Grant Thornton LLP’s fourth annual survey of more than 400 chief audit executives (CAEs) from U.S. organizations finds CAEs are facing the realities of a greater compliance burden. See the full survey: http://gt-us.co/1ijnAke

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Strategically
leveraging
compliance activities
2014 CAE SURVEY RESULTS

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Grant Thornton LLP surveyed more than 400 U.S.
chief audit executives (CAEs)…
Results =
CAEs are reprioritizing risk and making
difficult resource decisions due to rising
compliance requirements

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Compliance vs.
adding value

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36% of CAEs say they are unable
to devote resources to higher value
activities due to focus on regulatory
compliance

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77% of CAEs chose identifying
improvement opportunities as t he t op
area w here int ernal audit
organizat ions could add value if not
for t he const raint s of com pliance
requirem ent s

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Survey Finds: COST is the biggest
impact of regulation

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Due to heavy focus on regulatory
compliance activities, 53%
of CAEs indicate reduction in focus
on core internal audit areas such
as mitigating risk & stronger
corporate governance

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The way forward means
fullyutilizingexisting
resources
asacriticalpieceof
maximizinginternal
auditefficiency
andimpact

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Effectively leveraging technology
and data analytics

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CAEs slow to adopt internal audit
tech, likely due to reluctance to use
additional scarce resources
Only 29% of CAEs even use GRC/
internal audit specific tech

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CAEs that use technology resources are able to
leverage them across multiple functions

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60% of CAEs reported using
data analytics
to enhance the internal audit
function

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Where data analytics is used
the most
Performance measurement
Forensic analysis
Predictive analysis

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Topbenefitsderived

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One-to-many
approach

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Internal audit needs a
new approach to compliance
Compliance requirements continue to rise:
Dodd Frank
Affordable Care Act
PCI DSS
Anti-corruption regulations
Government contract requirements

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69% of CAEs listed increased cost as
the top impact of regulation on
their organization
…36% of CAEs say they are unable
to devote resources to higher-value
activities due to the focus on regulatory
compliance

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Compliance risk
ranks #1 ahead of strategic risk

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What is the one-to-many approach?
 Leverage control testing across multiple
compliance areas
 Test once to comply multiple times with various
standards
CAEs may be able to lessen the compliance
burden by satisfying requirements in a more
efficient and economical way

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…Only 54% found ways to implement the
approach
92% of CAEs believe they can
potentially apply one-to-many principles
for to up to 50% of their control testing

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Killing two or more birds with one stone is a
clear path to efficiency gains, although not
an easy one
Many CAEs believe that they must
silo control testing for accuracy

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T
h
e
T
A
L
E
N
T
g
a
p

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Talent plays a significant role within internal
audit—ensuring compliance & delivering value
40% of CAEs view
“talent quality or capacity”
as a barrier to delivering
greater value to their orgs

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CAEs rank building talent and skills #3 in
their goals for the next 12 months
(above ensuring compliance for key
regulations)

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Internal auditors are expected to have a wide range
of skills, but needs may be so specialized that it makes
sense to consider alternatives:
Learning programs administered
internally or externally

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Bringing
subject matter experts
from other parts of the business for
operational and strategic projects

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Co-sourcing with an outside
professional services firm

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Setting up a
special projects budget
for consulting services

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Putting it all together

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To create value out of compliance
activities, CAEs can
leverage technology and
data analytics
optimize their compliance activities
hire the right talent

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Warren Stippich
Partner and National Governance, Risk and
Compliance Practice Leader
Warren.Stippich@us.gt.com
Bailey Jordan
Partner and Southeast Region Governance, Risk
and Compliance Practice Leader
Bailey.Jordan@us.gt.com
Contact us
Want to learn more about strategically
leveraging compliance activities?
Teri Suzuki
Principal and Northeast Region Governance,
Risk and Compliance Practice Leader
Teri.Suzuki@us.gt.com
Priya Sarjoo
Managing Director and Central Region
Governance, Risk and Compliance Practice Leader
Priya.Sarjoo@us.gt.com
Shawn Stewart
Partner and West Region Governance, Risk and
Compliance Practice Leader
Shawn.Stewart@us.gt.com