Update on The IIA And The State
of The Global Profession
Richard F. Chambers, President & CEO
The Institute of Internal Auditors
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Overview
• The Global IIA Footprint in 2015
• The Global Headquarters Update
• Key Trends in The Global Profession
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The IIA Global
Footprint in 2015
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Source of Data
1
3
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Global
Membership
Data
(February
2015)
Global
Financial
Reports
(2014)
2
Global
Certification
Data
(March 2015)
4
Annual
Institute Activity
Reports (2015)
The Global IIA in 2015
180,000+
170
106
159
MEMBERS
COUNTRIES
INSTITUTES
CHAPTERS
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Institutes by the Numbers
By Region
By Associated Organization
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Members By Regions
February 2015
Region
Institutes
Members
Africa
24
13,291
Asia/Pacific
18
30,775
Central/South America
18
13,254
Europe
39
48,431
Middle East
7
6,000
North America*
2
72,586
Members at Large
N/A
1,908
Worldwide Total
108
186,245
*North America includes US, Canada and chapters in Caribbean
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Members by Primary Language
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5-Year Regional Membership
Trends
+ 5%
+ 21%
+ 16%
- 2%
+ 10%
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- 1%
5-Year Global Membership Trend
+16,000 members
+9%
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Global Certifications & Designations
March 2015
CIA: 130,000
CRMA: 14,200
CCSA: 6,700
CFSA: 6,200
CGAP: 3,900
QIAL: 45
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2014 Global Financial Position
•
•
•
•
$138.9 million in global revenue, 3% increase
$11.4 million of net contribution, -10% increase
$151 million in total assets, 10% increase
$110.2 million in net assets, 10% increase
*Combined statistics from Institutes, NA Chapters, and IIA Global HQ for FY ending in 2014
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Top Revenue Components
Worldwide
Seminars
& Conferences
46%
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Membership
32%
Global
Certifications
7%
Development of the Profession
(% of Countries in Each Region)
Source: 2014 Activity Reports
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IIA Global
Headquarters Update
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2014 Was a Year of New Initiatives
• Since the 2014 Global Council, IIA Global HQ launched:
•
•
•
•
•
•
•
•
•
The Qualification in Internal Audit Leadership (QIAL)
The Risk Resource Exchange
Internal Auditor Magazine’s Optimized Website
Prototypes for Future Global Services:
• Career Map
• The American Center for Government Auditing (ACGA)
Finalized MRA’s with 105 institutes
Hosted London International Conference
Exposed “IPPF Relook” recommendations
Facilitated a new Global Strategic Plan
Released 9 Research Foundation reports and 7
educational products & books
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In 2015 – More New Initiatives
• We Plan to Launch:
–
–
–
–
–
International Chapter Program
Global Thought Leadership Series
IIA Global SmartBrief
Part 1 CIA Reciprocity
ACCA Challenge
• We also Plan to:
– Introduce the Self-directed Learning
Platform for Institutes
– Pilot Global Application for Career Map
– Craft the African Development Initiative
– Host the International Conference in
Vancouver
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IPPF: Enhancements
• Addition of:
– The Mission of Internal Auditing
– The Core Principles for the Professional Practice of Internal Audit
– Capability to produce Emerging Issues content (not part of IPPF)
• Introduction of:
– Implementation Guidance (replaces/enhances Practice Advisories)
– Supplemental Guidance (replaces/enhances Practice Guides)
• Removal of Position Papers from IPPF
• Renaming Key Element:
– Strongly Recommended to Recommended
– (no change to Mandatory elements)
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The Revised IPPF
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IPPF Enhancements: Next Steps
3/2015
5/2015
7/2015
7/2015
IIA Global Board Approval
Final Report – Available for Translation
Final Report – Issued
Proposed Launch IPPF (Vancouver)
7/2015 – 12/2016
Implementation and conversion activities
For more information: www.globaliia.org/NewFramework
For more information: iia-exposure@theiia.org
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CBOK 2015: Practitioner
Survey Update
• Over 14,500 responses
– 2,586 CAEs and 1,457 Directors / Sr. Managers
– 3,725 Financial Services; 871 Public Sector
– 2,737 NOT IIA members
7%
7%
• Regional participation
30%
Asia & Pacific
13%
Europe
North America
South & Central America
Africa
20%
Middle East
23%
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CBOK Key Dates - 2015 & 2016
• Practitioner Study
– Publish first results – Vancouver July 2015
– Data visualization tool launch – Q3 2015
• Stakeholder Study
– Study begins – Q3 2015
– Publish first results – Q1 2016
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Vancouver 2015
Join us in Vancouver next year for:
Mountains of Opportunities….
Oceans of Change
Visit www.ic.globaliia.org for details
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2014: Key Trends in
Internal Audit
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2015 Global Survey Demographics
• Conducted in
Collaboration with
CBOK, March 2015
– 7th consecutive year
– Nearly 70% public/ private
companies
– Over 3900 responses from
heads of internal audit and
audit directors
• Geographic Distribution
–
–
–
–
–
–
• Key Industries
–
–
–
–
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29% Europe
22% North America
13% Latin America
23% Asia Pacific
7% Africa
7% Middle East
Data as of 27 March 2015
30% Finance and Insurance
14% Manufacturing
8% Public Administration
5% Health Care
Preliminary Thoughts from the
CBOK/Pulse Data
• The resource outlook is strong
• The profession’s focus remains diverse
• More emphasis is needed to audit at “the speed of
risk”
• Talent profiles are continuing to evolve
• The emphasis on quality assurance is lagging
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Outlook for Internal Audit
Resources Remains Strong
• Budgets:
Change from 2014-2015
Overall
Increase
Stable
Decrease
40%
48%
12%
• Staffing:
Changes Experienced and Projected
Increase
Stable
Decrease
2014-15
29%
57%
12%
2015-16
33%
59%
5%
Source:“The
The Pulse
Global of
Pulse
Internal Audit
Conducted
in collaboration
with the 2015 Common Body of Knowledge Study, © 2015 The IIA and The IIA
Source:
the of
Profession:
©Survey
2014 The
IIA Audit
Executive Center
Research Foundation. All rights reserved. No part of this data may be copied, reproduced or otherwise disseminated without explicit permission from The IIA.
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Despite Resource Growth –
Concerns remain
• Sufficiency of funding for internal audit compared to
responsibilities?
– Not sufficient at all – 14%
– Somewhat sufficient – 52%
– Completely sufficient – 31%
• In addition – 40 percent have used a third-party
provider to augment staff
• 28 percent have formal or informal rotation programs
Source: The Global Pulse of Internal Audit Survey Conducted in collaboration with the 2015 Common Body of Knowledge Study, © 2015 The IIA and The IIA
Research Foundation. All rights reserved. No part of this data may be copied, reproduced or otherwise disseminated without explicit permission from The IIA.
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2015 Audit Plans Continue to
Diversify to Address Key Risks
Other 9%
Corporate Governance 6%
Operational
24%
Business Strategy 11%
Compliance/
Regulatory 15%
Fraud 4%
Risk Mgt
Effectiveness 12%
Information
Technology
8%
Financial 10%
Source: The Global Pulse of Internal Audit Survey Conducted in collaboration with the 2015 Common Body of Knowledge Study, © 2015 The IIA and The IIA
Research Foundation. All rights reserved. No part of this data may be copied, reproduced or otherwise disseminated without explicit permission from The IIA.
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More Emphasis Needed to
Audit at the “Speed of Risk”
• Only 48 percent rely on comprehensive risk assessments
by internal audit
– 18 percent on management’s risk assessments
– 26 percent on focused risk assessments
• When developing the internal audit plan:
–
–
–
–
21 percent develop once per year – do not update
43 percent develop and update 1-2 times per year
18 percent develop and update 3 or more times
Only 15 percent consider their plans “highly flexible”
• Only 21 percent “continuously” assess risks
Source: The Global Pulse of Internal Audit Survey Conducted in collaboration with the 2015 Common Body of Knowledge Study, © 2015 The IIA and The IIA
Research Foundation. All rights reserved. No part of this data may be copied, reproduced or otherwise disseminated without explicit permission from The IIA.
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Talent Profiles are
Continuing to Evolve
SKILLS BEING RECRUITED
RATE
1
Analytical/critical thinking
66%
2
Communication
53%
3
Risk Management Assurance
42%
4
Accounting
42%
5
IT - General
38%
6
Industry Specific Knowledge
37%
7
Data Mining and Analysis
33%
Source: The Global Pulse of Internal Audit Survey Conducted in collaboration with the 2015 Common Body of Knowledge Study, © 2015 The IIA and The IIA
Research Foundation. All rights reserved. No part of this data may be copied, reproduced or otherwise disseminated without explicit permission from The IIA.
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The Emphasis on Quality
Assurance is Lagging
• How developed is your Quality Assurance and
Improvement Program?
– 28% – non-existent or ad hoc
– 34% – in the process of development
– 33% – well-defined; including an external
assessment
Source: The Global Pulse of Internal Audit Survey Conducted in collaboration with the 2015 Common Body of Knowledge Study, © 2015 The IIA and The IIA
Research Foundation. All rights reserved. No part of this data may be copied, reproduced or otherwise disseminated without explicit permission from The IIA.
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Questions?
The Institute of Internal Auditors
Richard Chambers, CIA, QIAL, CGAP, CCSA, CRMA
President & Chief Executive Officer
richard.chambers@theiia.org
@RFChambers
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