Internal Audit Quality

Chapter 17Quality and the Small Audit Shop

A small body of determined spirits fired by an unquenchable faith in their mission can alter the course of history.

—Mahatma Gandhi

Small internal audit shops face a number of unique challenges, because of their size and the common requirement for their internal auditors to wear multiple hats. Often small audit shops exist in organizations with limited staff and resources.

Nonetheless, small audit shops present a range of opportunities for internal auditors, and many people working in these environments prefer these challenges to larger or better-resourced internal audit functions. The key to success in a small audit shop is effective planning, flexibility, and great communication.

What Is a Small Audit Shop?

The IIA, in its Practice Guide: Assisting Small Internal Audit Activities in implementing the Standards (2011), defines a small internal audit function, commonly referred to as a small audit shop, as having one or more of the following characteristics:

• One to five auditors
• Productive internal audit hours below 7,500 a year
• Limited level of co-sourcing or outsourcing

The characteristics of a small audit shop will vary between countries and sectors, with some places considering 5 internal auditors to be a medium-sized activity, and others seeing 10 to be small. Contrary to the IIA's definition, some fully outsourced internal audit functions still consider themselves to be small. Regardless, most chief audit executives will have ...