Tracking internal audit metrics enables an internal audit team to communicate their value to the organization. As organizations continue to seek ways to cut costs, it’s crucial for the internal audit to prove their value. Clearly defining goals and tracking meaningful metrics can provide valuable evidence for internal audit’s activities and assist in the overall planning process.
Establishing metrics and KPIs also allows internal audit to ensure high standards when it comes to planning, fieldwork and reporting activities. Additionally, internal audit will have the ability to integrate and align the audit strategy with organization’s overall mission and objectives.
Keep in Mind When Tracking Metrics in an Audit
Planning: These metrics will measure factors that impact the work of the internal audit during the audit planning process.
Budget/Fieldwork: These metrics are related to output relative to resources applied and the measurement of efficiency of overall fieldwork.
Reporting: These metrics should measure the impact and effectiveness of the internal audit fieldwork.
It’s important to remember when it comes to the internal audit function, there is no such thing as a “one size fits all” approach. It is recommended that organizations develop their own bespoke checklist, establishing metrics and KPIs that are aligned with audit activity and the strategy of the organization.