Unlocking Internal Audit Performance: Key Performance Indicators

• The role of internal audit has been transformed from a financial oversight role into a strategic partner in risk management.

  
  

•  The role of the internal audit function can be summarized into three primary missions:

  • Assurance: Providing objective evaluations of risk management and control processes.

  • Advisory: Offering recommendations to improve operational efficiency and effectiveness.

  • Insight: Delivering forward-looking perspectives to anticipate and mitigate potential risks.

  
  

• A modern internal audit department can be measured based on:

  • Efficiency Metrics: Assessing the timeliness and cost-effectiveness of audit processes.​

  • Effectiveness Metrics: Evaluating the quality and impact of audit findings and recommendations.​

  • Stakeholder Satisfaction: Measuring the satisfaction levels of management and the audit committee with the audit function's performance.​

  • Coverage Metrics: Determining the extent to which the audit plan addresses high-risk areas.​

  • Follow-up Rates: Tracking the implementation of audit recommendations and the resolution of identified issues.