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    Balance Scorecard Internal Audit1

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    hossainmz
    The document discusses approaches to measuring internal audit performance. It describes the traditional approach of measuring things like audit plan delivery, timing of reports, and financial indicators, as well as the balanced scorecard approach which considers stakeholder, customer, internal process, and innovation perspectives. The document also provides examples of current internal audit performance measures used at the organization, including indicators related to customer results, efficiency, effectiveness, and people. It concludes by suggesting next steps of agreeing on a standard approach and key areas for setting performance measures.

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    Balance Scorecard Internal Audit1

    Uploaded by

    hossainmz
    81 views10 pages
    The document discusses approaches to measuring internal audit performance. It describes the traditional approach of measuring things like audit plan delivery, timing of reports, and financial indicators, as well as the balanced scorecard approach which considers stakeholder, customer, internal process, and innovation perspectives. The document also provides examples of current internal audit performance measures used at the organization, including indicators related to customer results, efficiency, effectiveness, and people. It concludes by suggesting next steps of agreeing on a standard approach and key areas for setting performance measures.

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    Balance Scorecard Internal Audit1

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    The document discusses approaches to measuring internal audit performance. It describes the traditional approach of measuring things like audit plan delivery, timing of reports, and financial indicators, as well as the balanced scorecard approach which considers stakeholder, customer, internal process, and innovation perspectives. The document also provides examples of current internal audit performance measures used at the organization, including indicators related to customer results, efficiency, effectiveness, and people. It concludes by suggesting next steps of agreeing on a standard approach and key areas for setting performance measures.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    81 views10 pages

    Balance Scorecard Internal Audit1

    Uploaded by

    hossainmz
    The document discusses approaches to measuring internal audit performance. It describes the traditional approach of measuring things like audit plan delivery, timing of reports, and financial indicators, as well as the balanced scorecard approach which considers stakeholder, customer, internal process, and innovation perspectives. The document also provides examples of current internal audit performance measures used at the organization, including indicators related to customer results, efficiency, effectiveness, and people. It concludes by suggesting next steps of agreeing on a standard approach and key areas for setting performance measures.

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    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 10

    MEASURING SUCCESS

    Internal Audit Performance


    Measures

    Internal Audit Performance


    Measures

    Why should we measure performance


    Differing Approaches
    What we are currently doing
    Next Steps

    Why
    Internal Audit is like any other business
    unit
    Increasing requirement to report regularly
    against agreed performance measures

    Differing Approaches
    Traditional Approach
    Balanced Scorecard Approach

    Traditional Approach
    Typical Measures
    Audit Plan Delivery
    Timing of Draft and
    Final Reports
    Quality of Service
    Financial Indicators

    Pros

    Cons

    Measuring
    the same
    things
    Peer
    comparison
    easier

    Records the
    past
    Doesnt
    consider
    strategic
    considerations

    However, some unanswered questions:


    How well are stakeholder expectations being met by Internal Audit
    How are the performance objectives of staff linked to those of the overall
    function?

    Balanced Scorecard Approach

    Stakeholder
    Customer
    Internal Process
    Innovation, Learning
    and Growth

    Vision and Strategy

    Balanced Scorecard for Internal Auditing


    Board/Audit Committee
    OBJECTIVES

    Expectations

    Perspective on IA Roles

    List here.

    Perspective on IA Roles

    MEASURES

    Satisfaction Surveys

    List here.

    Satisfaction Surveys

    Risk Concerns

    Requests

    CAE/AC Private Meetings

    Complaints

    CORPORATE
    STRATEGY

    Management/Audit Customers
    OBJECTIVES
    List here.

    MEASURES

    Internal Audit Processes


    OBJECTIVES

    List here.

    List here.

    MEASURES
    List here.

    INTERNAL AUDIT
    STRATEGY

    Innovation/Capabilities
    Experience
    Education

    OBJECTIVES
    List here.

    MEASURES
    List here

    Importance Levels
    Improvements
    Findings

    Training

    Repeat Findings

    Certification

    Savings

    Reporting Relationships

    Quality Assessment

    Current Reporting - Covalent


    Example Measures:

    Status

    Customer Results
    Efficiency
    Effectiveness
    People

    Performance Indicator

    Description

    Current
    Target

    Current
    Value

    Last
    Update

    IA001_6a.1 Timeliness of
    Audit Report..

    % of respondents who agreed


    that the audit report was
    produced timeously

    100%

    100%

    Q4
    2010/11

    IA002_6a.2 Audit Report


    Delivered..

    % of respondents who agreed


    that the audit remit was
    addressed by the audit
    report .

    100%

    93%

    Q4
    2010/11

    IA003_6a.3 Kept Informed of


    Audit Progress..

    % of respondents who agreed


    that Internal Audit kept them
    informed of progress.

    100%

    93%

    Q4
    2010/11

    Current Reporting - Word


    No

    Indicator/Description

    Measurement

    09/10

    10-11

    Audit Plan Delivery


    Actual number of audits delivered against
    planned number of audits on the audit
    plan.

    actual plan completion v


    planned completion

    115%

    100%

    Reporting
    Issue of draft report after completion of
    fieldwork.

    % of draft reports issued


    within 15 working days of
    fieldwork completion.

    100%

    100%

    Reporting
    Issue of final report after management
    response to draft received.

    % of final reports issued


    within 5 working days of
    management response
    being received.

    100%

    100%

    Quality
    Customer feedback survey responses with
    either a satisfied or very satisfied rating.

    Target 80% of satisfied or


    very satisfied customer
    feedback responses

    96%

    96%

    Quality
    Number of actions implemented by due
    date.

    Target 80% of actions


    completed by management
    when due.

    85%

    61%

    Quality
    Number of audits completed within
    planned time budget.

    Target 75% of total audit


    assignments to be
    completed within planned
    time budget.

    91%

    85%

    Next Steps
    Agreement on approach and standard
    areas for setting performance measures
    Is there a need for Working Group?

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