The document outlines the Touchstone Research webinar organized by AuditNet, focusing on insights from a global survey of over 1,000 auditors from 120 countries. It emphasizes the importance of updating internal audit methodologies, addressing compliance-heavy audit plans, recognizing IT risks, and managing third-party risks. Key insights from the research highlight the need for a shift in audit focus to enhance effectiveness and value in the internal audit function.

1. 5-10-2020
1
Colleen Knuff
CPA, CIA, CISA, CRMA, NPDP
Senior Director, Product Management
Wolters Kluwer, TeamMate
Touchstone Research
for Internal Audit
Jonathan Pizarro
Lead Product Manager - Americas
Wolters Kluwer, TeamMate
About Jim Kaplan, CIA, CFE
 President and Founder of AuditNet®,
the global resource for auditors
(available on iOS, Android and
Windows devices)
 Auditor, Web Site Guru,
 Internet for Auditors Pioneer
 IIA Bradford Cadmus Memorial
Award Recipient
 Local Government Auditor’s Lifetime
Award
 Author of “The Auditor’s Guide to
Internet Resources” 2nd Edition
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About AuditNet® LLC
• AuditNet®, the global resource for auditors, serves the global audit
community as the primary resource for Web-based auditing content. As the first online
audit portal, AuditNet® has been at the forefront of websites dedicated to promoting the
use of audit technology.
• Available on the Web, iPad, iPhone, Windows and Android devices and
features:
• Over 3,300 Reusable Templates, Audit Programs, Questionnaires, and
Control Matrices
• Webinars focusing on fraud, data analytics, IT audit, and internal audit
with free CPE for subscribers and site license users.
• Audit guides, manuals, and books on audit basics and using audit
technology
• LinkedIn Networking Groups
• Monthly Newsletters with Expert Guest Columnists
• Surveys on timely topics for internal auditors
Introductions
HOUSEKEEPING
This webinar and its material are the property of AuditNet® and its Webinar partners. Unauthorized
usage or recording of this webinar or any of its material is strictly forbidden.
 If you logged in with another individual’s confirmation email you will not receive CPE as the
confirmation login is linked to a specific individual
 This Webinar is not eligible for viewing in a group setting. You must be logged in with your
unique join link.
 We are recording the webinar and you will be provided access to that recording after the
webinar. Downloading or otherwise duplicating the webinar recording is expressly prohibited.
 If you meet the criteria for earning CPE you will receive a link via email to download your
certificate. The official email for CPE will be issued via cpe@email.cpe.io and it is important to
white list this address. It is from this email that your CPE credit will be sent. There may be a
processing fee to have your CPE credit regenerated if you did not receive the first mailing.
 Submit questions via the chat box on your screen and we will answer them either during or at
the conclusion.
 You must answer the survey questions after the Webinar or before downloading your certificate.
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IMPORTANT INFORMATION
REGARDING CPE!
 ATTENDEES - If you attend the entire Webinar you will receive a confirmation email for CPE. You
must complete the required survey in order to get the link to download your certificate. The official
email for CPE will be issued via cpe@email.cpe.io and it is important to white list this address. It is
from this email that your CPE confirmation will be sent.
 We cannot manually generate a CPE certificate as these are handled by our 3rd party provider. We
highly recommend that you work with your IT department to identify and correct any email delivery
issues prior to attending the Webinar. Issues would include blocks or spam filters in your email
system or a firewall that will redirect or not allow delivery of this email from Gensend.io
 We are not responsible for any connection, audio or other computer related issues. CPE is issued
based on attendance and you must attend the entire session. If you arrive late or leave early you
will not receive a certificate of attendance.
The views expressed by the presenters do not necessarily represent the views, positions, or
opinions of AuditNet® LLC. These materials, and the oral presentation accompanying them,
are for educational purposes only and do not constitute accounting or legal advice or create an
accountant-client relationship.
While AuditNet® makes every effort to ensure information is accurate and complete,
AuditNet® makes no representations, guarantees, or warranties as to the accuracy or
completeness of the information provided via this presentation. AuditNet® specifically
disclaims all liability for any claims or damages that may result from the information contained
in this presentation, including any websites maintained by third parties and linked to the
AuditNet® website.
Any mention of commercial products is for information only; it does not imply
recommendation or endorsement by AuditNet® LLC
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Introduction
For 20 years, Colleen has served as a Product Leader for
TeamMate. She leads a global product team and is focused on
innovative solutions to real market problems with a heavy
emphasis on voice of customer and contextual design. Colleen
recently kicked off our Touchstone Research which to date has
provided rich insights into the current and future state of
internal audit from the voices of over 1,000 auditors in 120
countries.
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Colleen Knuff, CPA, CIA, CISA, CRMA, NPDP
Senior Director, Product Management, Wolters Kluwer TeamMate
Touchstone Research for Internal Audit
Introduction
Jonathan brings over 10 years of Enterprise Product
Management Experience and currently serves as a Lead
Product Manager within TeamMate. Jonathan is responsible
for ensuring the Americas client base is well represented
within our Product portfolio. He coordinates contextual design
interviews with customers, prospects and business partners to
confirm that upcoming features will provide maximum value.
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Jonathan Pizarro
Lead Product Manager | Wolters Kluwer TeamMate
Touchstone Research for Internal Audit
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 The objective of the Touchstone Research
 How the Touchstone Maturity Model can
benefit Internal Audit Teams
 Why Touchstone Research Benchmarks can be
a planning tool
 How the 4 Key Insights from Touchstone
Research impact Internal Audit Teams
Learning Objectives
Touchstone Research for Internal Audit 9
Touchstone Research Statistics
 Kick off: Jan. 17, 2020 – still open
 Critical mass by Feb. 28, 2020
 > 1,000 responses
 > 120 countries
 Market mix: ~ 35% of respondents are not
clients
10Touchstone Research for Internal Audit
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Touchstone Research for Internal Audit
Global vs Regional: 120 Countries
133
272
47
11Touchstone Research for Internal Audit
North
America
37%
LATAM
4%
Europe
13%Middle
East
7%
Africa
19%
Asia
Pacific
18%
ANZ
2%
20 13 18 22
47
336
163
8
27
12
26
76
8 21 28 34 34
14 18
48
28 19
7 5 4 5
22
185
72
5
1…
4 7
28
1 7 7 8 8 1 5
14 13
1
Global Americas
Touchstone Research for Internal Audit
Across Multiple Industries
At least 10 responses in each industry
12Touchstone Research for Internal Audit
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Touchstone Research for Internal Audit
 Methodology Approach
 Knowledge & Content
 Risk Assessment
 Scheduling
 Time Tracking
 Audit File Structure
 Audit Report
 Issue Tracking
 Management Information Reporting
 Data Analytics
 Technology Implementation
 Use of Technology
 Staff Training
89 Questions across 13 Operational Components
Data-driven results
for more informed
Benchmarking
13Touchstone Research for Internal Audit
Internal Audit Maturity Model
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“One size
never fits all.
One size fits
one. Period.”
15Touchstone Research for Internal Audit
Other Methodology Maturity Models
 Generalized
 Difficult to access where you can/should improve
 Difficult to pinpoint what is necessary to move up
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Maturity Definitions for Touchstone Research
Fact Collectors: Use a cyclical based audit approach which is very document focused, little attention to the IIA
Standards and low technology usage. No collaboration with the business.
Information/ File Managers: Use a cyclical based audit approach which is very document focused but
attention to workflow and evidence of review is more prevalent. Office technology in heavy use under a
prescribed process. Little collaboration with the business.
Business Advisors: Risk-based audit approach with attention to the IIA Standards. Purpose built tools and
workflows are used for consistency and efficiency. Some collaboration with the business.
Value Accelerators: Risk approach with emphasis on streamlining activities and collaboration with the
business. Purpose built tools which provide transparency and visualization of outcomes are important.
Trail Blazers: Dynamic risk assessment/ agile audit approach with emphasis on automating routine activities
and continuous collaboration with the business. Emphasis on sharing real-time insights with stakeholders and
visualization of outcomes are important.
17Touchstone Research for Internal Audit
Select an area
of focus for
improvement.
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Touchstone Research Benchmarks
“Benchmarking provides an inventory of
creative changes that other companies
have already enacted.”
Touchstone Research – Internal Audit Benchmarks
 Allows teams to ‘snap the line’ on current
status
 Compare your maturity to your peers on
each operational component
 Select the operational components where
change is required or desired
 Use the benchmark as evidence when
requesting change support (headcount,
budget, tools, etc.)
 Use the Maturity Model as a guide for
progress
 Re-assess process in 12 to 18 months time
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Touchstone Research – Internal Audit Benchmarks
Four sets of benchmarks:
 Full Results of Touchstone Research
 Industry Peers
 Geography (Major Territory) Peers
 Audit Teams of Similar Size
21Touchstone Research for Internal Audit
Touchstone Research – Internal Audit Benchmarks
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Touchstone Research – Internal Audit Benchmarks
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Key Insights
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4 Key Insights
1. Time to Change the Game –
Methodology Updates Required
2. Audit Plans are Compliance Heavy
3. Audit Plans are Light on IT Risks
4. Third Party Risks Require Attention
25Touchstone Research for Internal Audit
Key Insight #1: Time to Change the Game
Global Response (N=1,010) Americas Response (N=452)
Yes, 50%
No, 50%
Global
Yes, 56%
No, 57%
Americas
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Key Insight #1: Time to Change the Game
25%
28%
12%
45%
24%
48%
27%
60%
64%
18%
20%
8%
11%
35%
31%
49%
15%
39%
15%
42%
9%
7%
52%
51%
66%
65%
40%
41%
39%
40%
37%
37%
31%
31%
29%
30%
29%
26%
24%
Continuous Risk Assessment
Agile Audit
Analytics as part of Every Audit
Advanced Analytics
Continuous Testing & Monitoring Plan
Process Mining to Understand Controls
Talent Mgt Strategy
Machine Learning Strategy
Robotics Process Automation Strategy
Staffing Uses Other Talent
Active Integrated Assurance
High Impact & Actionable Reporting
Have a Strategic Plan
Not Doing Executing Plan To Do
27Touchstone Research for Internal Audit
Key Insight #1: Time to Change the Game
40%
41%
39%
40%
37%
37%
31%
31%
29%
30%
29%
26%
24%
34%
34%
14%
47%
31%
57%
34%
66%
66%
20%
25%
10%
14%
28%
23%
44%
15%
33%
11%
40%
8%
6%
56%
47%
62%
64%
38%
43%
42%
38%
36%
32%
26%
26%
28%
24%
28%
28%
22%
Continuous Risk Assessment
Agile Audit
Analytics as part of Every Audit
Advanced Analytics
Continuous Testing & Monitoring Plan
Process Mining to Understand Controls
Talent Mgt Strategy
Machine Learning Strategy
Robotics Process Automation Strategy
Staffing Uses Other Talent
Active Integrated Assurance
High Impact & Actionable Reporting
Have a Strategic Plan
Americas
Not Doing Executing Plan To Do
28Touchstone Research for Internal Audit
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Key Insight #2: Audit Plans are Compliance Heavy
 Regulatory Compliance work scored as the highest focus area for Internal Audit
 40% of Audit Plan time is dedicated to compliance activities 1
 Staff backgrounds may influence focus
1 Backed up by The IIA North America Pulse Survey 2020 and the ECIIA Risk in Focus 2020 survey
29Touchstone Research for Internal Audit
Key Insight #2: Audit Plans are Compliance Heavy
1.5
2
2.5
3
3.5
4
1.5 2 2.5 3 3.5 4
Artificial Intelligence
Robotics/ RPA
Internet of Things
Mobile Channels
Social Media Governance
Cloud Solutions
Third Party Ecosystems Supply Chain
Cyber Vulnerabilities
Data Governance
Risk Culture
Strategic Workforce
Planning
Payment Platforms
Project Management
Regulatory Compliance
Business Continuity
IT Governance
Data Privacy
ImportancetotheOrganization
Internal Audit Focus
30Touchstone Research for Internal Audit
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Key Insight #3: Audit Plans are Light on IT
 Most IT Risks are not adequately covered on the Audit Plan compared to
organizational importance
 Staff backgrounds may influence focus
 Internal Audit teams do not assess their digital skills or focus attention on digital/
IT skills when hiring
31Touchstone Research for Internal Audit
Key Insight #3: Audit Plans are Light on IT
1.5
2
2.5
3
3.5
4
1.5 2 2.5 3 3.5 4
Artificial Intelligence
Robotics/ RPA
Internet of Things
Mobile Channels
Social Media Governance
Cloud Solutions
Third Party Ecosystems Supply Chain
Cyber Vulnerabilities
Data Governance
Risk Culture
Strategic Workforce
Planning
Payment Platforms
Project Management
Regulatory Compliance
Business Continuity
IT Governance
Data Privacy
Internal Audit Focus
ImportancetotheOrganization
32Touchstone Research for Internal Audit
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Key Insight #4: Third Party Risk Requires Attention
 As organizations have felt the impact of COVID-19, 3rd Party Ecosystems, Supply
Chain Management and Cyber Vulnerabilities have increased in importance
 Lack of ownership of 3rd Party Risk is cited as a key control weakness
 Unique risk that is the headpin for other strategic risks:
 IT Security
 Supply Chain
 Business Continuity
 Data Privacy
 Brand
 …
33Touchstone Research for Internal Audit
Key Insight #4: Third Party Risk Requires Attention
1.5
2
2.5
3
3.5
4
1.5 2 2.5 3 3.5 4
Cloud Solutions
Third Party Ecosystems Supply Chain
Cyber Vulnerabilities
Business Continuity
Internal Audit Focus
ImportancetotheOrganization
34Touchstone Research for Internal Audit
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Type your questions
into the chat to submit them.
Questions?
Visit www.TeamMateSolutions.com
for the latest in Internal Audit thought leadership and more.
Thank you!
https://www.surveymonkey.com/r/TM_Touchstone_Email
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Contact tmuf@wolterskluwer.com for
more information
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