Welcome to GAIN 2016 Benchmarking System

The leader in internal audit benchmarking and networking services since 1992!

Report Date: April 1, 2016

This GAIN Benchmarking Report was prepared exclusively for:

ABC Organization

Benchmarking Tier 1 Benchmarking Tier 2 Benchmarking Tier 3 Benchmarking Tier 4 Benchmarking Tier 5
ABC Organization Wholesale / Retail Revenues: $5 Billion to $15 Decentralized Universe
Billion

Terms and Conditions

This report contains confidential data and is for the exclusive use of your organization. Distribution to other companies is strictly prohibited. By
accepting this document you are consenting to be bound by an agreement between your organization and the Institute of Internal Auditors (The IIA).
Unauthorized reproduction or distribution of this document, or any portion of it, may result in severe civil or criminal penalties.

Your suggestions for improvement are always welcome and can be submitted via e-mail to [email protected].

Thank you for your continued participation in the GAIN benchmarking program. For more information, visit www.theiia.org/gain.
 Table Of Contents
Section 1: Demographic Information Page 1 Section 4: Internal Audit Staffing Page 27
Respondents by Tier Group ......................................................................................... Page 2 Internal Audit Staff Profile .......................................................................................... Page 28
Demographic Information: Financial ............................................................................. Page 3 Change in Internal Audit Staff Size ............................................................................ Page 29
Respondents by Expense Class................................................................................... Page 4 Summary of Professional Audit Staff by Function ...................................................... Page 30
Demographic Information: Employees ......................................................................... Page 5 General and IT Auditors as a Percentage of Total Auditors ....................................... Page 31
Respondents by Industry .............................................................................................. Page 6 Fraud and ESH Auditors as a Percentage of Total Auditors ...................................... Page 32
Organizational Demographics ...................................................................................... Page 7 Other Compliance Auditors as a Percentage of Total ................................................ Page 33
Organizational Demographics ...................................................................................... Page 8 Presence of Dedicated IT Audit Group ...................................................................... Page 34
Sarbanes-Oxley ............................................................................................................ Page 9 Level of Education Sought for Auditors ...................................................................... Page 35
Level of Education Sought for Auditors Continued .................................................... Page 36
Section 2: Summary Information Page 10 Internal Audit Experience of Auditors ......................................................................... Page 37
Summary Information ................................................................................................. Page 11 Relevant Non-Internal Audit Experience of Auditors .................................................. Page 38
Summary Information ................................................................................................. Page 12 Industry Experience of Auditors ................................................................................. Page 39
Summary Information ................................................................................................. Page 13 Staff with Professional Designation as Percent of Total Staff .................................... Page 40
Summary Information ................................................................................................. Page 14 Percent of Staff with Professional Designations ........................................................ Page 41
Revenues and Assets Per Auditor.............................................................................. Page 15 Professional Designation Mix ..................................................................................... Page 42
Expenses and Employees Per Auditor ....................................................................... Page 16 CIA Designation ......................................................................................................... Page 43
Internal Audit Hiring Practices .................................................................................... Page 44
Section 3: Internal Audit Costs Page 17 Staff Turnover............................................................................................................. Page 45
Summary of Audit Costs ............................................................................................. Page 18 Training Hours ............................................................................................................ Page 46
Salary and Bonuses as % of Total Audit Costs (Excl. Benefits & Costs) ................... Page 19
Salary and Bonuses as % of Total Audit Costs (Incl. Benefits & Costs) .................... Page 20 Section 5: Sourcing Page 47
Benefits as a Percentage of Total Audit Costs ........................................................... Page 21 Sourced Staff Profile .................................................................................................. Page 48
Travel and Training as % of Total Audit Costs (Excl. Benefits & Costs) .................... Page 22 Costs of Purchased Services ..................................................................................... Page 49
Travel and Training as % of Total Audit Costs (Incl. Benefits & Costs) ..................... Page 23 Level of Sourcing........................................................................................................ Page 50
Total Costs per Auditor ............................................................................................... Page 24 What Internal Audit Activities are Sourced ................................................................. Page 51
Total Costs per Auditor (with and without Travel)....................................................... Page 25 Percentage of Audit Areas Sourced ........................................................................... Page 52
Travel and Training Costs per Auditor ........................................................................ Page 26 Sourced Hours and Fees ........................................................................................... Page 53
Fees For Purchased Services .................................................................................... Page 54
Future Reliance on Sourcing ...................................................................................... Page 55
 Section 8.2: Risk Assessments Page 88
Section 6: External Audit Page 56
Presence of Formal Risk Assessment Process for Internal Audit .............................. Page 89
External Audit ............................................................................................................. Page 57
Frequency of Internal Audit Risk Assessment ........................................................... Page 90
Total IA Hours Spent on External Audit ...................................................................... Page 58
Factors Influencing Risk Assessment ........................................................................ Page 91
External Audit Fees as Percentage of Total Revenues, Assets, and Expenses ........ Page 59
Presence of Engagement Level Risk Assessments................................................... Page 92
Engagement Level Risk Assessments ....................................................................... Page 93
Section 7: Internal Audit Oversight Page 60
Section 7.1: Internal Audit Oversight - Chief Audit Executive Page 61 Section 9: Audit Implementation / Life Cycles / Reporting Page 94
CAE Administrative Reporting Line ............................................................................ Page 62 Allocation of Audit Staff Time ..................................................................................... Page 95
CAE Functional Reporting Line .................................................................................. Page 63 Audit Life Cycle .......................................................................................................... Page 96
Title of Chief Audit Executive...................................................................................... Page 64 Audit Life Cycle - Reporting ....................................................................................... Page 97
Responsibilities of Chief Audit Executive ................................................................... Page 65 Tools and Techniques Utilized on Audits ................................................................... Page 98
Audit Engagement Reporting ..................................................................................... Page 99
Section 7.2: Internal Audit Oversight - Audit Committee Page 66
Audit Committee ......................................................................................................... Page 67 Section 9.1: Observations and Follow-Up Audits Page 100
Audit Committee Chair ............................................................................................... Page 68 Audit Follow-Up Activities ......................................................................................... Page 101
Audit Committee Chair ............................................................................................... Page 69 Days Outstanding for Open Items ............................................................................ Page 102
Private Sessions with Audit Committee ...................................................................... Page 70 Opinion Activities ...................................................................................................... Page 103
Presence of Audit Committee Charter ........................................................................ Page 71
Responsibilities of Audit Committee ........................................................................... Page 72 Section 10: Performance Management Page 104
Information Shared with Audit Committee .................................................................. Page 73 Presence of Formal Quality Assurance and Improvement Program ........................ Page 105
Professional Development of Audit Committee Provided by Internal Audit ................ Page 74
Section 10.1: Internal Quality Assessments Page 106
Evaluations of Audit Committee and Charter ............................................................. Page 75
Frequency of Internal Quality Assessments ............................................................. Page 107
Expertise Present on Audit Committee....................................................................... Page 76
Internal Quality Assessments ................................................................................... Page 108

Section 8: Risk Assessment and Audit Planning Page 77 Section 10.2: External Quality Assessments Page 109
Completion of External Quality Assessment ............................................................ Page 110
Section 8.1: Audit Planning Page 78
Obstacles of External Quality Assessment .............................................................. Page 111
Audit Performance ...................................................................................................... Page 79
Performance of External Quality Assessments ........................................................ Page 112
Percent of Audits Planned Actually Performed........................................................... Page 80
Results of External Quality Assessment Shared With ............................................. Page 113
Number of Unplanned Audits ..................................................................................... Page 81
Audits Per Auditor....................................................................................................... Page 82
Section 11: Subscribers By Industry Group Page 114
Allocation of Audit Plan............................................................................................... Page 83
Percent of Total Hours for Unallocated Time ............................................................. Page 84
Percent of Management Requests Completed........................................................... Page 85
Type of Audit Plan ...................................................................................................... Page 86
Years Covered By Audit Plan ..................................................................................... Page 87
 Summary Information(Decentralized)
Revenues
Revenues Total Employees Audit Staff Count Internal Audit Costs Total External Audit IA Costs AS % of EA Fees AS % of
Fees Revenues Revenues
Under $500 Million $224,506,835 1,753.00 5.33 $677,802 $507,675 0.5456% 0.3231%

$500 Million - $1 Billion $733,156,931 3,679.00 6.66 $1,272,707 $654,179 0.1714% 0.0856%

$1 Billion - $5 Billion $2,593,470,341 9,137.00 15.96 $2,566,129 $1,747,316 0.1098% 0.0693%

$5 Billion - $15 Billion $8,175,467,230 20,609.00 23.20 $3,954,246 $4,676,578 0.0487% 0.0579%

$15 Billion - $25 Billion $18,932,017,333 54,139.00 108.99 $20,923,758 $12,220,082 0.1019% 0.0608%

Over $25 Billion $49,035,782,025 65,452.00 115.60 $20,559,106 $21,374,746 0.0472% 0.0391%

Assets
Assets Total Employees Audit Staff Count Internal Audit Costs Total External Audit IA Costs AS % of EA Fees AS % of
Fees Assets Assets
Under $500 Million $169,237,167 1,942.00 5.71 $1,226,403 $643,802 34.8093% 12.5326%

$500 Million - $1 Billion $704,981,940 3,989.00 8.25 $1,625,838 $621,391 0.2372% 0.0906%

$1 Billion - $5 Billion $2,411,036,110 12,235.00 12.19 $1,617,423 $1,616,520 0.0774% 0.0738%

$5 Billion - $15 Billion $8,877,663,200 21,633.00 17.98 $2,811,129 $3,633,358 0.0356% 0.0415%

$15 Billion - $25 Billion $21,079,663,151 19,341.00 23.69 $4,321,164 $4,363,750 0.0211% 0.0211%

Over $25 Billion $286,496,585,502 30,928.00 78.07 $14,425,925 $10,788,792 0.0093% 0.0095%

Expenses
Expenses Total Employees Audit Staff Count Internal Audit Costs Total External Audit IA Costs AS % of EA Fees AS % of
Fees Expenses Expenses
Under $500 Million $272,603,092 2,175.00 8.84 $1,366,480 $540,310 0.5358% 0.1968%

$500 Million - $1 Billion $716,711,471 3,256.00 13.73 $2,664,255 $731,600 0.3688% 0.1005%

$1 Billion - $5 Billion $2,591,651,757 11,257.00 14.85 $2,301,356 $2,089,245 0.0909% 0.0887%

$5 Billion - $15 Billion $8,711,147,841 29,823.00 48.32 $8,861,934 $7,983,108 0.0921% 0.0956%

$15 Billion - $25 Billion $18,347,198,998 42,378.00 72.98 $12,265,326 $7,928,607 0.0698% 0.044%

Over $25 Billion $47,757,978,647 78,690.00 126.88 $22,724,155 $22,171,589 0.0535% 0.0404%

Page 13
Revenues and Assets Per Auditor

Page 15
 Summary of Audit Costs
Salary Bonuses Employee Benefits Travel Training Purchased Allocated or Other Total
Services Overhead Costs
Your Organization $1,000,000 $20,000 $40,000 $5,000 $5,000 $100,000 $0 $0 $1,170,000

Wholesale / Retail $1,072,191 $91,662 $295,883 $159,712 $27,338 $190,456 $67,654 $57,964 $1,949,487

Revenues: $5 $2,291,265 $233,939 $682,294 $180,569 $55,797 $340,107 $352,843 $134,692 $4,258,270
Billion to $15
Billion
Decentralized $2,698,563 $319,406 $707,434 $280,175 $50,390 $455,839 $411,370 $171,185 $5,071,686

Universe $2,154,874 $253,118 $576,426 $195,243 $42,938 $360,588 $302,277 $136,880 $4,001,958

Page 18
Internal Audit Experience of Auditors

Page 37
 Responsibilities of Audit Committee
Selects the external Reviews the external Reviews preliminary Reviews results of Approves the charter of Reassesses and approves
auditor and reviews the auditor's overall audit plan annual and interim engagements performed the internal audit activity a new internal audit
audit fees and the financial statements by external auditors, activity charter annually
engagement letter including management
letter
Your Organization 100% 100% 100% 100%

Wholesale / Retail 92% 90% 87% 92% 87% 59%

Revenues: $5 Billion to $15 83% 88% 84% 91% 97% 77%

Billion
Decentralized 80% 88% 86% 88% 88% 67%

Universe 82% 88% 86% 90% 91% 63%

Reviews and approves the Directly communicates Reviews evaluations of Ensures that engagement Reviews policies on Reviews financial
internal audit activity's with the chief audit risk management control results are given due unethical and illegal statements to be
plans and resource executive who regularly and governance processes consideration and receive procedures transmitted to regulatory
requirements attends and participates in as reported by the internal distributions of agencies
meetings auditors communications
Your Organization

Wholesale / Retail 87% 85% 82% 72% 62% 62%

Revenues: $5 Billion to $15 94% 98% 91% 67% 70% 70%

Billion
Decentralized 91% 92% 88% 72% 65% 72%

Universe 91% 92% 86% 69% 59% 70%

Participates in the Reviews the impact of new Reviews the organization's Considers evaluations of Review performance of Reviews proposed
selection of accounting or proposed legislation or insurance program the effectiveness and Chief Audit Executive compensation
policies regulations efficiency of information
systems
Your Organization

Wholesale / Retail 31% 62% 36% 64% 72% 28%

Revenues: $5 Billion to $15 27% 72% 36% 59% 80% 28%

Billion
Decentralized 24% 62% 29% 57% 76% 30%

Universe 31% 61% 31% 57% 74% 28%

Page 72
Type of Audit Plan

Page 86
Obstacles of External Quality Assessment

Page 111