KPIs For Internal Audit Department

Tips When Determining KPIs for Internal Audit Department

Internal audit KPIs: It is always a headache when you are planning to perform KPIs for internal audit department. When you measure your performance of the organizational process, this should be like second nature for you. So to help you here are some tips to use when you are determining the KPIs for internal audit.

 

KPIs for internal audit department

 

Don’t Just Track Your Hours

Coming out of the accounting world, you have probably been tracking your company’s audit hours.

That isn’t the only thing you need to do to also remember to report the audit hours in a ratio of the staff utilization.

This will bring about a great deal of information and is calculated like so:

Divide your annual hours by the total annual work hours. This will help to inform you of the percentage of audits.

Check Your Quality

When you forget to monitor your quality, then you don’t have the ability to monitor the situation.

So, how do you determine your quality?

The easiest way for you to determine what the number of times that management has asked for the internal audit’s services.

What are the requests that you are getting from your management team? Define what the internal audit brings in the sense of value. That way you can monitor and measure quality.

Test Your Skills

Start tracking your team’s skills, look at the number of years for audit experience, and the yearly number of hours in training for each auditor, the amount of certifications that your staff holds, and the tenure for each of your members have with your company.

Track out your staff that have been successful, that are trained, and can complete all the operations. This will help to showcase the talent of the best and brightest in your management team.

Show Me the Money

Money is  one of the most important steps in any business. This helps to know your savings, cost containment, and expense reduction. It is great to help focus your entire audit’s lifecycle.

Look into the advanced dashboards that help you to be able to track the progress of your audit, this can be compared to the milestones you have reached and determine your productivity and progress. You can also track the number of audits that are recommended for the employees of your industry standard.

It All Comes Down to the Finale

The end of an audit is the proof of all the hard work that you did. The document’s most important aspect is the final report. So, before issuing this look at the meetings that you have had with the auditors. Look at the number of these and the content of what was discussed.

Be sure you are positive that your clients understand what objectives and the scope of the audit fully. Be sure that these findings are covered and have been handled by the client.  Be sure that the audit report has a made list of all the recommendations that were implemented.

Ask, will this report hit your stakeholders right between their eyes? Will the point get brought across to the client?

It is really an important step to know that you understand that you know why this audit is important, and what desire there is to fix the findings of the audit.  These tips should help you when handling your next internal audit.