Welcome to GAIN's 2011 Annual Benchmarking Study
The leader in internal audit benchmarking and networking services since 1992!
Report Date: 1/25/2011
Benchmarking Tier 1 Benchmarking Tier 2 Benchmarking Tier 3 Benchmarking Tier 4 Benchmarking Tier 5
Audit Staff Size: 6 to10 Revenues: $1 Billion to $5 Manufacturing Universe
Billion
Terms and Conditions
This report contains confidential data and is for the exclusive use of your organization. Distribution to other companies is strictly prohibited. By
accepting this document you are consenting to be bound by an agreement between your organization and the Institute of Internal Auditors (The IIA).
Unauthorized reproduction or distribution of this document, or any portion of it, may result in severe civil or criminal penalties.
Your suggestions for improvement are always welcome and can be submitted via e-mail to gain@theiia.org.
Thank you for your continued participation in the GAIN benchmarking program. For more information, visit www.theiia.org/gain.
Table Of Contents
Section 1: Demographic Information Page 1 Section 5: Sourcing Page 43
Respondents by Tier Group ......................................................................................... Page 2 Sourced Staff Profile .................................................................................................. Page 44
Demographic Information: Financial ............................................................................. Page 3 Costs of Purchased Services ..................................................................................... Page 45
Respondents by Expense Class................................................................................... Page 4 Level of Sourcing........................................................................................................ Page 46
Demographic Information: Employees ......................................................................... Page 5 What Internal Audit Activities are Sourced ................................................................. Page 47
Respondents by Industry .............................................................................................. Page 6 Percentage of Audit Areas Sourced ........................................................................... Page 48
Organizational Demographics ...................................................................................... Page 7 Sourced Hours and Fees ........................................................................................... Page 49
Organizational Demographics ...................................................................................... Page 8 Fees For Purchased Services .................................................................................... Page 50
Sarbanes-Oxley ............................................................................................................ Page 9 Future Reliance on Sourcing ...................................................................................... Page 51
Section 2: Summary Information Page 10 Section 6: External Audit Page 52
Revenues and Assets Per Auditor.............................................................................. Page 11 External Audit ............................................................................................................. Page 53
Expenses and Employees Per Auditor ....................................................................... Page 12 Total IA Hours Spent on External Audit ..................................................................... Page 54
External Audit Fees as Percentage of Total Revenues, Assets, and Expenses ........ Page 55
Section 3: Internal Audit Costs Page 13
Summary of Audit Costs ............................................................................................. Page 14 Section 7: Internal Audit Oversight Page 56
Salary and Bonuses as % of Total Audit Costs (Excl. Benefits and Allocated Costs) Page 15
Section 7.1: Internal Audit Oversight - Chief Audit Executive Page 57
Salary and Bonuses as % of Total Audit Costs (Incl. Benefits and Allocated Costs) . Page 16
CAE Administrative Reporting Line ............................................................................ Page 58
Benefits as a Percentage of Total Audit Costs ........................................................... Page 17
CAE Functional Reporting Line .................................................................................. Page 59
Travel and Training as % of Total Audit Costs (Excl. Benefits and Allocated Costs) . Page 18
Title of Chief Audit Executive ..................................................................................... Page 60
Travel and Training as % of Total Audit Costs (Incl. Benefits and Allocated Costs) .. Page 19
Responsibilities of Chief Audit Executive ................................................................... Page 61
Total Costs per Auditor ............................................................................................... Page 20
Total Costs per Auditor (with and without Travel)....................................................... Page 21 Section 7.2: Internal Audit Oversight - Audit Committee Page 62
Travel and Training Costs per Auditor ........................................................................ Page 22 Audit Committee ......................................................................................................... Page 63
Audit Committee Chair ............................................................................................... Page 64
Section 4: Internal Audit Staffing Page 23 Audit Committee Meetings ......................................................................................... Page 65
Internal Audit Staff Profile ........................................................................................... Page 24 Private Sessions with Audit Committee ..................................................................... Page 66
Change in Internal Audit Staff Size............................................................................. Page 25 Presence of Audit Committee Charter ....................................................................... Page 67
Summary of Professional Audit Staff by Function ...................................................... Page 26 Responsibilities of Audit Committee ........................................................................... Page 68
General and IT Auditors as a Percentage of Total Auditors ....................................... Page 27 Information Shared with Audit Committee .................................................................. Page 69
Fraud and ESH Auditors as a Percentage of Total Auditors ...................................... Page 28 Professional Development of Audit Committee Provided by Internal Audit ............... Page 70
Other Compliance Auditors as a Percentage of Total ................................................ Page 29 Evaluations of Audit Committee and Charter ............................................................. Page 71
Presence of Dedicated IT Audit Group ....................................................................... Page 30 Expertise Present on Audit Committee ...................................................................... Page 72
Level of Education Sought for Auditors ...................................................................... Page 31
Level of Education Sought for Auditors Continued ..................................................... Page 32 Section 8: Risk Assessment and Audit Planning Page 73
Internal Audit Experience of Auditors ......................................................................... Page 33
Section 8.1: Audit Planning Page 74
Relevant Non-Internal Audit Experience of Auditors .................................................. Page 34
Audit Performance...................................................................................................... Page 75
Industry Experience of Auditors.................................................................................. Page 35
Percent of Audits Planned Actually Performed .......................................................... Page 76
Staff with Professional Designation as Percent of Total Staff .................................... Page 36
Number of Unplanned Audits ..................................................................................... Page 77
Percent of Staff with Professional Designations ......................................................... Page 37
Audits Per Auditor ...................................................................................................... Page 78
Professional Designation Mix ..................................................................................... Page 38
Allocation of Audit Plan .............................................................................................. Page 79
CIA Designation.......................................................................................................... Page 39
Percent of Total Hours for Unallocated Time ............................................................. Page 80
Internal Audit Hiring Practices .................................................................................... Page 40
Percent of Management Requests Completed .......................................................... Page 81
Staff Turnover ............................................................................................................. Page 41
Type of Audit Plan ...................................................................................................... Page 82
Training Hours ............................................................................................................ Page 42
Years Covered By Audit Plan ..................................................................................... Page 83
Section 8.2: Risk Assessments Page 84
Presence of Formal Risk Assessment Process for Internal Audit .............................. Page 85
Frequency of Internal Audit Risk Assessment ............................................................ Page 86
Factors Influencing Risk Assessment......................................................................... Page 87
Presence of Engagement Level Risk Assessments ................................................... Page 88
Engagement Level Risk Assessments ....................................................................... Page 89
Section 9: Audit Implementation / Life Cycles / Reporting Page 90
Allocation of Audit Staff Time ..................................................................................... Page 91
Audit Life Cycle........................................................................................................... Page 92
Audit Life Cycle - Reporting ........................................................................................ Page 93
Tools and Techniques Utilized on Audits ................................................................... Page 94
Audit Engagement Reporting ..................................................................................... Page 95
Section 9.1: Observations and Follow-Up Audits Page 96
Audit Follow-Up Activities ........................................................................................... Page 97
Days Outstanding for Open Items .............................................................................. Page 98
Opinion Activities ........................................................................................................ Page 99
Section 10: Performance Management Page 100
Presence of Formal Quality Assurance and Improvement Program ........................ Page 101
Section 10.1: Internal Quality Assessments Page 102
Frequency of Internal Quality Assessments ............................................................. Page 103
Internal Quality Assessments ................................................................................... Page 104
Section 10.2: External Quality Assessments Page 105
Completion of External Quality Assessment ............................................................ Page 106
Obstacles of External Quality Assessment............................................................... Page 107
Performance of External Quality Assessments ........................................................ Page 108
Results of External Quality Assessment Shared With .............................................. Page 109
Section 11: Subscribers By Industry Group Page 110
Revenues and Assets Per Auditor
Page 11
Summary of Audit Costs
Salary Bonuses Employee Benefits Travel Training Purchased Allocated or Other Total
Services Overhead Costs
Audit Staff Size: 6 $650,543 $73,565 $155,861 $59,684 $14,834 $159,383 $31,541 $23,649 $1,163,915
to10
Revenues: $1 $919,915 $116,385 $245,748 $75,220 $19,763 $106,880 $109,902 $61,053 $1,640,704
Billion to $5
Billion
Manufacturing $1,387,783 $162,843 $405,050 $288,076 $23,219 $265,111 $65,658 $102,291 $2,691,845
Universe $2,068,626 $217,015 $571,729 $214,610 $45,350 $266,719 $262,706 $96,173 $3,720,235
Page 14
Internal Audit Experience of Auditors
Page 33
Responsibilities of Audit Committee
Selects the external Reviews the external Reviews preliminary Reviews results of Approves the charter of Reassesses and approves
auditor and reviews the auditor's overall audit plan annual and interim engagements performed the internal audit activity a new internal audit
audit fees and the financial statements by external auditors, activity charter annually
engagement letter including management
letter
Audit Staff Size: 6 to10 90% 90% 86% 95% 96% 68%
Revenues: $1 Billion to $5 84% 87% 87% 95% 96% 63%
Billion
Manufacturing 95% 97% 95% 95% 88% 55%
Universe 85% 85% 87% 93% 91% 66%
Reviews and approves the Directly communicates Reviews evaluations of Ensures that engagement Reviews policies on Reviews financial
internal audit activity's with the chief audit risk management control results are given due unethical and illegal statements to be
plans and resource executive who regularly and governance processes consideration and receive procedures transmitted to regulatory
requirements attends and participates in as reported by the internal distributions of agencies
meetings auditors communications
Audit Staff Size: 6 to10 96% 96% 88% 78% 63% 75%
Revenues: $1 Billion to $5 98% 95% 86% 74% 63% 73%
Billion
Manufacturing 93% 97% 83% 82% 72% 85%
Universe 94% 95% 88% 72% 63% 73%
Participates in the Reviews the impact of new Reviews the organization's Considers evaluations of Review performance of Reviews proposed
selection of accounting or proposed legislation or insurance program the effectiveness and Chief Audit Executive compensation
policies regulations efficiency of information
systems
Audit Staff Size: 6 to10 30% 65% 26% 64% 67% 24%
Revenues: $1 Billion to $5 29% 57% 32% 59% 69% 29%
Billion
Manufacturing 33% 75% 48% 58% 68% 25%
Universe 29% 61% 31% 58% 73% 26%
Page 68
Type of Audit Plan
Page 82
Performance of External Quality Assessments
Page 108