The role of internal audit has changed considerably. Organizations once saw this department as focused purely on compliance, but they now expect it to act as a strategic business partner that offers insights to protect and create value. In this new environment, traditional metrics like the number of audits completed or findings issued are no longer enough to show the function’s real contribution.

The industry is moving quickly toward performance-driven programs. The 2024 IIA Standards call on the internal audit function to be outcome-focused. To meet this standard, audit leaders need to adopt Key Performance Indicators (KPIs) that measure strategic impact, improve processes, and clearly communicate their team’s effectiveness to the audit committee and senior management. This article presents 10 essential KPIs to help modern audit teams demonstrate their value.

The two types of metrics

A Key Performance Indicator (KPI) is a quantifiable measure used to assess the success of an organization, employee, or process in meeting key business objectives. For an internal audit function, KPIs offer a framework for evaluating performance and showing value. These indicators fall into two main categories, each providing a different view of the team’s contribution.

• • Output-based KPIs: These are the traditional metrics that count operational activities and task completion. Examples include the percentage of the audit plan completed or the number of findings raised. While easy to track, these KPIs do not always reflect strategic impact. A high number of completed audits, for example, says little about the quality of the work or its effect on the organization’s risk profile.

• • Outcome-based KPIs: These modern metrics measure the audit function’s direct effect on business performance and risk reduction. Examples include the rate of repeat findings or stakeholder satisfaction scores. These KPIs are vital for proving value because they link audit activities to real business improvements, such as stronger controls or better operational efficiency.

A balanced approach that uses both output and outcome-based KPIs gives the most complete view of the audit function’s performance, balancing operational tasks with strategic value creation. This distinction is crucial for modern teams.

Criteria for selecting these internal audit KPIs

The KPIs on this list were chosen based on criteria that high-performing audit teams use to shift from being seen as a cost center to a value-creating partner. The selection process was guided by the following principles to ensure each metric is both meaningful and practical.

• • Strategic Alignment: Each KPI connects audit activities to wider organizational goals and risk management priorities. This ensures the audit function stays focused on what matters most to the business.

• • Actionability: The metrics provide clear insights that can be used to spot process bottlenecks, drive improvements, and help the audit team and its stakeholders make better decisions.

• • Stakeholder Relevance: The KPIs are designed to communicate performance and value to key stakeholders, including executive leadership and the audit committee. They translate audit activities into a language that resonates with the board.
    
    
  • Efficiency and Effectiveness: The selection offers a balanced view, with metrics that measure both how efficiently audits are performed and how effective their outcomes are in strengthening governance, risk management, and internal controls.

Overview of the 10 internal audit KPIs

Before we examine each metric in detail, this table provides a high-level summary. It outlines the main purpose of each KPI and what it measures, offering a quick reference for understanding how these indicators collectively show a full picture of internal audit performance.

The top 10 internal audit KPIs to track

Each of the following KPIs offers a different way to view the audit function’s performance. By tracking a mix of these metrics, audit leaders can get a complete understanding of their team’s contribution to organizational goals and find opportunities for improvement.

1. Audit plan completion rate

This is a fundamental, output-based KPI for tracking progress against the annual audit plan approved by the audit committee. It gives a high-level view of schedule adherence and is often a primary metric reported to the board. While important, it should be considered alongside other quality and outcome-focused metrics. A 100% completion rate means little if the audits are superficial or fail to address the most significant risks.

2. Audit cycle time

Audit cycle time is the total duration from the official start of an audit to the issuing of the final report. This KPI is a key measure of process efficiency. Tracking it helps audit leaders find bottlenecks in the audit lifecycle, whether in planning, fieldwork, or reporting. Long cycle times can make findings less relevant because the business environment may change before the report is delivered. By analyzing cycle times across audit types, leaders can streamline workflows and deliver insights faster.

3. Open vs. closed findings rate

This KPI tracks how effectively the remediation process is working by monitoring the number of open audit findings and how old they are. A high number of aging open findings can point to unresolved risks, a lack of management ownership, or poor follow-up. This metric directly measures whether teams put audit recommendations into action. A healthy rate shows that teams find and resolve issues quickly. 

4. Average time to close findings

While related to the open vs. closed rate, this metric offers a more specific measure of management’s response to audit recommendations. A shorter average closure time indicates strong management ownership and a proactive control environment. This KPI is most useful when broken down by the severity of the finding, department, or business unit. This metric directly addresses a key audit committee concern: ensuring internal audit focuses on significant threats. To measure it well, link the audit plan to the organization’s risk register. 

5. High-risk area coverage

This is an important KPI for any team wanting to show a risk-based audit approach. It measures the percentage of audit resources and plan activities focused on areas identified as high-risk in the organization’s enterprise risk register. This metric directly addresses a key audit committee concern: ensuring internal audit focuses on significant threats. To measure it well, teams must link the audit plan to the organization’s risk register.

6. Audit resource utilization

Resource utilization tracks how audit hours are split between chargeable audit activities and administrative or non-chargeable time. This metric is useful for capacity planning, justifying staffing levels, and optimizing team workload. By understanding how much time is spent on value-added activities, audit leaders can make better decisions about resource allocation. Modern audit management platforms provide tools for forecasting and tracking hours, offering clear visibility into team capacity and helping to manage workloads.

7. Rate of repeat findings

The rate of repeat findings measures the number of audits that find issues that were previously identified and supposedly fixed. This is a powerful outcome-based KPI, as a high rate of recurrence points to systemic control weaknesses or poor root cause analysis. It suggests that management might be treating the symptoms of a problem rather than the underlying cause. Tracking repeat findings within a system, changing the conversation from simple re-testing to a more strategic discussion about addressing foundational issues. Reducing this rate is a clear sign of the audit function’s effectiveness.

8. Stakeholder satisfaction score

This KPI measures the auditee’s perception of the audit process and the value delivered by the audit team, typically gathered through post-audit surveys. High satisfaction scores indicate that the function is viewed as a constructive partner. This metric is important for building credibility within the organization. A global survey found that only 16% of audit functions are viewed by stakeholders as “trusted advisors.” This KPI provides a tangible way to track progress toward that status.

9. On-time completion rate

While the overall plan completion rate gives a macro view, the on-time completion rate tracks the percentage of individual audits that are finished by their original deadline. This KPI offers more detailed insight into the accuracy of project planning, project management discipline, and stakeholder responsiveness. A consistently low on-time completion rate may indicate a need to improve scoping, scheduling, or communication with business units.

10. Number of audits requiring rework

Audits that need significant scope changes, extra fieldwork, or major revisions after the draft report is issued can be a sign of inefficiency. This KPI tracks the number of such cases. A high number may point to issues with the initial risk assessment, poor alignment with stakeholders during planning, or a lack of clarity in the audit scope. By monitoring this metric, audit leaders can refine their scoping processes to ensure clarity from the start, minimizing wasted effort.

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Best practices for implementing KPIs

Adopting a performance measurement framework is more than just picking metrics; it requires a structured approach to implementation.

• • Establish a baseline: Before setting targets, measure your current performance. This baseline provides the starting point from which to measure progress and set realistic goals.

• • Focus on outcomes, not just outputs: While output metrics like plan completion are needed, place an equal or greater emphasis on outcome-based KPIs. Prioritize metrics that show strategic value, such as a reduction in repeat findings or better stakeholder satisfaction.

• • Automate data collection: Manually tracking KPIs with spreadsheets can be time-consuming and prone to error. A centralized GRC system can be beneficial for modern audit functions. 

• • Communicate and review regularly: Performance data is only valuable if it is used. Report on KPIs to the audit committee and senior management regularly, usually quarterly. Use these discussions to analyze trends, address challenges, and find opportunities for improvement.

Using audit KPIs for strategic improvement

The right internal audit KPIs can be a valuable tool. They help shift the perception of the function from a compliance-focused cost center to a strategic partner that protects and creates organizational value. By moving beyond simple output metrics and adopting a balanced set of outcome-based indicators, audit leaders can clearly show their team’s impact on the control environment and business performance.

Tracking these metrics is the first step. The goal is to use the insights they provide to foster a culture of continuous improvement. This shift from reactive reporting to proactive, risk-based auditing can be supported by modern tools. A unified platform that connects audit, risk, and compliance provides the real-time data needed to move beyond checklists and truly demonstrate strategic impact.

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Frequently Asked Questions

Q.1 What is the primary purpose of tracking the 10 internal audit KPIs discussed in this guide?

A: The primary purpose is to shift the internal audit function’s focus from traditional output-based metrics like the number of audits completed to outcome-based metrics that demonstrate strategic value. These KPIs help prove the team’s effectiveness in strengthening controls, improving processes, and aligning with key business risks.

Q.2 How can a smaller audit team effectively implement these 10 internal audit KPIs?

A: A smaller team can start by selecting three to five of the 10 internal audit KPIs that are most relevant to their organization’s strategic goals. Key metrics to consider would be the rate of repeat findings, stakeholder satisfaction, and high-risk area coverage. Automating data collection with a scalable GRC tool  can also make implementation manageable.

Q.3 Should leaders treat all 10 internal audit KPIs as equally important, or should they prioritize some?

A: While all 10 internal audit KPIs are valuable, their importance can vary based on your organization’s maturity and strategic priorities. Leaders generally consider outcome-based KPIs, such as repeat findings and stakeholder satisfaction, more indicative of strategic value than output-based KPIs like audit plan completion.

Q.4 How do the 10 internal audit KPIs help in communicating value to the audit committee?

A: These KPIs translate audit activities into the language of business performance and risk management, which resonates with the audit committee and senior leadership. Instead of just reporting on activities, you can present data on how the audit function has reduced risk (e.g., lower repeat findings) and improved efficiency (e.g., faster finding closure times).

Q.5 Can technology like a GRC platform assist in tracking the 10 internal audit KPIs?

A: Yes, a GRC platform can be beneficial. Manual tracking in spreadsheets can be inefficient and may lead to errors. A platform automates data collection, provides real-time dashboards, and integrates information across audits, making it much easier to monitor, analyze, and report on the 10 internal audit KPIs accurately and consistently.