Internal auditors are integral to organizational success, as they effectively support executives and board members in managing risk. To perform this job function to the highest standard, auditors should develop SMART goals.
Whether you’re a new or experienced internal auditor, understanding how to use the SMART system is critical to businesses. This post will explore various examples of SMART goals for internal auditors.
What is a SMART Goal?
The SMART (Specific, Measurable, Attainable, Relevant, Time-based) system empowers internal auditors to establish practical and effective goals.
Here’s a breakdown of each SMART component:
- Specific: Precision is key. Being laser-focused on details gives auditors a competitive edge and ensures clarity in objectives.
- Measurable: Maintaining the integrity of financial records demands measurable goals. Tracking progress is essential to prevent audits from becoming disorganized.
- Attainable: Balancing ambition with feasibility is crucial. Setting realistic goals ensures auditors can strive for success without setting themselves up for disappointment.
- Relevant: Aligning goals with personal values sustains motivation during challenges. Reflecting on core values guides auditors in setting objectives that resonate with their professional and personal ethos.
- Time-based: A well-defined timeline keeps auditors on track and focused on their objectives. Success requires consistent effort over time, and a robust timeline ensures goals remain achievable and actionable.
Why Every Internal Auditor Should Set SMART Goals
Internal auditors ensure that an organization’s internal controls, risk management processes and compliance measures are effective and in line with regulatory standards. To excel in their responsibilities and drive continuous enhancements, they need to establish SMART goals.
These goals provide a structured framework that helps auditors concentrate on specific areas such as maintaining accuracy in financial reporting, improving operational efficiency and preventing fraud.
By making sure that the goals follow the 5 criteria, auditors can align their actions more effectively with the organization’s objectives, resulting in tangible outcomes.
Moreover, SMART goals help auditors to assess their performance and track progress efficiently. With well-defined metrics and milestones, auditors can measure the effectiveness of their initiatives and pinpoint areas for enhancement.
Whether it entails conducting a certain number of audits within a specified period or reducing compliance risks by a specific percentage or enhancing audit quality through targeted training programs, SMART creates a structure for accountability and evaluation.
Types of SMART Goals for Internal Auditors
Professionals in auditing play a crucial role in safeguarding the integrity and adherence to rules within organizations, ensuring strong governance and risk management practices.
Developing SMART goals is vital for internal auditors who strive to maintain the highest standards. Let’s explore different types of SMART goals that internal auditors can focus on:
Audit Quality Goals
Enhancing audit quality is at the core of an internal auditor’s responsibilities. These goals may involve improving audit techniques, broadening the scope of audits or establishing QA procedures to ensure consistency and precision.
When setting specific objectives to enhance audit quality, auditors contribute to better decision-making and risk management within the organization.
Compliance Monitoring Goals
Upholding compliance with laws, regulations and internal policies is crucial for maintaining organizational integrity. Goals like these could about conducting regular compliance audits, identifying areas of non-compliance and taking corrective actions to address deficiencies.
Proficiency in compliance monitoring empowers internal auditors to effectively mitigate legal and reputational risks.
Process Efficiency Goals
Boosting operational efficiency and effectiveness enhances overall organizational performance. These goals may focus on pinpointing process inefficiencies, implementing improvements and streamlining workflows to optimize resource utilization and cut costs.
Professional Growth Goals
Continuous learning and skill development are key for internal auditors to keep pace with evolving risks and regulations.
Achieving these objectives could include gaining pertinent certifications or higher level qualifications, joining workshops or seminars and engaging in career advancement opportunities to improve skills and capabilities.
13 SMART Goals for Internal Auditors
Here are 13 examples of SMART goals for internal auditors:
1. Improve Reporting Capabilities
SMART Goal: “I’ll improve my reporting capabilities by creating a comprehensive report that outlines findings and recommendations. Within 6 months, I want to provide clear information that can be used to identify areas for improvement and develop best-practice policies.”
Specific: This goal outlines what you will do (create a comprehensive report) and the time frame (6 months).
Measurable: You could count the number of reports created or improved reporting capabilities.
Attainable: Writing a comprehensive report is absolutely doable within 6 months.
Relevant: Improving reporting capabilities makes it easier to identify areas of improvement.
Time-based: Goal completion is anticipated within 6 months.
2. Expand Knowledge Base
“I will read two books and attend one training related to internal auditing every month for the next 10 months. That way, I can stay current on the latest audit processes and regulations.”
S: You’ll read two books and attend one training about internal auditing monthly.
M: You can check how many books and training you’ve completed.
A: You may need to adjust your reading list to make sure it’s realistic, but this is generally reasonable.
R: It links to your primary objective of expanding your knowledge base.
T: You should expect success after 10 whole months.
3. Leverage Automated Technology
“I’ll investigate and implement automated technology to streamline the audit process, such as automated report generation and workflow management. I’ll have a plan within 6 months to complete processes faster and more efficiently.”
S: The statement is well-defined, detailing the objective, the type of technology to be used, and how long it will take.
M: Using automated technology will allow the company to measure how quickly and accurately it can complete processes.
A: Automated technology is a feasible solution to streamline the audit process.
R: This goal is appropriate because it seeks to improve the audit process by making it more efficient.
T: The SMART goal must be accomplished within 6 months.
4. Utilize Data Analytics
“My aim is to utilize data analytics within the audit process by the end of 5 months. I want to ensure we can use data-driven insights to identify risks, evaluate controls, and detect fraud.”
S: This is explicit as the person wants to use data analytics within their audit process.
M: Ensure you use data analytics correctly by following the three action items.
A: This SMART goal is doable when the necessary steps are taken to implement data analytics in the audit process.
R: Using data analytics is essential for internal auditors who want to ensure their work is accurate and efficient.
T: Goal achievement must be reached within 5 months.
5. Enhance Communication
“I plan to enhance communication between internal departments and stakeholders for three months. This will include several initiatives such as monthly meetings, regular reporting updates, and improved communication systems for better collaboration.”
S: The internal auditor plans to improve communication between internal departments and stakeholders.
M: Determine the number of monthly meetings conducted, regular reporting updates, and improved communication systems.
A: This is possible because the individual takes tangible steps to address communication issues.
R: The statement applies to the organization’s overall communication needs.
T: The goal has an end date of three months.
6. Expand Networking Opportunities
“To widen my expert network within the professional audit community, I’ll attend three industry-specific events in a year. I want to meet professionals in the same field, learn from their experiences, and build lasting relationships with them.”
S: The goal clearly explains what will be done and the deadline.
M: You can measure how many events you attended in a year.
A: This goal is achievable because attending three events yearly is achievable.
R: This is pertinent to networking and building meaningful connections with professionals.
T: One whole year is required to achieve excellence.
7. Promote Continual Learning
“I want to research and develop a list of relevant seminars or classes to stay current on the latest trends and developments in internal auditing. This list should include online and in-person courses, which I will present to my team by the end of the quarter.”
S: The scope of the goal is to develop a list of courses, seminars, and classes for internal auditing.
M: You tick off each course as you research and develop the list.
A: It is realistic for an auditor to compile a list of courses related to their field.
R: Continual learning is essential for internal auditors to stay updated with the latest developments in their field.
T: The SMART goal must be accomplished by the end of the quarter.
8. Increase Audit Effectiveness
“I’ll strive to make the audits conducted within our department as effective and efficient as possible in 7 months. I aim to have a streamlined and organized process with improved accuracy and quality of the results.”
S: The aim is to increase the effectiveness and efficiency of the audits.
M: You should be able to evaluate the results of the audit to determine its effectiveness.
A: This is definitely feasible with some guidance and direction.
R: Increasing audit effectiveness is a reasonable goal for the department.
T: Goal attainment should be anticipated after 7 months.
9. Improve Documentation Accuracy
“I want to increase the accuracy of our documentation by 10% within four months. I hope to streamline our processes, eliminate redundant tasks, and train our staff in the correct procedure.”
S: The goal is to increase the accuracy of documentation.
M: You have an exact percentage to aim for—10% improvement within four months.
A: This is achievable by streamlining processes and training staff on the correct procedure.
R: Proper documentation is essential for efficient internal auditing, so this is relevant.
T: There is a deadline of four months for this particular goal.
10. Promote Team Collaboration
“By the end of the month, I’ll set up a system of weekly meetings where each member of the internal audit team can discuss their progress and any areas of difficulty. I want to create an open, transparent, and collaborative environment where everyone can learn from one another.”
S: You’ll create weekly meetings for the internal audit team.
M: Track each meeting’s progress and topics discussed.
A: Have each team member be prepared and actively participate.
R: Team collaboration will help the team stay on track and work more efficiently.
T: In one month, you will have the meetings set up and ready.
11. Strengthen Internal Controls
“To promote increased transparency and reliability in financial reporting, I will strengthen internal controls within 5 months. I want to implement standard procedures and policies to protect the organization’s resources.”
S: The SMART goal is evident in its description of how to improve internal controls.
M: The person could measure the impact of the strengthened internal controls.
A: Enhancing internal controls is reasonable within the given timeline.
R: The goal is relevant to protecting the organization’s resources.
T: Five months are needed to reach lasting success.
12. Enhance Risk Assessment
“I want to become more efficient and proactive in assessing potential risks. I will develop a risk assessment methodology within four months that can be used to identify risk areas across all departments in our company.”
S: This goal details what you want to do (develop a risk assessment methodology) and the time frame for completion.
M: You could measure the progress of developing your methodology.
A: Creating a new risk assessment methodology is possible within four months.
R: Improving risk assessment processes is essential in any internal audit operation.
T: You have four months to complete this goal statement.
13. Review Financial Stability
“I’ll thoroughly review the organization’s financial stability and ensure its compliance with relevant regulations. I’ll update the audit committee about the organization’s financial stability every quarter to confirm its resources are used responsibly and efficiently.”
S: The goal outlines the expectations of a financial audit.
M: You can measure progress by quarterly reviewing and updating the audit committee.
A: This realistic goal outlines the necessary steps to ensure financial stability.
R: This is relevant to internal auditing and is vital for any organization.
T: Consider this an ongoing effort that you pursue each quarter.
FAQs for Internal Auditors
How do I tailor these SMART goals to suit my audit department’s specific objectives?
Tailor these SMART goals by conducting a thorough assessment of your department’s needs, challenges, and priorities. Then, customize the goals to directly address these aspects.
For instance, if your department struggles with communication, create a SMART goal focused on improving internal communication channels within a specific time frame.
What tools or resources facilitate the effective execution of these SMART goals?
Utilize project management software to track progress, data analytics tools to analyze findings, and industry-specific publications for insights. Also, consider investing in training programs to enhance team capabilities in areas relevant to the SMART goals. Regularly review and update these resources to ensure alignment with evolving goals and strategies.
How can I track and assess the progress and achievement of each SMART goal within the set timeline?
Establish clear milestones and KPIs for each SMART goal to track progress effectively. Utilize project management tools to monitor tasks, deadlines, and deliverables.
Schedule regular review meetings to evaluate progress, identify any obstacles, and make necessary adjustments to keep the goals on track. Celebrate milestones achieved to maintain motivation and momentum.
What methods ensure support and commitment from key stakeholders for SMART goals?
Engage key stakeholders early in the goal-setting process to ensure alignment with organizational objectives and gain their support. Clearly communicate the rationale behind each SMART goal and its potential benefits to the organization.
Provide regular updates on progress and involve stakeholders in decision-making processes when necessary. Address any concerns or objections promptly and transparently to maintain commitment.
How do I address potential resistance from team members or colleagues when implementing SMART goals?
Address potential resistance by fostering an open and inclusive environment where team members feel heard and valued. Communicate the purpose and benefits of each SMART goal, emphasizing how it aligns with departmental and organizational objectives.
Give adequate support and resources to help team members meet their goals, and recognize their efforts. Encourage feedback and collaboration to address challenges collectively and promote a sense of ownership.
