Auditing Skills: Internal Audit: Measuring Performance

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Course Overview

Whether an internal audit department exists by statute or by request it is an overhead to the enterprise. Service departments, such as internal audit, should be able to show that they are effectively performing and adding some value to the company. The fact that internal audit is sometimes viewed as a department that constrains the company from meeting its objectives makes it doubly important that internal audit is able to show its contribution to the business. Additionally, internal audit effectiveness is usually commented on by the company's external auditors without disclosure of the measurement mechanism being used. If internal audit has its own measurement framework in place and frequently reports its achievements to senior management, then it is in a better position to justify the work it has done and its contribution to the business.

Audience

The workshop will be of benefit to internal audit managers, audit team leaders, chief executive officers, chief financial officers and audit committee members

Course Outline

MEASUREMENT FRAMEWORKS

• What should we measure?
• What can we measure?
• Does it add value?
• Lead v lag frameworks
• Individual, group and department frameworks

SELECTING THE METRICS

• Input and output measures
• Effectiveness metrics
• Efficiency metrics
• Economic metrics
• Quality metrics
• 'Productive' v 'non-productive' time
• Use of surveys
• Individual, group and department measures

THE BALANCED SCORECARD

• Business balanced scorecard
• Internal audit balanced scorecard
• Corporate contribution
• Client perspective
• Internal performance perspective
• Monitoring and enhancement perspective

REPORTING

• To whom?
• Data collection
• Reporting frequency
• Reporting formats

Auditing Skills: Internal Audit: Measuring Performance / CM027270