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Presentation to the
State Agency Internal Audit Forum
May 18, 2012
Performance Measures for Internal Audit
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IALDP
Project Objectives
Performance Measures Defined
Four Categories of Performance Measures
Results of Survey
Best Practices
Agenda
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Determine what performance measures are used by Internal Audit functions and identify best practices
Project Objective
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Performance Measure
A quantifiable indicator of entity achievement that includes the specific types:
Outcome
Output
Efficiency
Explanatory/Input
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Institute of Internal Auditors Austin Chapter Research Committee
December 2011
76 Responses
Six Countries
Survey
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Respondents by Industry
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Performance
Cost / Efficiency
Customer Satisfaction
Employee Development
Four Categories of Performance Measures
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Included in this category were:
Percentage of Audit Plan projects completed;
Results of external quality assurance review;
Annual performance appraisal of the Chief Audit Executive;
Number of recommendations implemented; and
Planned for the future.
Performance
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Included in this category were:
Percentage of overall time spent on assurance and consulting services; and
Audit report released within required timeline .
Cost / Efficiency
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Included in this category were:
Results of client satisfaction surveys;
Responsiveness to Board and Audit Committee requests; and
Leadership in providing information on governance, risk, and controls.
Customer Satisfaction
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Included in this category were:
Percentage of audit staff with professional certifications; and
Percentage of audit staff meeting continuing professional education requirements
Employee Development
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Respondents With Metrics in Multiple Categories
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Performance Metrics
-
5
10
15
20
25
30
College or
University
Federal
government
For profit Local
government
Non-profit Other State
government
Undefined
7
4
8 10
3 5
22
1
-
-
3 -
1
1
4
-
Respondents with "Performance" Metrics
No Metrics
Has Metric(s)
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Cost/Efficiency Metrics
-
5
10
15
20
25
30
College or
University
Federal
government
For profit Local
government
Non-profit Other State
government
Undefined
6 4 3
7
3 3
17
1
1
-
8
3
1 3
9
-
Respondents with "Cost/Efficiency" Metrics
No Metrics
Has Metric(s)
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Customer Satisfaction Metrics
0
5
10
15
20
25
30
College or
University
Federal
government
For profit Local
government
Non-profit Other State
government
Undefined
7
3
7 8
2 4
19
0
1
4 2
2
2
7
1
Respondents with "Customer Service" Metrics
No Metrics
Has Metric(s)
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Employee Development Metrics
-
5
10
15
20
25
30
College or
University
Federal
government
For profit Local
government
Non-profit Other State
government
Undefined
7
3 5
8
2 2
15
1
-
1
6 2
2 4
11
-
Respondents with "Employee Development" Metrics
No Metrics
Has Metric(s)
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Measure performance
Measure different categories
Measure what matters
Monitor progress
Best Practices
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Engage the workforce
Maintain flexibility
Assess the measures periodically
Report the measures
Keep it simple
Best Practices (cont.)
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Different shops use different measures
Only you can determine what performance measures are best for your audit shop
One size does not fit all
Conclusion
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Questions?
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Betsy Schwing – [email protected] Scott Mattingly – [email protected] Mike Hardison - [email protected] Eleazar Garcia – [email protected]