More Related Content More from SAP Analytics (20) Survey 2014: Transforming Internal Audit Management2. © 2014 SAP SE or an SAP affiliate company. All rights reserved. 2Internal
Background
The following includes insights from a survey on
“Transforming Internal Audit Management”
The survey was conducted at the Institute of Internal
Auditors Conference in July 2014 at London
Insights were provided by 150+ participants
3. © 2014 SAP SE or an SAP affiliate company. All rights reserved. 3Internal
Key Findings
consider Integration with Risk and Control
management systems and/or the underlying
ERM as the key capability needed in the future
81%
view that Cost and Difficulty in implementing
respectively are the biggest concerns with the use
of technology by internal audit.
54%
use integrated audit management solutions with
analytical capabilities; only 14% say that current
audit management/analysis tools meet all/most
needs
believe that Technology will fundamentally change
how audit services are performed and how the
value of those services is measured
54%
15%
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Technology Fundamentally Impacts Audit Services
Performance
Q: What role do you believe technology will play in transforming internal audit?
Survey Question #1
Key Takeaway: 54% organizations believe that Technology will fundamentally change how audit services
are performed and how the value of those services is measured
1
Fundamentally change how audit
services are performed and measured
54%
Drive cost reduction and
increased effectiveness
26%
Impact on IT audits only
7%
Enable a shift to trusted advisor
role for internal audit
13%
Source: SAP Transforming Internal Audit Management Survey; N ~ 150
5. © 2014 SAP SE or an SAP affiliate company. All rights reserved. 5Internal
Inadequate Current Technology Adoption
Key Takeaway: Only 15% of organizations are using integrated audit management solutions with
analytical capabilities; only 14% say that current audit management/analysis tools meet all/most needs
38%
28%
19%
15%
Audit Technology Used
Q: “What type of audit technology are you using today?” & If you are using an audit management or audit analysis tool today,
how well do they meet your needs?
Specialized analysis/
monitoring software
Basic applications like
email, document
management
Unintegrated Point
solutions
Integrated solution with
analytical capability
2
Meet most/all needs
14%
Meet some needs
57%
Meet a minimal
set of needs
20%
Not at all
9%
Survey Questions #2 & #3Source: SAP Transforming Internal Audit Management Survey; N ~ 150
6. © 2014 SAP SE or an SAP affiliate company. All rights reserved. 6Internal
Desired Future Capabilities
Key Takeaway: 81% organizations consider Integration with Risk and Control management systems
and/or the underlying ERM as the key capability needed in the future*
3
1%
2%
2%
6%
1%
5%
1%
4%
2%
6%
6%
8%
8%
7%
8%
9%
18%
16%
16%
23%
21%
17%
22%
23%
25%
37%
31%
37%
32%
33%
38%
43%
36%
34%
37%
22%
30%
23%
49%
39%
35%
30%
32%
30%
29%
27%
20%
21%
Integration with Risk & Control mgt and/or ERM
Reporting and dash boarding
Collaborative tools
Predictive analytics
Mobility
Big Data
Resource management and scheduling
Off-line capability
Self-assessment surveys
Sentiment analysis
1-Low 2-Low/Medium 3-Medium 4-High 5-Critical
Survey Question #4
*Note – Criticality measured in terms of 4/5 importance rating on a scale of 1-5
Source: SAP Transforming Internal Audit Management Survey; N ~ 150
Q: “Which of the following capabilities do you think will be needed by internal auditors in the future?”
7. © 2014 SAP SE or an SAP affiliate company. All rights reserved. 7Internal
Biggest Impediments
Cost and Difficulty in Implementing Technology
Key Takeaway: 54% and 45% of the respondents are of the view that Cost and Difficulty in implementing
respectively are the biggest concerns with the use of technology by internal audit.
Q: “What are your main concerns with the use of technology by internal audit?”
54%
45%
25% 24%
20%
13%
Cost Difficulty in
implementing
Security and
confidentiality of work
papers
Resistance by audit
staff
Quality of solutions
available today
Impact on audit
independence
Cost and Difficulty in implementing
technology are the biggest concerns
4
Survey Question #5Source: SAP Transforming Internal Audit Management Survey; N ~ 150
8. © 2014 SAP SE or an SAP affiliate company. All rights reserved.
Appendix
9. © 2014 SAP SE or an SAP affiliate company. All rights reserved. 9Internal
Participant Profile
Over 150+ Participants Responded to the Survey
Industry Mix (% of Respondents)
16%
10%
6%
5%
5%
5%
5%
4%
4%
3%
3%
3%
2%
1%
1%
1%
1%
1%
1%
1%
1%
1%
1%
1%
20%
Public Sector
Banking
Oil and Gas
Professional Services
Consumer Products
Insurance
Chemicals
Utilities
Healthcare
Other Services
Mining
High Tech
Travel & Transport Railways
Automotive
Defense and Security
Aerospace and Defense
Travel & Transport Airlines
Retail
Telecommunications
Industrial Machinery and Components
Sports and Entertainment
Higher Education and Research
Travel & Transport Hospitality
Other
No Response
Organization Size (% of Respondents)
44%
34%
10%
7% 6%
Chief Audit
Executive
Audit
ManagerSupervisor
Professional Audit
Staff
Other No Response
Participant’s Role (% of Respondents)
32% 30% 31%
7%
Less than €1 billion Between €1 billion
and €5 billion
More than €5 billion No Response
Source: SAP Transforming Internal Audit Management Survey; N ~ 150
10. © 2014 SAP SE or an SAP affiliate company. All rights reserved.
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