One of the biggest challenges for internal audit management today is recruiting and retaining talent. This research report explores factors that are significantly related to internal auditor job satisfaction, including using internal audit as a training ground for management and offering bonuses based on performance.
Distinct differences are noted between publicly traded companies, private companies, service providers, and the public sector. In addition, the research project seeks to identify whether the judgment of internal auditors varies based on organizational policies or their sense of identification with their employer or profession.
The research report is based on 1,600 responses to a custom survey that was emailed to all members of The IIA in North America. In addition to asking questions related to job satisfaction, the survey also asked respondents to identify whether they felt conflicted between the work standards and procedures in their organizations and their ability to act according to professional judgment. Finally, respondents were asked to respond to case studies to explore whether their judgment would be affected by the characteristics of their organizations.
Eight key findings emerged:
- Lower staff ranks have lower levels of identification with their employers and their profession.
- Ten percent of all respondents indicate a sense of conflict between organizational procedures and their professional judgment as internal auditors.
- A higher sense of job satisfaction and a lower turnover intention are associated with organizations that use internal audit as a training ground for management.
- Chief audit executives (CAEs) who report functionally to the audit committee rather than to management are more positive about their workplaces.
- Internal auditors in organizations that offer bonuses are more positive about their workplaces.
- Public sector internal auditors experience higher organizational-professional conflict and are more likely to indicate that their budgets are inadequate.
- Respondents who are certified internal auditors (CIAs) have stronger identification with the internal audit profession.
- Internal auditors working for service providers have higher levels of professional identification and responded to some of the case studies differently compared to in-house auditors.
The results of this project will help management better understand factors that affect employee job satisfaction, their intent to remain with their organizations, and internal audit judgment.
Item Number: 10.5037