This plan focuses on enhancing the performance of internal auditors by tracking key metrics such as Audit Completion Rate and Number of Findings per Audit. For instance, maintaining a 90%-95% completion rate ensures timely execution, while monitoring findings highlights areas needing attention. By aligning with benchmarks, these metrics guide resource allocation and process improvements. Regular evaluation fosters transparency and efficiency, critical for maintaining audit credibility.
Additionally, the Implementation Rate of Audit Recommendations is crucial for reinforcing audit value by ensuring timely actions on findings. Comparing internal and external audit results with minimal discrepancies, below 5%, aligns internal processes with external standards, reducing potential conflicts. Audit Cost Efficiency, by maintaining costs within $5,000-$10,000 per audit, ensures that audits provide value without excessive expenditure, optimizing budget use.
Top 5 metrics for Internal Auditor Performance
1. Audit Completion Rate
The percentage of planned audits completed in a given period
What good looks like for this metric: 90%-95% completion rate
How to improve this metric:- Set clear priorities for audits
- Allocate resources effectively
- Enhance time management skills
- Streamline audit processes
- Regularly review audit plans
2. Number of Findings per Audit
Average number of findings identified during each audit
What good looks like for this metric: 2-5 findings per audit
How to improve this metric:- Improve risk assessment techniques
- Incorporate data analytics in audits
- Enhance auditor training programmes
- Focus on high-risk areas
- Use checklists to standardise audits
3. Implementation Rate of Audit Recommendations
Percentage of audit recommendations implemented within the agreed timelines
What good looks like for this metric: 80% implementation within 90 days
How to improve this metric:- Ensure recommendations are actionable
- Engage with auditees to understand constraints
- Follow up regularly on recommendations
- Provide practical solutions
- Prioritise high-impact recommendations
4. External Audit Discrepancy
Comparison between internal audit findings and external audit findings
What good looks like for this metric: Less than 5% discrepancy
How to improve this metric:- Align internal audit focus with external audits
- Improve coordination with external auditors
- Regularly update auditing standards
- Review and improve audit documentation
- Provide sufficient training to internal auditors
5. Audit Cost Efficiency
Cost of auditing per audit presented as a value component to business value
What good looks like for this metric: $5,000-$10,000 per audit
How to improve this metric:- Implement cost-saving technologies
- Opt for risk-based audit planning
- Streamline the audit process
- Utilise a hybrid auditing team (internal and external)
- Automate repetitive tasks where possible
How to track Internal Auditor Performance metrics
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your metrics.
