Internal Audit

Benchmarking
Health of the Internal Audit Profession – Part One
Contents
Purpose of this presentation
Survey participants
Professional designations/certifications
Appendix 1 – Methodology
Size of organisations
Appendix 2 – Sectors
Size of internal audit functions
Organisational governance Appendix 3 - Industries

IPPF (2017) Conformance levels Appendix 4 – Organisation Size

IPPF (2025) Readiness Appendix 5 - Geographic spread

Purpose of this presentation
Chartered IIA is publishing a series of benchmarking presentations for members that are based
on an analysis of the responses to our recent Health of the IA Profession Survey. This is the first
of a series, with others following in January and February 2025.

The purpose is to provide some benchmarking information and discussion points for internal
audit functions to use and consider. We are also aiming to highlighting the kind of output that is
available from this survey, with the hope of pursuing this survey on a larger, more regular basis.

The presentations will not provide analysis or commentary on the statistics themselves, and
users should understand they are based on a relatively small sample (ie the responses of 216
member participants from across the UK & Ireland, as well as role levels, sectors and industries).

Internal Audit Benchmarking – Part One December 2024 3

Purpose of this presentation
A full report is intended to be published after this series, which will provide analysis on the statistical
information contained in the presentations as well as on the comments provided by participants as part of
completing the survey.

Based on feedback to these presentations, our longer-term aim will be to ask members to respond in
greater numbers to this survey again in Autumn 2025 - so that we can then share an updated set of data,
analyses, commentary and conclusions that are statistically more representative of the IA profession as a
whole.

Internal Audit Benchmarking – Part One December 2024 4

Survey Participants
• 216 participants completed the survey Audit committee
chair

2.3%
from a range of internal audit roles. 2.3% 0.5%
Audit committee
member

6.0%
• The largest being Chief Audit Executives Chief Audit
Executive (Head of
Internal Audit)
representing 37% of participants. 17.6%
Senior Internal Audit
Manager
37.0%
• The smallest proportion being Audit Internal Audit
Manager

Committee Members with 0.5% of 14.8%

Senior Internal
Auditor
Participants Internal Auditor

Please see the appendices for more 19.4%

Trainee/Apprentice
Internal Auditor
information on the profile of respondents.

Internal Audit Benchmarking – Part One December 2024 5

Professional Designations/Certifications
Which of the following professional designations do you hold,
• CIA, Chartered Internal Auditor and Accountancy or are you studying towards? Tick all that apply
qualifications were the most popular and the rest 60.0%

each at below 8% of the population. 50.0%

50.5%
47.7%

• Within ‘Other’ CISA/CISM was the most popular.

40.0%
34.7%
• CAEs: 55% - Chartered Internal Auditor
30.0%
Certification, 51% - accountancy qualification
20.0% 18.5%
• Financial services: 47% - Certified Internal
Auditor, 41% Accountancy Qualification, and 42% 10.0% 7.9% 7.9%
5.6%
4.2% 3.7%
Chartered Internal Auditor 0.9% 1.9% 2.3%
0.0%

• For both CAEs and financial services these

statistics indicate that some held more than one
qualification.

Internal Audit Benchmarking – Part One December 2024 6

Size of organisations
What is the approximate / average size of the • The average size of the organisation
organisation(s) that you work for across UK and Ireland?
participants worked for varied. 35.6% indicated
0.5% 0.0%
that the average size of their organisation was
Less than 10
5.1% employees more than 1,000 employees.
20.4%
7.9% Less than 50
employees
• Private Sector: 33.33% - more than 1,000
50 to 150 employees, with 23.96% indicating it was more
employees
than 10,000 employees
13.0% 151 to 500
employees
• Public sector: 33.33% - more than 1,000
501 to 999
employees employees, with 23.81% saying it was more
17.6%
More than 1000 than 5,000 employees
employees

More than 5000

• Not-for-profit: 48.15% - more than 1,000
employees
employees.
35.6%
More than 10,000
employees

Internal Audit Benchmarking – Part One December 2024 7

Size of internal audit functions
• Overall, 38.9% of respondents What is full time equivalent structure
size of your internal audit function?
indicated that the full-time equivalent 5.6%
3.7%
structure size was between 4 to 10. Less
6.0% 23.6% than 4
4 to 10
• Private Sector: 29.17% - FTE
11 to 20
8.3%
between 4 to 10 21 to 50

• Public Sector: 48.57% - FTE between

51 to
100
More
4 to 10 13.9% than 100
More
than 250

• Not for Profit: 51.85% - FTE was less

38.9%
than 4

Internal Audit Benchmarking – Part One December 2024 8

Size of internal audit functions – by organisation size
Org FTE vs Less than 501-999 1,000 -4,999 More than
IA FTE 500 5,000 • Organisation size of 1,000 employees
IA size Less
than 4
44.8% 42.9% 29.9% 21.7% seemed to be a key differentiator for the
IA size 4 to 20.7% 32.1% 50.7% 53.9% size of the internal audit team.
10
• Organisation size of more than 1,000 FTE then
IA size 11 to 13.8% 14.3% 11.7% 13.9%
20 43.4% said their IA team was 4-10 FTEs
IA size 21 - 3.5% 7.1% 3.9% 6.1% • Organisation size of less than 1,000 FTE then
50
43.86% said their IA team was less than 4 FTEs
IA size 51 - 10.3% 3.6% 1.3% 1.7%
100
• Financial Services: 22.73% had IA FTE
IA size More 0 0 1.3% 1.7%
than 100 at 11-20.
IA size More
than 250
6.9% 0 1.3% 1% • Local authorities: 61.19% had an IA FTE
of between 4 – 10.

Internal Audit Benchmarking – Part One December 2024 9

Size of internal audit functions - by sector
• Public Sector: 48.6% was in the 4 to Sector Public Private Not-for-
profit
10 FTE, but a total of 61.9% if include
IA size Less 13.3% 26% 51.9%
the below 4 FTE. than 4
IA size 4 to 10 48.6% 29.2% 37%
• Private Sector: The most common IA size 11 to 20 13.3% 17.7% 7.4%
size was 4-10 but the second highest IA size 21 - 50 8.6% 9.4% 0
was less than 4 FTE, however c45% IA size 51 - 100 10.5% 3.1% 3.7%
had an IA FTE over 11. IA size More
than 100
0 8.33% 0
• Not for profit: has on average IA size More
than 250
5.7% 6.25% 0
smaller internal audit teams with c89%
at below 10 FTE and none of IA team
size above 100 FTE

Internal Audit Benchmarking – Part One December 2024 10

Size of internal audit functions – by industry
Industry Education Central Local Financial The rest
Gov’mt Authorities services • Education: IA FTE were all below 100,
IA size Less 42.1% 21.7% 13.4% 19.7% 26.5% with the majority 63,2%) at 10 or less
than 4
IA size 4 to
10
21.1% 8.7% 61.2% 19.7% 41% • Central government: had spikes in IA
IA size 11 15.8% 13% 10.5% 22.7% 9.6% size at less than 4, 21-50 and more than
to 20
IA size 21 - 10.5% 17.4% 9% 13.6% 10.8%
250.
50
IA size 51 - 10.5% 13% 6% 3% 8.4% • Local Authorities: all below 100 FTE, but
100
thew majority (61.2%) were in the 4 – 10
IA size 0 4.4% 0 10.6% 1.2%
More than bracket
100
IA size 0 21.7% 0 10.6% 2.4% • Financial services: a clear split with
More than
250 24.2% in the above 50 FTE and the rest at
below, with a fairly even distribution.

Internal Audit Benchmarking – Part One DD Month YYYY 11

Organisational governance
How would you describe your organisation’s overall
governance?
0.9% 1.4% Level 1 – Initial, e.g. ad hoc and unstructured
governance

7.4%
13.4% Level 2 – Infrastructure, e.g. has structures in
40.3% described their
place, but not much beyond the mechanics of a
process governance as level 3 =
13.9%
Level 3 – Integrated, e.g. co-ordinated across the
organisation with good interaction integrated.
Level 4 – Managed, e.g. Very good reporting and
use of dashboards for risk-based decision making 13.9% described it as
Level 5 – Optimised, e.g. Fully embedded and
level 5 – optimised.
transparent with excellent professionally
challenging discussions and variety of views fully
22.7% explored before decisions are made for the benefit
40.3% of the organisation.
Not applicable – I provide internal audit for multiple
client organisations

Don’t know

Internal Audit Benchmarking – Part One December 2024 12

Organisational governance (filters)
Level Level Level Level Level N/A Don’t
1 2 3 4 5 know • Level 1: Organisation size of less than 1,000 had the highest
All data 1.4% 13.4% 40.3% 22.7% 13.9% 7.4% 0.9% response as level 1, but this was only 5.3%, with the majority
(54.3) at either 2 or 3.
Financial 1.5% 12.1% 30.3% 24.2% 25.8% 6.1% 0
services • Level 2: There was a range here from 3% (IA size over 50 FTE)
Local Authorities 3% 17.9% 44.8% 16.4% 3% 13.4 1.5% to 17.9%, with the majority of the filters looked at being between
%
12% and 14%.
Not-for profit-only 0 7.4% 37% 22.2% 14.8% 18.5 0
% • Level 3: This was the highest response overall, and this was the
Private sector 1% 13.5% 35.4% 21.9% 20.8% 7.3% 0 case for all filter's apart from an IA team size over 50 FTE where
level 4 at 27.3% was the highest.
Public sector 1.9% 13.3% 42.9% 21.9% 5.4% 12.4 1.9%
% • Level 4: All filters looked at returned within the 21% to 27.3%
Organisation size 5.3% 17.5% 36.8% 12.3% 12.3% 14% 1.8% range, with the exception of, local authorities at 16.4% (which
- 1,000 or less
had level 3 at 44.8%) and organisation size less than 1,000 at
Organisation size 0 12% 41.5% 26.4% 14.5% 5% 0.6% 12.3% (where level 3 was the highest at 36.8%)
-1,000 or more
Internal audit size 1.5% 17% 46.7% 21.5% 8.2% 5.2% 0 • Level 5: saw a lowering of the %s but not as low as for level 1
- 10 or less and level 2 for many. The private sector had the highest % here
Internal audit size 2.1% 10.4% 33.3% 22.9% 22.9% 6.3% 2.1% at 20.8% for the 3 sectors, but financial services had the highest
11 - 50 overall at 25.8%. The lowest was local authorities at 3%.
Internal audit size 0 3% 24.2% 27.3% 24.2% 18.2 3%
– over 50 %

Internal Audit Benchmarking – Part One December 2024 13

Conformance with the Internation Professional
Practices Framework (2017)
What level is your internal audit function currently working at
in relation to the International Professional Practice • 74.9% of surveyors indicated they
Framework (2017) which includes the Standards?
reasonably conformed with the
7.4%
International Professional Practice
5.6% Reasonable Conformance
(conforms with over 90% of
Framework (2017) which includes
the Standards.
the Standards)

Partial Conformance
12.1% (conforms with over 75%
and has an action plan to
address the gaps) • 12.1% partially conformed with the
framework and
Low level of conformance
(conforms with less than
75% of the Standards)

• 5.6% indicated that they had a low

Prefer not to say
74.9%

level of conformance.

Internal Audit Benchmarking – Part One December 2024 14

Conformance with the Internation Professional
Practices Framework (2017)
Filter Reasonable Partial Low level of Prefer not to
conformance conformance conformance say

All data 74.9% 12.1% 5.6% 7.4%

Financial services 81.82% 9.09% 6.06% 3.03%
Local Authorities 71.64% 8.96% 10.45% 8.96%
Not-for profit 66.67% 18.52% 0 14.81%
Key: Private sector 72.63% 14.74% 5.26% 7.37%

Green indicates higher performance Public sector 78.1% 8.57% 6.67% 6.67%

than the ‘all data’, and red lower Organisation size -

1,000 or less
57.89% 19.3% 14.04% 8.77%

performance Organisation size – 81.01% 9.49% 2.53% 6.96%

1,000 or more
Internal audit size – 67.41% 15.56% 7.41% 9.63%
10 or less
Internal audit size 89.36% 4.26% 4.26% 2.13%
11 - 50
Internal audit size – 84.85% 9.09% 0 6.06%
over 50

Internal Audit Benchmarking – Part One December 2024 15

Conformance with the Internation Professional
Practices Framework (2025)
How ready are you for the new IPPF 2025, particularly the Global Internal Audit Standards 2024?

1.4%

16.7%
Already conforming (very early adopter)
23.3%
2.3% On track to conform prior to 9th of January 2025 (early
adopter)
On track to conform by 9th of January 2025

Won’t conform by 9th of January but will have an action plan to

address gaps by 2026
20.9% Not intending to comply

Don’t know

35.3%

Internal Audit Benchmarking – Part One December 2024 16

Conformance with the Internation Professional
Practices Framework (2025)

Filter Already On track On track Won’t Not Don’t

conforming (before (by 9th conform intending know
9th Jan) Jan) by 9th to comply
Jan

All data 1.4% 23.3% 35.3% 20.9% 2.3% 16.7%

Financial 1.5% 39.4% 39.4% 9.1% 1.5% 9.1%

services
Local 0 9% 37.3% 31.3% 1.5% 20.9%
Authorities
Not-for profit 0 25.9% 29.6% 25.9% 7.4% 11.1%

Private sector 1.1% 35.8% 33.7% 12.6% 2.1% 14.7%

Public sector 1.9% 12.4% 38.1% 26.7% 1% 20%

Internal Audit Benchmarking – Part One December 2024 17

Appendices
Appendix 1: Methodology
• The survey was open between the 1st of August and 14th of October
receiving a total of 216 completed responses.
• The survey uses a combination of qualitative and quantitative methods
questions.
• This survey will be repeated in order to identify trends, but also assess
the impact of any actions that are taken by the Chartered IIA to
champion and lead the profession.
• All survey responses are anonymous, and confidentiality is assured.

Internal Audit Benchmarking – Part One December 2024 19

Appendix 2: Sector Breakdown
What is the sector of the organisation(s) • 44.4% provided internal audit for
you provide internal audit for? Tick all the private sector, 48.6% provided it
that apply
for the public sector and 12.5%
provided it for the not-for-profit
Not-for-profit 12.5%
sector.

• Filtering the data by CAE’s only

Private
Public 48.6%
Public saw 49% providing internal audit
Not-for-profit

for private sector, 36% for the

Private 44.4% public sector and 19% for the not-
for-profit sector
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Internal Audit Benchmarking – Part One December 2024 20

Appendix 3: Industry breakdown
• Participants provided internal audit services for a What Industry do you provide internal audit
broad range of industries. 31% provided it for services for? Tick all that apply
local authorities, and 30.6% provided it for Other (please specify): 5.1%
Tourism 1.4%
Financial services. Technology 4.2%
Service Industries 1.4%
• 62.5% of private sector employees provided Sciences/Research
Retail
0.9%
3.7%
Public sector – Other government agency
internal audit services to the financial services Public sector – Central Government
6.9%
10.6%
Public sector – Fire and police services 6.5%
• 60.95% of public sector employees provided Public sector – NHS (including ambulance CCGs) 2.3%
Public sector – Local authorities 31.0%
internal audit services to the local authorities Professional Services / Consultancy 2.8%
Manufacturing 3.7%
Housing 8.8%
• 40.74% of the not-for-profit sector employees Financial Services 30.6%
Energy 5.1%
provided internal audit services to the Housing Education 8.8%
Defence and security 0.9%
industry, 37.04% to the education industry and Creative 1.4%
Construction 4.6%
33.33% to the charity sector Charity sector 6.0%
Agriculture 2.3%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Internal Audit Benchmarking – Part One December 2024 21

Appendix 4: Organisational size
What is the approximate / average size of the organisation(s)
that you work for across UK and Ireland? • 35.6% of the participants worked for
0.5% 0.0%
an organisation of more than 1,000
Less than 10
5.1% employees
employees, but less than 5,000.
7.9% Less than 50
20.4%
employees

50 to 150 • And c75% worked in organisations

employees
13.0% 151 to 500
employees
over this size.
• Smaller organisations of less than 50
501 to 999
employees
17.6%
More than 1000
employees
employees accounted for only c13%
More than 5000
employees
35.6%
More than 10,000
employees

Internal Audit Benchmarking – Part One December 2024 22

Appendix 5 – Geographic spread
• 36.6% of respondents to the survey What location of the UK and Ireland do you perform most of
your internal audit work? Tick all that apply
indicated that they performed their internal
Ireland 6.5%
audit work in London Northern Ireland 3.7%

• 21.8% in the South-West of England and West Midlands 15.7%

Wales 12.5%
20.8 in the South-East of England
South West England 20.8%

• 41.25% of CAE responses indicated that South East England 21.8%

Scotland 13.0%
they performed their internal audit work in
Republic of Ireland 5.1%
London North West England 17.1%

• 57.58% of respondents working in the North East England 15.3%

Northern Ireland 5.1%

financial services said they delivered their
London 36.6%
internal audit work in London East Midlands 14.8%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%

Internal Audit Benchmarking – Part One December 2024 23

Thank
you
The analysis and presentation was prepared and authored by Mamun Madaser
[email protected]