(Desperately) Wanted: Good Internal Auditors and Better Risk Assessments

A new internal audit survey report from Ernst & Young (sent to me by ACL Services) makes a strong case for GRC. While that statement probably holds true for any internal audit survey these days, the results, available via a PDF download here, are worth a look.

Two of the survey’s findings that strike me as noteworthy.

First, internal audits continue to struggle to find enough qualified people to staff their departments. Less than three-quarters of the global companies that responded to the survey are at or above 90 of budgeted headcount. The italics are mine: at a time when every other corporate function is rushing to slash costs, it is striking that internal audit cannot use its allotted staffing budget.

Second, only 17 percent of responding companies rated their risk assessment capability performance as “very competent.” That’s a problem (and, of course, an opportunity): the risk assessment underpins the entire risk management program (at least it should) .