Question Performance on Issue 1 5 5 3 4 4 2 5 5 3 3 3 3 4 5 3 3 5 4 4 5 4 4 3 5 5 5 4 4 4 6 5 5 5 4 5 7 4 4 4 4 4 8 3 5 5 3 4 9 3 5 3 4 10 4 5 3 4 11 4 5 4 5 12 5 5 4 5 13 4 5 4 4 14 5 5 5 4 4 15 5 5 4 4 16 5 5 3 4 Importance of Issue 5 5 5 4 5 4 5 4 4 4 3 5 5 5 5 4 4 4 4 4 5 5 4 4 4 5 5 5 4 5 4 5 5 3 5 3 5 5 4 5 3 5 5 5 4 5 3 5 5 4 4 4 4 5 5 5 4 5 4 5 4 4 4 5 5 4 5 5 5 5 4 5 5 5 5 4

4 4 4 4 5 5 4 4 2 4 3 4 3 4 4 3

3 3 2 3 3 4 4 3 3 4 3 4 4 3 3 3

3 3 3 3 4 3 3 3 3 3 3 3 3 3 3 3

4 4 4 4 5 4 4 3 4 4 4 4 3 3 3 4

4 3 4 4 4 4 4 3 4 4 4 3 4 4 4 4

4 3 5 5 4 4 5 4 3 4 5 5 4 4 5 5

5 5 4 5 4 5 4 4 3 5 5 5 5 5 5 5

4 4 3 3 4 4 3 2 3 3 3 3 3 3 3 3

4 4 4 5 5 5 5 4 4 4 4 4 4 4 5 5

5 5 4 5 5 5 4 4 4 5 5 5 5 5 5 5

5 5 3 4 5 4 4 3 3 3 3 4 4 5 3 3

2 5 3 4 4 5 4 2 4 5 4 4 4 3 3

5 5 4 5 5 5 5 5 5 5 5 5 5 5 5 5

3 3 2 2 3 3 3 2 2 4 2 3 2 2 3

4 4 5 4 5 4 4 5 5 4 4 4 5 4 4

4 3 3 3 4 4 3 3 4 3.5 3.5 4 4 3.5 4 3.5

4.00 3.90 3.60 4.00 4.29 4.43 3.95 3.55 3.40 4.03 3.98 4.21 3.95 4.05 3.93 3.93

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

3 5 5 4 5 5 4 4 4 4 4 3 4 4 4 3

3 3 3 5 3 5 4 5 4 5 4 3 4 4 3 3

5 5 3 5 5 5 5 3 4 5 4 4 4 4 4 4

5 3 2 4 5 5 4 2 3 4 3 3 3 3 3 4

5 5 4 5 5 5 4 4 4 4 3 4 5 4 5 5

5 5 4 5 4 3 4 3 3 4 4 4 4 4 5 5

5 5 4 5 4 5 5 5 4 4 5 5 5 5 5 5

4 3 5 4 4 3 5 5 4 4 5 4 4 4 4 3

5 5 4 4 5 5 4 4 5 4 4 5 5 4 5 5

5 5 4 4 5 5 4 4 4 5 5 5 5 5 5 5

5 5 4 5 4 4 5 4 4 4 4 4 4 4 4 4

5 5 5 4 4 4 5 4 4 4 5 5 5 4 5 5

5 4 5 5 4 5 5 3 3 5 4 5 5 3 4.5 5 3 5 5 4 4 5 3.5 5 5 5 5 5 5 5 5 4 5 5 5 5 4 5 5 5 5 5 4 5 5 4 5

4 5 4 5 4 4 4 4 4 5 4.5 4 4 4.5 5 4.5

4.62 4.48 4.05 4.43 4.36 4.52 4.38 4.12 4.20 4.43 4.26 4.29 4.35 4.36 4.50 4.43

Fiscal Year 200X Year End Report Card Results

Following are the results from the 200X fiscal year end report card. Year end satisfaction surveys were disseminated to all CFOs, CEOs, CIOs and other members of management. The respondents were asked to rank; on a scale of 1-5, Internal Audit's performance on and the importance of sixteen different characteristics. The results below depict the weighted average of all responses received for a particular question as well as the total number of responses received for each rating. The Internal Audit department would like to thank all of those who took the time to respond and assist internal audit in continuing to improve the service and quality of the internal audit function. In cooperation with management these results will be used to recognize service and quality related issues and focus on particular areas to change or improve. The numbered bubble on the scale indicates the weighted average for all answers received. The italic numbers under each scale indicate the number of responses for that score. The figure above the scale indicates last years weighted average.

Performance on Issue
s Im pro v em low en t Av era Av ge era ge Go od

Importance of Issue

Av era Av ge era ge

llen t

Ne ed

Ex ce

low

der a Mo
4 4 4 5 4 6 4 12

1. Ability of the internal audit department to recognize and report internal control issues

LY: 3.86

4.00
3 4 4 10 5 6 1 0

LY: 4.54

4.62
3 2 5 15

1 0

2 2

2 0

Comments: "Excellent initiative on Y2K". "This is an area that Internal Audit can be instrumental in training and mentoring management on issues managers may not be aware of themselves". 2. Ability to follow up on, resolve, and close internal control issues
LY: 3.83

3.90
3 9 4 5 5 7 1 0

LY: 4.42

4.48
3 3 5 13

1 0

2 0

2 0

Comments: "Most often I have seen Internal Audit focus on the reporting process, less on follow-up and closing".

3. Participation in improving the business performance of the company

LY: 3.14

3.60
3 6 4 8 5 3 1 0

LY: 4.23

4.05
3 5 5 9

1 0

2 2

2 2

Comments: "The Internal Audit team is reactive in retrospective but getting better".

4. Ability of the internal audit department to gain respect of management Comments: "Probably management's responsibility". "Good follow through and delivery".

LY: 3.75

4.00
3 5 4 8 5 7 1 0

LY: 4.39

4.43
3 0 5 9

1 0

2 1

2 0

4.29

4.36

Ve ry
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Lo w

Be

Be

Hig h

te

Fiscal Year 200X Year End Report Card Results

4.29
3 2 4 12 5 7 1 0

5. Responsiveness of the internal audit department to fulfill requests for assistance

LY: 4.35

LY: 4.27

4.36
3 2 4 10 5 9

1 0

2 0

2 0

Comments: "Our experience is that responsiveness is excellent". "It used to be very high responsiveness, however this has diminished as demand has increased beyond resources available". 6. Overall professionalism and conduct of the internal audit department
LY: 4.33

4.43
3 2 4 8 5 11 1 0

LY: 4.31

4.52
3 3 4 3 5 15

1 0

2 0
LY: 3.80

2 0
LY: 4.34

7. Industry knowledge of the internal audit department

3.95
3 4 4 14 5 3 1 0

4.38
3 1 4 11 5 9

1 0

2 0
LY: 3.46

2 0
LY: 4.08

8. Utilization of best practices information in internal audit work conducted

3.55
3 8 4 7 5 3 1 0

4.12
3 4 4 8 5 7

1 0

2 2

2 1

Comments: "Internal Audit seems to focus on sharing information between divisions which is appreciated". 9. Ability of the internal audit department to integrate technology into the audit process to improve efficiency

LY: 3.37

3.40
3 3 4 9 5 7 1 0

LY: 3.92

4.20
3 3 4 9 5 7

1 0

2 0
LY: 4.08

2 0
LY: 4.41

10. Ability of the internal audit department to listen and respond appropriately

4.03
3 4 4 10 5 4 1 0

4.43
3 1 4 9 5 10

1 0

2 0

2 0

11. Integration of the internal audit department into the environment and culture

LY: 3.86

3.98
3 5 4 6 5 7 1 0

LY: 3.98

4.26
3 2 4 11 5 7

1 0

2 1
LY: 3.97

2 0
LY: 4.17

12. Materials and presentations at board and audit committee presentations

4.21
3 3 4 8 5 7 1 0

4.29
3 3 4 6 5 8

1 0

2 0
LY: 3.76

2 0
LY: 4.37

3.95
3 5 4 10
4.22

4.35
3 1 4 10
4.31

13. Effectiveness of 200X risk assessment process Comments: "This was excellent work!!"

1 0

5 4

1 0

2 0

5 8

4.36

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Fiscal Year 200X Year End Report Card Results

4.05
3 5 4 8 5 5 1 0

14. Quality and effectiveness of internal audit reporting tools

LY: 3.72

LY: 4.06

4.36
3 3 4 11 5 8

1 0

2 1
LY: 3.72

2 0
LY: 4.43

15. Overall value the internal audit department added to the company

3.93
3 5 4 7 5 6 1 0

4.50
3 2 4 6 5 12

1 0

2 2
LY: 3.76

2 0
LY: 4.32

16. Overall value the internal audit department added to your Region/Division

3.93
3 8 4 4 5 7 1 0

4.43
3 3 4 4 5 11

1 0

2 0

2 0

Comments: "This year there were several unusual issues with which internal audit was helpful". "I have had excellent experience with corporate personnel. Not so locally!" Average of all questions FY98: Average of all questions FY97:
3.95 3.80 4.37 4.26

3
200X
1999

Good Performance Unimportant

Performance on Issues

Good Performance Important

Poor Performance Unimportant

Poor Performance Important

1 Importance of Issues

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Fiscal Year 200X Year End Report Card Results

General comments received:

"I have seen a great change in Internal Audit over the past years. The department has changed from a reactive retrospective process organization to one which is more real time, pro-active and value added". "There is still more work necessary in the area of resolve and closure. It would be of much greater assistance to the divisions if the Internal Audit department could participate in solutions to Internal Audit issues and not just the identification and recommendation of solutions". "Very professional group, much more customer focus as opposed to enforcement oriented. "Staff exhibit strong, insightful industry expertise". "Light on benchmarking, process improvement and industry best practice sharing and mentoring". "Auditors need specialized knowledge for certain functions or they cannot understand the function or the impact and importance of their recommendations". "Very satisfied with the program. The findings follow up database that they are rolling out will be very helpful to ensure all audit findings are addressed". "We need to focus on key strategic areas and not administrative tactical issues". "There is a need to audit actual outcome along with policy or process. Have experienced a positive audit on process only to find that outcome did not match process - gave false sense of security". "There needs to be a better way to surface issues of inefficiency to add value or improve business performance. The audit process is great at digging into process details but at times misses the big picture". "Very good basic Internal Audit Department function".

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