GUEST BLOG POST
If you are an internal auditor, you know that time is always in short supply. Between regulatory demands, shifting risks, and the day-to-day responsibilities of maintaining independence and objectivity, finding ways to be more efficient isn’t just helpful, it is essential.
At the Audit Library, we work with audit professionals from across the country, many who lead small teams with limited resources. To help streamline your work and give you a fresh perspective on where time and effort might be better spent, we’ve compiled five practical steps to increase audit efficiency.
These aren’t vague platitudes like “work smarter,” they are actionable tactics that you can apply immediately.
Step 1: Track Your Time
What comes to mind when you hear the term “project efficiency?” Audit leaders should be able to clearly define project efficiency, and every member of the audit team should understand how it’s calculated, how to interpret the results, and how to contribute to improving them.
So, let’s break it down:
Project Efficiency = Actual Audit Project Hours ÷ Budgeted Audit Project Hours
When a project exceeds its budgeted hours, it pulls time away from other important work or requires overtime to stay on track. Projects completed under budget create valuable flexibility, allowing your team to take on more work within the same time frame.
To gain insight into efficiency, you need the right tools in place for budgeting, time tracking, and reporting. Once you have reliable budgeting and tracking in place, you’ll have real-time insight into your productivity. But what does it really mean to improve efficiency?
In short, it means getting more done with the time you have. Time is an internal auditor’s most valuable resource. Highly efficient auditors recognize this, eliminate wasted effort, and lead by example. Leaders instill this mindset in their teams. Individual contributors apply it daily to support the team’s success.
Step 2: Schedule with Efficiency in Mind
One of the fastest ways to improve audit efficiency is by assigning the right people to the right projects. Whether you are leading a team or managing your own workload, aligning skill sets with assignments can significantly boost both productivity and morale.
If you are an audit leader, take time to understand your team’s strengths. Assign projects strategically. For example, if someone has a background in accounting, assign them as lead contact for your financial statement audit. If you have an employee with a knack for uncovering fraud, have them perform fraud testing and monitoring procedures regularly. And if you have an outgoing personality on your team, make sure they have projects with lots of staff interaction. When employees work in their areas of strength, tasks are completed more efficiently, morale improves, and long-term productivity increases.
If you are not yet in a leadership role, knowing your own strengths is just as important. Advocate for yourself. Ask to be involved in projects that align with your interests and abilities. This will lead to better outcomes and help you grow your career in a meaningful way.
Once your team is running efficiently, use that momentum to develop new skills. Consider rotating assignments to give team members exposure to unfamiliar topics, and allow extra time for learning. This helps build depth, flexibility, and long-term value. And your team may learn some new passions as a result!
One of the best ways to develop your staff, or enhance your own skills, is to complete quality training that is relevant to your career. There are multiple organizations that offer great training specific to your needs, including the Audit Library and Internal Audit 360.
When you match the right people to the right projects, and invest in skill development, efficiency follows.
Step 3: Start Small… It Adds Up
With two major steps under our belt, let’s shift the focus to small changes. Significant improvements often begin with incremental improvements. Step 3 is all about focusing on simple changes that are easy to implement.
There are many ways to gain efficiency in small doses. Here are a few simple adjustments that can make a lasting difference over the course of the audit year:
- When sending audit requests, clearly communicate deadlines and follow-up dates. Limit interactions with auditees and provide space for them to reach out if they need help. This avoids unnecessary back-and-forth communication.
- Avoid distraction from your pinging inbox by setting a specific time each day for reading and responding to messages.
- Consider using a weekly to-do list instead of a daily one. This allows for more effective prioritization and creates space for deeper work on projects that take multiple days to complete.
- When it comes to reporting, less is more. Use direct language and shorten statements to make reports more readable and easier to act on. This often reduces time spent debating and discussing issues, and can lead to better adoption of audit recommendations.
- Avoid duplication of efforts! Keep your team informed about ongoing work within the audit function and clearly communicate with external auditors and consultants to reduce redundancy.
Small gains can add up significantly. Over the course of an audit plan year, these time savers can increase capacity, improve quality, and create space for deeper, more strategic work.
Step 4: The Power of Planning
One of the most important areas for building efficiency that lasts is the planning process. Audit efficiency means getting more done with the time available. That requires eliminating non-essential tasks and prioritizing those that deliver real results. One area that should never be minimized is planning. While it is impossible to know for sure, we estimate that an hour of thoughtful planning can save at least ten hours of fieldwork.
Here are key planning steps that should be part of every audit:
- Review the full audit program and make necessary updates
- Meet with leaders of the audit area to discuss the upcoming audit and gather their concerns, insights, and priorities
- Prepare a Preliminary Audit Plan (PAP) for each audit engagement
- Review prior audit reports and workpapers
- Review relevant policies, procedures, and other key documents that govern the audit area
- Examine staff rosters or organizational charts to understand the roles and responsibilities of those in the audit area
If you are an internal auditor who loves getting in the weeds right out of the gate, the planning process may not be your favorite part of the internal audit life cycle. We encourage you to give it your full effort and attention anyway, as the effort pays off. Many of the efficiency gains created by thorough planning are not obvious until you’re nearly done!
Even better, a strong planning process helps strengthen the auditor and auditee relationships. Going into an audit well-informed allows for more focused questions and deeper discussions. Rather than spending time explaining basic functions, audit clients are more likely to feel like valued collaborators. This leads to better conversations, greater cooperation, more meaningful findings, and improved outcomes. That is the true power of planning.
Step 5: For Real Improvement, Put in Real Effort
Real, lasting efficiency is not the result of a single tool or tip. It comes from discipline, clarity, and sustained effort.
Think of the most efficient person you know. Whether this is a peer, leader, or someone in your personal life, chances are they exhibit some of the following traits:
- Calm and composed, even under pressure
- Communicates clearly and concisely, with comfort in silence
- Courteous and respectful in all interactions
- Responds to calls or emails, but not necessarily immediately
- Follows routines and maintains consistent habits
- Rarely caught off guard by anticipating both problems and solutions
- Has strong awareness of time, what is on their calendar for the day, and when they need to leave for an event or end a meeting
- Delegates with confidence
- Minimizes complaints and focuses on solutions
- Prioritizes health, rest, and personal well-being
Now think of someone who struggles with efficiency. They may seem overwhelmed, disorganized, or reactive. They often talk about the improvements they plan to make, but delay action until some future milestone or external motivator.
Here is the key difference: efficient people do the work. They are not performing, over-explaining, or staying busy just to appear productive. True efficiency avoids busy work altogether. Working for the sake of working is the exact opposite of efficiency. So, the next time you’re working on a task, consider asking:
- Is this something that truly needs to be done?
- Is it necessary for me to do it personally?
- Does it need to be done now?
If the answer to any of these is “no,” then it may be time to shift focus. Prioritizing intentionally is the most effective way to improve efficiency over time.
The most efficient person you thought of earlier probably wasn’t born that way. They learned through trial, error, and years of practice. The same is possible for anyone. Start building strong habits across work, in your relationships, and with your health. Then watch your efficiency improve over time!
Efficiency Starts with Awareness
Internal audit efficiency isn’t about cutting corners or rushing through engagements, it is about being intentional with your time and creating systems that support your success. Each of these five steps may be small on their own, but together they can lead to major gains in productivity, quality, and job satisfaction. 
John Kaneklides and Olivia Whipple are founders of The Audit Library, a digital collection of internal audit documents, templates, and tools. They are also internal audit consultants specializing in the credit union industry.