The North American Pulse Survey 2024 revealed that nearly 50% of internal audit functions operate with 1 to 9 FTEs, classifying them as small audit shops.
This statistic shows an important reality in our profession, that small audit teams aren’t the exception, but they are a significant part.
Having built an internal audit function from just 2 to over 45 FTEs globally, I can say from experience: I enjoyed being in a smaller team much more.
Why I Prefer Smaller Audit Teams
Focus on What Truly Matters: With limited resources, there’s no temptation to build an endless audit universe. Risk-based auditing ensures efforts are concentrated on what truly matters.
Stronger Teamwork and Camaraderie: In a smaller team, collaboration is natural. As Head of Internal Audit, I was directly involved in engagements, making the team more engaged as well.
Better Oversight and Quality: With fewer engagements per year, I had a clearer view of audit activities, leading to higher quality work and significantly less stress compared to overseeing 100+ engagements.
More Meaningful Relationships: In a smaller team, there’s more time for coaching, training, and open discussions, fostering professional growth.
Creative Use of Resources: With fewer in-house auditors, I became smarter about co-sourcing internal experts or leveraging external service providers when needed.
More Agility, Faster Decisions: Smaller teams can adapt audit plans quickly and adjust scope without bureaucratic delays.
Smarter Use of Technology: Tools like audit management systems and data analytics help optimize resources.
Less Bureaucracy, More Informal Collaboration: Fewer layers of approval mean faster execution and stronger team dynamics. The absence of excessive bureaucracy might be the most underappreciated advantage of smaller audit teams.
The importance of Small Audits
While large internal audit functions have their advantages, there’s something special about the efficiency, engagement, and impact of a small, well-run audit team.
The limitations that come with small headcount push audit leaders to be more strategic, more involved, and ultimately more effective.
Perhaps the most important lesson is that the size of your impact isn’t determined by the size of your team but by how you deploy your resources against the risks that truly matter.