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​Determining Internal Audit's ROI

Digital Jack Pelikan Jun 01, 2021

A departmental cost-benefit analysis can help internal audit measure and communicate its value.

​Like all departments in an organization, internal audit is an investment expected to yield a meaningful return. But unlike departments where return on investment (ROI) is easily calculated and traceable to the bottom line, internal audit is challenged to assess the inherently qualitative benefits of its work — such as compliance with laws, risk mitigation, process improvements, or providing management with peace of mind via assurance — against the quantitative costs it incurs, such as payroll, travel, software, and training expenses. 

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Jack Pelikan


Jack Pelikan is a senior director of internal audit at Caleres Inc. in St. Louis.