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3a 4 Expectations Of Stake Holders


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Who are the stake holders for IA ? And what are their expectations ? That is the starting point....

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3a 4 Expectations Of Stake Holders

  1. 1. Value Add by Internal Audit Expectations of Stake Holders
  2. 2. <ul><li>Govt. Authorities </li></ul><ul><li>(Statutory Requirements) </li></ul><ul><li>Statutory Auditor </li></ul><ul><li>Share Holders </li></ul><ul><li>Board / Audit Committees </li></ul><ul><li>Sr Executive Management </li></ul><ul><li>Operational Management </li></ul>Risks, Controls, Corp. Governance, Compliance with statutes Value Adds (Bottomline / System Improvements) Corporate Masters Stake Holder focus
  3. 3. In the areas of Risk Assessment <ul><li>Avoid overlapping roles with other reviewing agencies </li></ul><ul><li>Understand the organisation’s culture and environment </li></ul><ul><li>Understand the Corporate Focus / Philosophy </li></ul><ul><li>Evaluate the present level of risk management process in the organisation </li></ul><ul><li>Improve company specific knowledge </li></ul>
  4. 4. Assurance Perspective <ul><li>Assessing Internal Controls </li></ul><ul><li>Assessment of Risks </li></ul><ul><li>Recommending Improvement of Corporate </li></ul><ul><li>Governance </li></ul><ul><li>Detecting & deterring frauds </li></ul><ul><li>Analysing the effectiveness of Policies & </li></ul><ul><li>Procedures </li></ul><ul><li>Assuring Compliance with Statutory </li></ul><ul><li>Requirements </li></ul>
  5. 5. Business Value addition <ul><li>What is value addition ? It differs from scenario to scenario </li></ul><ul><li>What are all other mechanisms / systems in place to look at this ? </li></ul><ul><li>Measure the benefits after implementation of the recommendations </li></ul><ul><li>Above all, take the customers along with you </li></ul>
  6. 6. Business Value addition… <ul><li>Analayse Operations for Efficiency & </li></ul><ul><li>Effectiveness </li></ul><ul><li>Evaluate emerging technologies </li></ul><ul><li>Identifying opportunities to save </li></ul><ul><li>Review controls over major Projects </li></ul><ul><li>Conduct Pre implementation reviews of computer systems to help anticipate problems </li></ul><ul><li>Suggest improvement to bottom line </li></ul><ul><li>Focus on Business reputation, Customer service, Environment, HR Practices </li></ul>
  7. 7. Business Value addition… <ul><li>Suggest improvents in the marketing related areas. </li></ul><ul><li>Audit the entire process rather than an organisational unit </li></ul>
  8. 8. Facilitation Role <ul><li>Help in formulating DOA document </li></ul><ul><li>Assist Business Divisions in SOP preparation & self audit processes </li></ul><ul><li>Create control awareness / Educate Executives on Internal Controls </li></ul><ul><li>Promote good governance in the organisation </li></ul>
  9. 9. On Audit Contribution <ul><li>Increase focus on preventive Audit </li></ul><ul><li>Eliminate controls in excess </li></ul><ul><li>Measure Results </li></ul><ul><li>Provide value recovery </li></ul><ul><li>Audit to be driven by achievement of stated objectives than a routine audit program </li></ul>
  10. 10. <ul><li>Make best use of ‘Resources’ provided </li></ul><ul><li>Sharpen dialogue with Top Management / </li></ul><ul><li>Directors </li></ul><ul><li>Realign to meet key stakeholders </li></ul><ul><li>expectations </li></ul><ul><li>Think & act strategically </li></ul>On Audit Management
  11. 11. <ul><li>Assess & Strengthen expertise for complex </li></ul><ul><li>business auditing </li></ul><ul><li>Leverage technology in high risk areas </li></ul><ul><li>Focus on enterprise risk management </li></ul><ul><li>capacities </li></ul><ul><li>Make your audit processes more dynamic </li></ul>On Audit Management…
  12. 12. <ul><li>Strengthen quality assurance processes </li></ul><ul><li>Adopt ‘Best Practices’ </li></ul><ul><li>Measure your enhanced performance </li></ul><ul><li>Simplify Systems & Procedures </li></ul><ul><li>Transform into a facilitation role </li></ul><ul><li>Be part of the main stream! </li></ul>On Audit Management…
  13. 13. <ul><li>Network with audit customers & build good relationship </li></ul><ul><li>Board & Audit Committee </li></ul><ul><li>Executive Management </li></ul><ul><li>Operating Management </li></ul><ul><li>External Auditors </li></ul>On Audit Relationships
  14. 14. Thank You