Higher performance by design: A blueprint for change
In today’s risky and complex business landscape, it's more important than ever that all parts of a business agree on what they want and how they're going to get it. Yet many internal audit functions are struggling to align with stakeholder expectations and be seen as valuable. Internal audit’s ability to build the right capabilities and deliver on expectations continues to be challenged.
In our 10th annual State of the Internal Audit Profession Study we surveyed more than 1,900 chief audit executives (CAEs), internal audit managers, members of senior management, and board members from around the world. This survey, combined with one-on-one interviews with 125 stakeholders, told us that when given the adequate resources, internal audit can find opportunities to increase its value and its contribution to the business. But despite this optimism, the results also revealed that:
More than half (55%) of senior management don't feel that internal audit adds significant value to their organization
Nearly 30% of board members believe internal audit adds less than significant value
On average, only 49% of senior management and 64% of board members believe internal audit is performing well at delivering on expectations
While many reported that their internal audit functions had made progress during the past 12 months, performance issues identified in prior years’ research still continue. It appears that the progress hasn't been enough to keep pace with the changing business environment.
So what can be done? How can internal audit build the right capabilities to add the maximum value to the organization? In this year’s study, we take a deep dive into these alignment and performance issues to reveal:
What these challenges mean for your business
What actions can be taken
How you can craft a blueprint for an aligned, value-enhancing internal audit function
The characteristics of internal audit and stakeholders within high-performing operations