The ever-increasing demands of regulators, the importance of fraud prevention and the threat of reputational risk all have impacted the profile of the Chief Auditor. To understand these changing dynamics, we have analyzed the backgrounds of FTSE 100 Chief Auditors. We examined factors that include previous internal audit vs. non-audit experience, gender, diversity and tenure.
EXTERNAL VS. INTERNAL
The majority of chief auditors in this study have been external appointments. External appointments are over three times more likely to have had previous chief auditor experience than their internally promoted counterparts.
GENDER AND DIVERSITY
Twenty-nine percent of chief auditors in the sample are female compared with 26% of board members and 11% of Group CFOs in FTSE 100 companies.
Internally promoted chief auditors show a wider range of non-audit experience, having moved between different functions enroute to becoming chief auditor. Experience in finance, general management and operations roles is more commonplace among those internally promoted. Those externally recruited have greater experience in core roles; namely, audit and risk.
ACCOUNTANCY QUALIFICATION AND SECTOR EXPERIENCE
BIG 4 EXPERIENCE
PRE-APPOINTMENT TENURE OF INTERNALLY PROMOTED CHIEF AUDITORS VS. OTHER C-SUITE ROLES
The average pre-appointment tenure of internally promoted chief auditors is 17.6 years, longer than any other
TWO ROUTES TO THE TOP
There are interesting points of contrast between those internally promoted and those externally recruited to the chief auditor position.
THE MODERN CHIEF AUDITOR—EXPERIENCES & COMPETENCIES
Russell Reynolds Associates’ proprietary analysis informs our recommended points of competency emphasis.