page 70 Private Sessions with Audit Committee... Page 71 Presence of Audit Committee Charter... Page 72 Responsibilities of Audit Committee... Page 73 Information Shared with Audit Committee... Page 74 Professional Development of Audit Committee Provided by Internal Audit... Page 75 Evaluations of Audit Committee and Charter... Page 76 Expertise Present on Audit Committee... Page 77 Section 8.2: Risk Assessments Page 89 Presence of Formal Risk Assessment Process for Internal Audit... Page 90 Frequency of Internal Audit Risk Assessment... Page 91 Factors Influencing Risk Assessment... Page 92 Presence of Engagement Level Risk Assessments... Page 93 Engagement Level Risk Assessments... Page 94 Section 9: Audit Implementation / Life Cycles / Reporting Page 95 Allocation of Audit Staff Time... Page 96 Audit Life Cycle... Page 97 Audit Life Cycle - Reporting... Page 98 Tools and Techniques Utilized on Audits... Page 99 Audit Engagement Reporting... Page 100 Section 9.1: Observations and Follow-Up Audits Page 101 Audit Follow-Up Activities... Page 102 Days Outstanding for Open Items... Page 103 Opinion Activities... Page 104 Section 10: Performance Management Page 105 Presence of Formal Quality Assurance and Improvement Program... Page 106 Section 10.1: Internal Quality Assessments Page 107 Frequency of Internal Quality Assessments... Page 108 Internal Quality Assessments... Page 109 Section 8: Risk Assessment and Audit Planning Page 78 Section 10.2: External Quality Assessments Page 110 Completion of External Quality Assessment... Page 111 Section 8.1: Audit Planning Page 79 Obstacles of External Quality Assessment... Page 112 Audit Performance... Page 80 Performance of External Quality Assessments... Page 113 Percent of Audits Planned Actually Performed... Page 81 Results of External Quality Assessment Shared With... Page 114 Number of Unplanned Audits... Page 82 Audits Per Auditor... Page 83 Allocation of Audit Plan... Page 84 Percent of Total Hours for Unallocated Time... Page 85 Percent of Management Requests Completed... Page 86 Type of Audit Plan... Page 87 Years Covered By Audit Plan... Page 88 Section 11: Subscribers By Industry Group Page 115
Section 1: Demographic Information
Respondents by Tier Group Respondents Your Organization 1 Services 34 Services $1B to $5B 11 Services & Staff Size 1 to 5 10 Universe 333 Page 2
Demographic Information: Financial Page 3
Respondents by Expense Class Page 4
Demographic Information: Employees Page 5
Respondents by Industry Value Aerospace and Defense 1% Agriculture, Forestry, and Fisheries 2% Chemical/Drug 2% Communications/Telecommunications 4% Engineering/Construction 2% Education 3% Energy, Oil & Gas, and Mining 10% Financial Services/Banking/Insurance 36% Government 11% Healthcare 6% Manufacturing 17% Real Estate 2% Services 10% Technology 6% Transportation 4% Utilities 10% Wholesale/Retail 8% Page 6
Organizational Demographics Page 7
Organizational Demographics Page 8
Sarbanes-Oxley Page 9
Section 2: Summary Information
Summary Information(Your Organization) Under $500 Million Revenues Revenues Total Employees Audit Staff Count Internal Audit Costs Total External Audit Fees IA Costs AS % of Revenues EA Fees AS % of Revenues $500 Million - $1 Billion $1 Billion - $5 Billion $5 Billion - $15 Billion $5,000,000,000 1,000.00 4.00 $325,000 $50,000 0.0065% 0.001% $15 Billion - $25 Billion Over $25 Billion Assets Total Employees Audit Staff Count Internal Audit Costs Total External Audit Fees IA Costs AS % of Assets EA Fees AS % of Assets Under $500 Million $500 Million - $1 Billion $1 Billion - $5 Billion $5 Billion - $15 Billion $5,000,000,000 1,000.00 4.00 $325,000 $50,000 0.0065% 0.001% $15 Billion - $25 Billion Over $25 Billion Assets Under $500 Million Expenses Expenses Total Employees Audit Staff Count Internal Audit Costs Total External Audit Fees IA Costs AS % of Expenses EA Fees AS % of Expenses $500 Million - $1 Billion $1 Billion - $5 Billion $4,000,000,000 1,000.00 4.00 $325,000 $50,000 0.0081% 0.0013% $5 Billion - $15 Billion $15 Billion - $25 Billion Over $25 Billion Page 11
Summary Information(Services) Revenues Revenues Total Employees Audit Staff Count Internal Audit Costs Total External Audit Fees IA Costs AS % of Revenues EA Fees AS % of Revenues Under $500 Million $294,201,808 1,544.00 3.36 $699,016 $256,893 0.2914% 0.1009% $500 Million - $1 Billion $746,316,333 2,279.00 6.00 $1,871,387 $3,087,917 0.3395% 0.5549% $1 Billion - $5 Billion $2,880,191,000 13,795.00 13.50 $2,337,601 $3,144,157 0.0942% 0.1157% $5 Billion - $15 Billion $8,231,548,634 78,436.00 27.70 $3,522,967 $3,536,697 0.0391% 0.0481% $15 Billion - $25 Billion $19,276,615,000 132,333.00 35.80 $5,055,094 $2,100,000 0.027% 0.0119% Over $25 Billion $38,419,430,750 234,250.00 87.13 $12,763,622 $6,854,062 0.0341% 0.0196% Assets Assets Total Employees Audit Staff Count Internal Audit Costs Total External Audit Fees IA Costs AS % of Assets EA Fees AS % of Assets Under $500 Million $278,916,779 1,696.00 2.54 $612,098 $179,665 0.468% 0.0823% $500 Million - $1 Billion $684,000,000 1,806.00 5.10 $714,500 $1,175,000 0.1006% 0.1502% $1 Billion - $5 Billion $2,069,503,578 6,619.00 8.51 $1,357,583 $942,370 0.0607% 0.0488% $5 Billion - $15 Billion $8,771,526,815 52,903.00 21.02 $3,065,224 $4,033,856 0.0396% 0.0503% $15 Billion - $25 Billion $20,931,983,750 148,633.00 38.48 $6,222,067 $2,502,609 0.0292% 0.0123% Over $25 Billion $715,580,800,000 127,340.00 62.70 $9,539,689 $8,129,333 0.0246% 0.0184% Expenses Expenses Total Employees Audit Staff Count Internal Audit Costs Total External Audit Fees IA Costs AS % of Expenses EA Fees AS % of Expenses Under $500 Million $260,654,903 1,544.00 3.36 $699,016 $256,893 0.3114% 0.1122% $500 Million - $1 Billion $747,450,250 2,760.00 9.00 $2,078,290 $2,702,688 0.2984% 0.4023% $1 Billion - $5 Billion $2,768,044,272 21,006.00 13.32 $2,323,873 $3,633,268 0.0868% 0.1341% $5 Billion - $15 Billion $7,435,941,769 76,743.00 31.60 $3,847,955 $2,732,596 0.0458% 0.0358% $15 Billion - $25 Billion $19,158,678,000 132,333.00 35.80 $5,055,094 $2,100,000 0.0271% 0.0121% Over $25 Billion $35,950,780,250 234,250.00 87.13 $12,763,622 $6,854,062 0.0363% 0.0203% Page 12
Summary Information(Services $1B to $5B) Under $500 Million Revenues Revenues Total Employees Audit Staff Count Internal Audit Costs Total External Audit Fees IA Costs AS % of Revenues EA Fees AS % of Revenues $500 Million - $1 Billion $1 Billion - $5 Billion $2,880,191,000 13,795.00 13.50 $2,337,601 $3,144,157 0.0942% 0.1157% $5 Billion - $15 Billion $15 Billion - $25 Billion Over $25 Billion Assets Total Employees Audit Staff Count Internal Audit Costs Total External Audit Fees IA Costs AS % of Assets EA Fees AS % of Assets Under $500 Million $500 Million - $1 Billion $1 Billion - $5 Billion $2,297,139,500 10,190.00 11.15 $1,762,117 $1,341,750 0.0767% 0.0595% $5 Billion - $15 Billion $9,012,638,000 13,998.00 16.48 $2,906,190 $4,586,083 0.0368% 0.0442% $15 Billion - $25 Billion Assets Over $25 Billion $3,400,000,000,000 27,000.00 5.00 $1,228,000 Under $500 Million Expenses Expenses Total Employees Audit Staff Count Internal Audit Costs Total External Audit Fees IA Costs AS % of Expenses EA Fees AS % of Expenses $500 Million - $1 Billion $793,200,000 4,200.00 18.00 $2,699,000 $1,547,000 0.3403% 0.195% $1 Billion - $5 Billion $2,550,648,700 14,755.00 13.05 $2,301,461 $3,343,802 0.0903% 0.1358% $5 Billion - $15 Billion $15 Billion - $25 Billion Over $25 Billion Page 13
Revenues Total Employees Audit Staff Count Internal Audit Costs Total External Audit Fees IA Costs AS % of Revenues EA Fees AS % of Revenues Under $500 Million $280,434,608 1,551.00 2.46 $544,484 $287,208 0.2679% 0.1145% $500 Million - $1 Billion $978,137,000 1,996.00 4.00 $353,979 $500,000 0.0362% 0.0511% $1 Billion - $5 Billion $2,383,794,000 14,344.00 5.00 $1,109,964 $600,000 0.0631% 0.0562% $5 Billion - $15 Billion $15 Billion - $25 Billion Over $25 Billion Summary Information(Services & Staff Size 1 to 5) Revenues Assets Total Employees Audit Staff Count Internal Audit Costs Total External Audit Fees IA Costs AS % of Assets EA Fees AS % of Assets Under $500 Million $278,916,779 1,696.00 2.54 $612,098 $179,665 0.468% 0.0823% $500 Million - $1 Billion $500,000,000 300.00 3.20 $431,000 $350,000 0.0862% 0.07% $1 Billion - $5 Billion $1,224,514,666 1,919.00 3.43 $555,268 $584,863 0.0438% 0.0484% $5 Billion - $15 Billion $15 Billion - $25 Billion Assets Over $25 Billion $3,400,000,000,000 27,000.00 5.00 $1,228,000 Expenses Total Employees Audit Staff Count Internal Audit Costs Total External Audit Fees IA Costs AS % of Expenses EA Fees AS % of Expenses Under $500 Million $257,992,525 1,551.00 2.46 $544,484 $287,208 0.2648% 0.1264% $500 Million - $1 Billion $922,392,000 1,996.00 4.00 $353,979 $500,000 0.0384% 0.0542% $1 Billion - $5 Billion $2,128,565,500 14,344.00 5.00 $1,109,964 $600,000 0.0665% 0.0573% $5 Billion - $15 Billion $15 Billion - $25 Billion Over $25 Billion Expenses Page 14
Summary Information(Universe) Revenues Revenues Total Employees Audit Staff Count Internal Audit Costs Total External Audit Fees IA Costs AS % of Revenues EA Fees AS % of Revenues Under $500 Million $253,991,343 1,136.00 6.50 $897,878 $384,155 0.4802% 0.2047% $500 Million - $1 Billion $756,414,645 2,379.00 11.19 $1,604,150 $993,460 0.2191% 0.155% $1 Billion - $5 Billion $2,433,081,368 6,622.00 13.73 $2,000,834 $1,862,877 0.0924% 0.081% $5 Billion - $15 Billion $8,242,660,398 23,773.00 23.56 $3,798,189 $3,170,112 0.0468% 0.038% $15 Billion - $25 Billion $18,901,697,736 63,481.00 65.00 $10,686,439 $5,295,362 0.0557% 0.0283% Over $25 Billion $64,085,203,365 103,915.00 150.98 $23,978,729 $15,238,913 0.0419% 0.0269% Assets Assets Total Employees Audit Staff Count Internal Audit Costs Total External Audit Fees IA Costs AS % of Assets EA Fees AS % of Assets Under $500 Million $263,813,129 1,511.00 5.30 $773,614 $401,799 1.4858% 1.0558% $500 Million - $1 Billion $789,932,888 2,593.00 4.76 $750,641 $882,841 0.0969% 0.1222% $1 Billion - $5 Billion $2,823,013,038 6,402.00 8.68 $1,279,195 $1,135,075 0.0514% 0.046% $5 Billion - $15 Billion $8,585,556,130 21,246.00 16.74 $2,464,798 $2,388,484 0.0308% 0.0302% $15 Billion - $25 Billion $19,111,714,833 36,204.00 22.34 $3,720,241 $4,056,986 0.0193% 0.0207% Over $25 Billion $288,323,400,046 40,072.00 78.60 $12,434,859 $7,427,906 0.0099% 0.0068% Expenses Expenses Total Employees Audit Staff Count Internal Audit Costs Total External Audit Fees IA Costs AS % of Expenses EA Fees AS % of Expenses Under $500 Million $232,226,687 1,403.00 8.24 $1,249,415 $561,641 0.6484% 0.2443% $500 Million - $1 Billion $761,762,754 2,735.00 13.46 $2,127,415 $1,081,327 0.2874% 0.1565% $1 Billion - $5 Billion $2,549,703,699 10,136.00 14.68 $2,166,050 $2,085,466 0.1007% 0.0896% $5 Billion - $15 Billion $8,333,181,230 28,629.00 35.00 $5,557,691 $3,875,934 0.0631% 0.0478% $15 Billion - $25 Billion $18,352,084,463 71,452.00 66.92 $9,788,562 $5,204,410 0.0517% 0.0291% Over $25 Billion $60,780,502,425 116,023.00 158.22 $25,582,953 $16,720,430 0.0512% 0.0319% Page 15
Revenues and Assets Per Auditor Page 16
Expenses and Employees Per Auditor Page 17
Section 3: Internal Audit Costs
Salary Bonuses Employee Benefits Travel Training Purchased Services Allocated or Overhead Costs Outsourced Project Work Your Organization $230,000 $20,000 $60,000 $10,000 $5,000 $0 $0 $0 $325,000 Services $1,969,440 $191,039 $481,036 $232,442 $31,710 $367,160 $131,551 $87,070 $3,483,708 Services $1B to $5B Services & Staff Size 1 to 5 Summary of Audit Costs $1,445,869 $162,280 $223,529 $121,947 $16,622 $218,705 $83,760 $80,118 $2,337,601 $330,167 $39,293 $70,479 $42,324 $5,211 $124,640 $9,551 $16,866 $638,530 Universe $2,562,240 $305,248 $676,017 $185,413 $41,095 $351,602 $255,575 $125,709 $4,487,422 Total Page 19
Salary and Bonuses as % of Total Audit Costs (Excl. Benefits and Allocated Costs) Page 20
Salary and Bonuses as % of Total Audit Costs (Incl. Benefits and Allocated Costs) Page 21
Benefits as a Percentage of Total Audit Costs Page 22
Travel and Training as % of Total Audit Costs (Excl. Benefits and Allocated Costs) Page 23
Travel and Training as % of Total Audit Costs (Incl. Benefits and Allocated Costs) Page 24
Total Costs per Auditor Page 25
Total Costs per Auditor (with and without Travel) Page 26
Travel and Training Costs per Auditor Page 27
Section 4: Internal Audit Staffing
Internal Audit Staff Profile Chief Audit Executive Directors / Managers Seniors / Supervisors Staff Professional Staff Total Administration / Clerical Your Organization 1 1 1 1 4 0 4 Services 1 5 6 9 21 1 23 Services $1B to $5B 1 3 3 6 13 0 13 Services & Staff Size 1 to 5 In-House Staff Profile Total Positions 1 1 1 1 3 0 3 Universe 1 5 10 12 27 1 29 Sourced Staff Profile Chief Audit Executive Directors / Managers Seniors / Supervisors Staff Professional Staff Total Administration / Clerical Your Organization 0 0 0 0 0 0 0 Services 0 0 0 1 1 0 1 Services $1B to $5B 0 0 0 0 1 0 1 Services & Staff Size 1 0 0 0 0 0 0 0 to 5 Universe 0 0 0 1 1 0 1 Total Positions Chief Audit Executive Directors / Managers Seniors / Supervisors Staff Professional Staff Total Administration / Clerical Your Organization 1 1 1 1 4 0 4 Services 1 5 7 10 23 1 24 Services $1B to $5B 1 3 3 6 14 0 14 Services & Staff Size 1 to 5 Overall Staff Profile Total Positions 1 1 1 1 3 0 3 Universe 1 5 10 13 29 1 30 Page 29
Change in Internal Audit Staff Size Page 30
General Internal Auditors Information technology (IT) auditors Fraud auditors Environment, Health, and Safety internal auditors Other compliance auditors Your Organization 2 1 1 0 0 0 4 Services 14.06 4.42 0.92 0.1 1.71 1.41 22.62 Services $1B to $5B 7.86 4.07 0.38 0.32 0.41 0.45 13.5 Services & Staff Size 1 to 5 Summary of Professional Audit Staff by Function 2.62 0.3 0.1 0 0.1 0 3.12 Universe 21.12 4.85 0.91 0.18 0.79 0.88 28.73 Other Total Page 31
General and IT Auditors as a Percentage of Total Auditors Page 32
Fraud and ESH Auditors as a Percentage of Total Auditors Page 33
Other Compliance Auditors as a Percentage of Total Page 34
Presence of Dedicated IT Audit Group Page 35
Level of Education Sought for Auditors Page 36
Level of Education Sought for Auditors Continued Page 37
Internal Audit Experience of Auditors Page 38
Relevant Non-Internal Audit Experience of Auditors Page 39
Industry Experience of Auditors Page 40
Staff with Professional Designation as Percent of Total Staff Page 41
Percent of Staff with Professional Designations Page 42
Professional Designation Mix Internal Auditing (such as CIA, MIIA, PIIA) Information Systems Auditing (such as CISA, QiCA, CISM) Your Organization 100% 25% Government Auditing, Finance (such as CIPFA, CGAP, CGFM) Control Self-Assessment (such as CCSA) Public Accounting, Chartered Accountancy (such as CA, CPA, ACCA, ACA) Management, General Accounting (such as CMA, CIMA, CGA) Services 29% 27% 2% 67% 47% 16% Services $1B to $5B 25% 34% 50% 19% Services & Staff Size 1 to 5 57% 39% 67% 53% 40% Universe 33% 26% 18% 17% 41% 17% Your Organization Accounting - technician level (such as CAT, AAT) Fraud Examination (such as CFE) Financial Services Auditing (such as CFSA, CIDA, CBA) Fellowship (such as FCA, FCCA, FCMA) Certified Financial Analyst (such as CFA) Certification in Risk Management Assurance (CRMA) Other Certifications Services 6% 16% 15% 6% 15% 22% Services $1B to $5B 6% 14% 6% 13% 26% Services & Staff Size 1 to 5 38% 33% 35% 33% Universe 9% 19% 14% 15% 7% 19% 27% Page 43
CIA Designation Page 44
Internal Audit Hiring Practices Page 45
Staff Turnover Page 46
Training Hours Page 47
Section 5: Sourcing
Sourced Staff Profile Chief Audit Executive Directors / Managers Seniors / Supervisors Staff Professional Staff Total Administration / Clerical Your Organization 0 0 0 0 0 0 0 Total Positions Services 0.01 0.18 0.3 0.68 1.16 0.01 1.18 Services $1B to $5B 0 0.14 0.35 0.42 0.9 0 0.9 Services & Staff Size 1 to 5 Sourced Staff Profile 0.03 0.15 0.05 0.19 0.42 0.05 0.47 Universe 0.01 0.2 0.43 0.82 1.45 0.01 1.46 Page 49
Costs of Purchased Services Page 50
Level of Sourcing Page 51
Your Organization General internal auditing What Internal Audit Activities are Sourced Information technology (IT) auditing Subject matter expertise Fraud auditing Other None Services 47% 47% 32% 6% 15% 29% Services $1B to $5B 64% 45% 55% 27% 36% Services & Staff Size 1 to 5 50% 40% 20% 30% Universe 38% 49% 42% 7% 11% 26% Page 52
Percentage of Audit Areas Sourced Page 53
Sourced Hours and Fees Page 54
Fees For Purchased Services Page 55
Future Reliance on Sourcing Page 56
Section 6: External Audit
External Audit Page 58
Total IA Hours Spent on External Audit Page 59
External Audit Fees as Percentage of Total Revenues, Assets, and Expenses Page 60
Section 7: Internal Audit Oversight
Section 7.1: Internal Audit Oversight Chief Audit Executive
CAE Administrative Reporting Line Page 63
CAE Functional Reporting Line Page 64
Title of Chief Audit Executive Page 65
Your Organization General internal auditing IT auditing Fraud auditing Forensic investigations 100% 100% 100% Environment, Health, and Safety Compliance Risk management Ethics and business conduct Corporate social responsibility (sustainability) Services 100% 94% 68% 44% 15% 71% 56% 35% 15% 12% Services $1B to $5B Services & Staff Size 1 to 5 Responsibilities of Chief Audit Executive 100% 100% 73% 45% 18% 55% 36% 27% 100% 80% 50% 20% 60% 50% 30% Universe 99% 94% 73% 31% 14% 58% 48% 42% 17% 20% Other Page 66
Section 7.2: Internal Audit Oversight Audit Committee
Audit Committee Page 68
Audit Committee Chair Page 69
Audit Committee Meetings Page 70
Private Sessions with Audit Committee Page 71
Presence of Audit Committee Charter Page 72
Responsibilities of Audit Committee Selects the external auditor and reviews the audit fees and the engagement letter Reviews the external auditor's overall audit plan Reviews preliminary annual and interim financial statements Your Organization 100% 100% 100% Reviews results of engagements performed by external auditors, including management letter Approves the charter of the internal audit activity Reassesses and approves a new internal audit activity charter annually Services 94% 91% 88% 91% 88% 68% Services $1B to $5B 91% 91% 91% 82% 91% 73% Services & Staff Size 1 to 5 90% 80% 70% 90% 70% 30% Universe 86% 91% 89% 92% 91% 71% Your Organization Reviews and approves the internal audit activity's plans and resource requirements Directly communicates with the chief audit executive who regularly attends and participates in meetings Reviews evaluations of risk management control and governance processes as reported by the internal auditors Ensures that engagement results are given due consideration and receive distributions of communications Reviews policies on unethical and illegal procedures Reviews financial statements to be transmitted to regulatory agencies Services 94% 94% 88% 71% 53% 76% Services $1B to $5B 91% 91% 91% 64% 64% 73% Services & Staff Size 1 to 5 90% 90% 80% 70% 50% 50% Universe 92% 93% 92% 71% 63% 70% Your Organization Participates in the selection of accounting policies Reviews the impact of new or proposed legislation or regulations Reviews the organization's insurance program Considers evaluations of the effectiveness and efficiency of information systems Review performance of Chief Audit Executive Reviews proposed compensation Services 29% 56% 29% 68% 65% 29% Services $1B to $5B 36% 73% 36% 91% 73% 45% Services & Staff Size 1 to 5 20% 40% 30% 60% 40% 40% Universe 33% 60% 28% 64% 80% 35% Page 73
Information Shared with Audit Committee Your Organization Financial and resource budgets Financial variance analysis (actual versus budgeted expenses) Productivity measures Benchmark comparisons versus other companies Organizational structure Coordination of internal and external audit plans Services 82% 42% 48% 61% 82% 76% Services $1B to $5B 91% 55% 36% 55% 82% 73% Services & Staff Size 1 to 5 67% 11% 33% 33% 67% 67% Universe 78% 46% 62% 54% 79% 75% Risk assessment system Overall assessment of the corporate control environment Coverage of key organizational risks Fraud risks Assessment of fraud control environment Your Organization Services 64% 73% 76% 73% 48% Services $1B to $5B 45% 64% 64% 73% 55% Services & Staff Size 1 to 5 56% 56% 56% 67% 33% Universe 69% 72% 78% 61% 49% Your Organization Overall audit plan Percentage of audit plan completed Status of audits performed, outstanding issues, etc. ("Audit Dashboard") Results of monitoring programs concerning compliance with laws, codes of conduct, and ethics Significant findings from engagements Services 97% 88% 94% 70% 97% Services $1B to $5B 91% 82% 82% 73% 91% Services & Staff Size 1 to 5 100% 78% 89% 33% 100% Universe 99% 91% 96% 62% 98% Page 74
Professional Development of Audit Committee Provided by Internal Audit Page 75
Evaluations of Audit Committee and Charter Page 76
Financial Business management Your Organization 100% 100% Expertise Present on Audit Committee Legal Industry-specific knowledge Operational Information technology Fraud/forensics Internal/external audit Services 91% 91% 35% 76% 82% 38% 18% 47% Services $1B to $5B 91% 91% 36% 73% 91% 45% 18% 64% Services & Staff Size 1 to 5 90% 80% 40% 70% 70% 10% 10% 20% Universe 95% 91% 33% 77% 69% 32% 11% 53% Page 77
Section 8: Risk Assessment and Planning
Section 8.1: Audit Planning
Audit Performance Page 80
Percent of Audits Planned Actually Performed Page 81
Number of Unplanned Audits Page 82
Audits Per Auditor Page 83
Allocation of Audit Plan Page 84
Percent of Total Hours for Unallocated Time Page 85
Percent of Management Requests Completed Page 86
Type of Audit Plan Page 87
Years Covered By Audit Plan Page 88
Section 8.2: Risk Assessment
Presence of Formal Risk Assessment Process for Internal Audit Page 90
Frequency of Internal Audit Risk Assessment Page 91
Factors Influencing Risk Assessment Your Organization Degree of manual intervention / degree of automation Confidence in management Extent of major change (reorganization, new product line, etc.) Sensitivity (e.g., image, public relations, etc.) Employee turnover Services 71% 68% 88% 74% 62% Services $1B to $5B 55% 55% 73% 64% 45% Services & Staff Size 1 to 5 50% 70% 80% 80% 40% Universe 69% 62% 92% 69% 65% Fraud significance / potential Inherent risk Environmental factors Competitive pressures Complexity of activities Your Organization Services 82% 82% 56% 44% 79% Services $1B to $5B 73% 82% 36% 45% 73% Services & Staff Size 1 to 5 60% 70% 30% 20% 60% Universe 85% 85% 49% 37% 85% Control environment Time since last audit Continuous auditing - risk and controls assessments Degree of financial materiality Velocity Aggregation of risks Volume of transactions Your Organization Services 82% 85% 35% 91% 26% 68% 62% Services $1B to $5B 82% 82% 36% 82% 18% 64% 55% Services & Staff Size 1 to 5 70% 90% 20% 80% 10% 40% 50% Universe 89% 84% 34% 90% 29% 59% 67% Page 92
Presence of Engagement Level Risk Assessments Page 93
Engagement Level Risk Assessments Page 94
Section 9: Audit Implementation / Life Cycles / Reporting
Your Organization Assurance engagements Consulting engagements Fraud investigations Management requests Follow-up audits and activities External audit assistance Chargeable time -- other Non-chargeable time -- training 5% 5% 10% 10% 10% 10% 50% Non-chargeable time -- other Services 53% 5% 3% 5% 4% 5% 5% 3% 6% 10% Services $1B to $5B Services & Staff Size 1 to 5 Allocation of Audit Staff Time 53% 3% 4% 5% 4% 8% 3% 3% 5% 11% 59% 5% 4% 5% 2% 6% 3% 3% 7% 8% Universe 52% 5% 3% 5% 5% 4% 6% 4% 7% 10% Absences Page 96
Audit Life Cycle Page 97
Audit Life Cycle - Reporting Page 98
Tools and Techniques Utilized on Audits Analytical review Balanced scorecard or similar framework Benchmarking Computer-assisted audit techniques (CAAT) Your Organization 100% 100% Continuous auditing Services 85% 15% 53% 56% 21% Services $1B to $5B 73% 45% 55% 27% Services & Staff Size 1 to 5 90% 20% 60% 60% Universe 87% 17% 52% 66% 32% Control self-assessment Data mining Flowchart software Process modeling software Statistical sampling Your Organization Services 26% 59% 59% 9% 50% Services $1B to $5B 9% 82% 64% 45% Services & Staff Size 1 to 5 10% 50% 60% 20% Universe 35% 58% 59% 5% 57% Quality assessment review tools Total quality management techniques Six sigma methodologies Electronic workpaper software Your Organization Services 24% 9% 9% 56% Services $1B to $5B 18% 9% 9% 64% Services & Staff Size 1 to 5 10% 50% Universe 30% 8% 11% 67% Page 99
Highlight repeat findings in audit reports Rate observations and findings Audit Engagement Reporting Rank observations and findings based on likelihood and significance Include management action plans Your Organization 100% 100% Provide an overall "score" for the audit Provide an overall opinion on the audit Include positive findings Services 74% 68% 41% 94% 53% 68% 47% Services $1B to $5B 73% 82% 45% 91% 64% 82% 64% Services & Staff Size 1 to 5 50% 40% 20% 80% 30% 50% 30% Universe 79% 81% 55% 95% 41% 77% 58% Page 100
Section 9.1: Observations and Follow-Up Audits
Audit Follow-Up Activities Page 102
Days Outstanding for Open Items Page 103
Opinion Activities Page 104
Section 10: Performance Management
Presence of Formal Quality Assurance and Improvement Program Page 106
Section 10.1: Internal Quality Assessments
Frequency of Internal Quality Assessments Ongoing Reviews Periodic Reviews Your Organization 100% Services 54% 46% Services $1B to $5B 71% 29% Services & Staff Size 1 to 5 100% Universe 57% 43% Page 108
Internal Quality Assessments Engagement supervision Checklists Project budgets Timekeeping systems Your Organization 100% 100% 100% Tools Utilized for Internal Assessments Audit plan completion and summary reports Cost recoveries Interviews and surveys Benchmarking Services 84% 88% 68% 68% 96% 12% 68% 76% Services $1B to $5B 100% 100% 71% 71% 100% 14% 86% 86% Services & Staff Size 1 to 5 83% 67% 50% 50% 83% 67% 50% Universe 91% 89% 64% 64% 89% 14% 58% 64% Results of Internal Assessments Shared With Senior management Audit committee Board of directors External auditors Other appropriate persons outside the activity Your Organization 100% 100% 100% No one Services 72% 84% 20% 56% 24% 8% Services $1B to $5B 71% 86% 14% 57% 57% 14% Services & Staff Size 1 to 5 83% 83% 17% 67% 50% Universe 76% 87% 24% 40% 23% 8% Page 109
Section 10.2: External Quality Assessments
Completion of External Quality Assessment Page 111
Obstacles of External Quality Assessment Page 112
Performance of External Quality Assessments Page 113
Results of External Quality Assessment Shared With Senior management Audit committee Board of Directors External auditors Other appropriate persons outside the activity Your Organization 100% 100% No one Services 90% 95% 29% 71% 38% Services $1B to $5B 86% 86% 14% 86% 57% Services & Staff Size 1 to 5 100% 100% 50% 83% 33% Universe 91% 95% 34% 62% 32% Page 114
Section 11: Subscribers By Industry Group
Participants by Industry Group
Participants by Industry Group
Participants by Industry Group
Participants by Industry Group
Participants by Industry Group
Participants by Industry Group
Participants by Industry Group
Participants by Industry Group
Participants by Industry Group
Participants by Industry Group
Participants by Industry Group
Participants by Industry Group
Participants by Industry Group
Participants by Industry Group
Participants by Industry Group
Participants by Industry Group
Participants by Industry Group
Participants by Industry Group
Participants by Industry Group
Appendix A - Networking Directory
Appendix A - Networking Directory
Appendix A - Networking Directory
Appendix A - Networking Directory
Appendix A - Networking Directory
Appendix A - Networking Directory
Appendix A - Networking Directory
Appendix A - Networking Directory