Review the market size analysis & output

Demand Study

Study Methodology

Module I
Market Size Analysis

  • In-depth exploration of market size and segmentation objectives and deliverables analysis

  • In-depth interviews conducted to assess and create a market size and segmentation model

  • This effort will also assist in the development of the Module II survey tool (identifying/ validating key questions)

Module II
Quantitative Survey

  • Martec will execute an online survey leveraging The IIA’s member and non-member contact list

  • Min of 1200 interviews from IIA database, supplemented with 300 respondents (outside panel) who claim to be internal auditors

  • Estimated length = ~15 to 20 minutes, ~1200 interviews

  • Specific sample plan/screening criteria TBD upon input from the IIA team

  • Output from this survey will drive key objectives and deliverables including support of the Module I market size, segmentation analysis as well as identifying key motivations, barriers, and behaviors for IIA audience

Module III
External Stakeholder

  • In-depth interviewing effort with key C-suite/ Board level executives in support of the external stakeholder objectives and deliverables

    • ~40 interviews will be conducted in this Module

    • Note: Incentives required to generate appropriate participation among this group of key decision makers

  • Interviews will also allow Martec to validate and pressure test portions of findings developed in the Module I and II exercises

Market Size Analysis

four approaches

Market Size Analysis Methodology

1. Internal Data Points

  • The first step in building the market size model yielded some broad starting point numbers: 

  • Martec interviewed key IIA leadership members for feedback and impressions on the market size

    • Estimates ranged from 160,000 to 500,000+ internal auditors in the US and Canada

    • Martec collected valuable insights into the following key topics:

      • Key segments/ industries

      • Government vs. private sector insights

      • Service provider industry role

      • In-source vs. outsource

      • Member penetration rates/ IIA growth insights

      • Titles/ roles

2. Secondary Research & Data Support

  • The second step of our approach supported the market size model with:

  • Supporting research to identify auditor counts, trends, etc.

  • Headcounts/ Employee totals by industry sector

    • Starting point data for auditor ratio analysis

    • Source: BLS data in the US and Labour and employment data in Canada (canadabusiness.ca)

  • Identifying titles (over 50+ variants)/ LinkedIn analysis

  • Identifying/ and recruiting experts for primary research and model pressure testing

3. Primary Research

  • Primary interviews with internal audit professionals in target industries allowed us to benchmark headcounts and ratios.

  • Martec has completed ~35 interviews in support of the model development focusing on the following areas:

    • Validate audit department sizes

    • Create/ validate assumptions on audit to employee ratios

    • Develop/ validate industry segment variables

    • Develop insights around government/ public sector market size

    • Develop insights in support of services sector market size(e.g. Protiviti, PwC, etc.)

4. Fine Tune & Validate

  • Module I: Conduct additional primary research in support of ongoing model

  • Module II: (Quant Survey) to evaluate/ refine targeted data points

    • Company type, size and industry sector

    • Others, TBD

  • Module III: Stakeholder interviews to validate macro level findings, ratios, etc.

Based on our current analysis and modeling, we estimate the NAR internal audit population at ~230,000.

Market Size

The market is comprised of the following key segments:

  • Private Industry: ~130,000  (bottoms-up analysis)

  • Public sector/ Government: ~55,000 (primary research and separate model)

  • External Service Providers: ~45,000 (top down and bottom—up)

Next

IIA Segmentation Study