Lean Auditing: Driving Added Value and Efficiency in Internal Audit

Appendix – Illustrative Kano Analysis Regarding Internal Audit

BOARD AND AUDIT COMMITTEE PERSPECTIVES ON VALUE ADD (ILLUSTRATIVE)

Seen to be value adding:

• Delivering the audit plan within the year;
• Delivering assurance over key concerns or areas of interest for the board/audit committee;
• Providing comfort over core control and compliance areas;
• Providing timely and tailored briefings on the position of the organization in relation to topical issues;
• Offering insights into emerging risks;
• Identifying themes and trends in audit findings;
• Being seen to be influential with senior management.

Seen not to add value:

• Failing to deliver the audit plan;
• Having a major issue occur in an area that was recently audited (e.g. “Why didn’t you spot that issue when you audited that area last year?”);
• Appearing un-influential with senior management (and expecting the board to do the running) or appearing in the pocket of management;
• Audit receiving negative feedback in a quality review or from a regulator or from the external auditor;
• Audit “Pushing the nuclear button” on an issue which proves to be relatively minor;
• Indications that management are not remediating audit recommendations;
• The CAE being unable to answer an obvious question when the matter is discussed at the board/audit committee.

SENIOR MANAGEMENT PERSPECTIVES ON VALUE ADD (ILLUSTRATIVE)

Seen to be value adding:

• Audit being on hand to do targeted work for some senior managers;
• Audit delivering advisory assignments that ...