‘Tis the Season to be Internal Audit Planning

As the holiday season is rapidly approaching, good tidings are regularly shared as should be the case.  It is time to be joyous and celebratory for the year that was and hopeful for the year that shall come.

It is also a time for Internal Auditors to take stock in their year that was and plan for the year that shall come.  I presume most Internal Audit Departments have completed their annual risk assessment, are trying to wrap up any remaining items from the 2010 Internal Audit schedule, and are putting together their 2011 Internal Audit Plan.

Here are some questions I recommend Internal Auditors ask themselves:

• How has the economy impacted the audits I complete?
• How responsive is my audit plan to changes in risks?
• How was the 2010 plan better than the 2009 plan and how is 2011 going to improve upon 2010?
• What were my significant accomplishments in 2010?
• Were these accomplishments significant to only me or did they have a profound impact on the company?
• What significant accomplishments are going to be made from the 2011 audit plan?
• How is the 2011 audit plan going to enhance the strategic relevance of Internal Audit?

The easiest thing to do is keep everything the “same as last year” - and there could be logic in it like... the economic conditions, staffing shortages, resource constraints, regulatory requirements, and so on.  But, the CEO can’t go to the Board and say "the company's 2011 strategic plan is the same as our 2010 plan" and neither should the Internal Auditor.  Take whatever flexibility you have and think strategic, think relevance, and think profound impact.  Successfully do that now and in 12 months the 2012 planning will become much more fun!

For more information on Internal Audit’s strategic role please review The 2010 Report on the Strategic Role of Internal Audit.