Internal audit teams are being stretched more than ever and they are having trouble finding the right people to fill the gaps, according to a new report.

Ernst & Young's Global Internal Audit Survey found that recruiting in key areas is a big problem. Industry, IT, fraud, and business and operational risk are the specialized skills most difficult to recruit and retain. More than a third indicated they didn't have staff trained in fraud prevention and detection. Other skill gaps included transactions, tax, major programs and contract auditing.

Also, the workload seems to have increased. According to the survey, half the respondents (49 per cent) indicated there had been an increase in internal audit function over the last 12 months. But once again, the skills shortage was making that more difficult with 38 per cent indicating they were operating at less than 90 per cent of budgeted head count. More than one in five had an annual turnover in excess of 20 per cent, and 36 per cent were reporting it at more than 15 per cent.