The IIA Research Foundation has recently released a global benchmark report that examines the maturity of internal audit departments. More than 2,500 Chief Audit Executives (CAE) from around the world provided their perspective on this subject and the importance of increasing the sophistication of internal audit departments.

Benchmarking the maturity of internal audit departments helps organizations build strategies to develop these departments and reach desired audit-quality levels. To help CAEs, the report discusses the following key indicators:

1. Alignment of internal audit with the organization’s strategic plan. A mature department can adapt internal audit planning and priorities to changes in the strategic objectives of the organization.
2. Risk assessment. A mature organization can perform a comprehensive risk assessment that includes looking forward, understanding the business and identifying emerging risks where the effectiveness of controls becomes critical to success.
3. Internal audit competence. A mature internal audit team consists of individuals with varying backgrounds that include traditional auditing skills and industry knowledge. They are also continuously trained and encouraged to develop skills such as critical thinking and leadership.
4. Internal audit planning. A dynamic business environment means that the internal audit team must adapt to new and evolving risks. Mature departments continuously update their risk assessments to keep pace with the organization.
5. Audit procedures. Mature departments are documenting and continuously monitoring their audit procedures.
6. Use of technology. An advanced internal audit department reduces their reliance on manual systems and instead uses tools like data mining, data analytics and continuous or real-time auditing in their audit activities.
7. Quality assurance and improvement program (QAIP). Mature departments implement a robust performance management system that includes defining and monitoring key performance indicators (KPIs), regular benchmarking, and surveying stakeholders to measure satisfaction.

Author : Anu Sood - Director of Product and Corporate Marketing at CaseWare Analytics and is responsible for the company’s global marketing strategy.

Date of Input: 21/07/2017 | Updated: 07/04/2023 | muhammad.isam