CBOK: Voice of the Customer

This report provides an overview of results from the 2015 Global Internal Audit Practitioner Survey regarding The Institute of Internal Auditors’ (IIA’s) International Standards for the Professional Practice of Internal Auditing. The Standards represent minimum expected requirements that normally should be found in all internal audit functions. They provide a foundation for performing efficiently and effectively, and are intended for use wherever internal auditing is practiced. Yet despite the fact that conformance to the Standards is mandatory for all members of The IIA and for all Certified Internal Auditors (CIAs), the survey found significant levels of nonconformance. Almost half of surveyed chief audit executives (CAEs) report that they do not use all the Standards, and fewer still say that they are in conformance with the Standards.
An underlying objective of the Standards is to ensure that internal audit is effective, of high value, and of high and consistent quality. Nonconformance undermines this objective, and significant levels of nonconformance are detrimental to the image and reputation of the internal audit profession. Fortunately, the CBOK survey also found that significant progress is being made toward more consistent conformance.
The CBOK 2015 Global Internal Audit Practitioner Survey found:

• While use of the Standards is increasing, almost half of CAEs still report that they do not use all of the Standards.
• Auditors holding internal audit-related professional certifications use the Standards more often than auditors without such certifications.
• Members of The IIA use the Standards more often than nonmembers.
• Standards use is more likely in highly regulated industries than in less-regulated industries, and more likely in publicly traded organizations than in privately owned organizations.]
• Use of all of the Standards is higher in the regions of North America, Europe, and SubSaharan Africa than in other parts of the world.
• More work may be needed in learning to apply the Standards and other elements of The IIA’s International Professional Practices Framework (IPPF) effectively. Almost a quarter of internal auditors evaluate themselves as being below the competent level in applying the IPPF to their work.

Use of the Standards may be particularly challenging for internal auditors working at smaller internal audit departments. Auditors in one- to three-person departments use all of the Standards at a rate of 6% to 18% below the
global average. Other reasons given for nonconformance include lack of board/management support, lack of perceived benefit compared to cost, and impacts on conformance caused by government regulations or standards.