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3a 9 Working With Audit Committees

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Working with the audit committe for the internal auditors is a challenge. Here are some tips ...

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3a 9 Working With Audit Committees

  1. 1. Good Internal Audit Practices & Working with Board Audit Committee
  2. 2. <ul><li>Visible direction setting / Image building </li></ul><ul><ul><li>Vision Statement </li></ul></ul><ul><ul><li>Mission Statement </li></ul></ul><ul><ul><li>Quality Policy Document (ISO 9002 Certification) </li></ul></ul><ul><ul><li>Divisional Motto </li></ul></ul><ul><ul><li>Charter / Role - Purpose, Authority & Responsibilities </li></ul></ul><ul><li>Structured Organisation / Reporting - Guest </li></ul><ul><li>Audit Pool </li></ul>Good Internal Audit Practices EIDP Management Audit Value Addition & Quality
  3. 3. <ul><li>Quality Audit Systems </li></ul><ul><ul><li>Audit Process Flow </li></ul></ul><ul><ul><li>Structured Documentation </li></ul></ul><ul><li>Comprehensive Audit Coverage ( 1 & 2 ) </li></ul><ul><li>‘ Control Awareness’ programmes for Auditees </li></ul><ul><li>Seminars & Workshops </li></ul><ul><li>Support Auditors Meet / Feed back session </li></ul>Good Internal Audit Practices EIDP Management Audit Value Addition & Quality
  4. 4. <ul><li>Effective Use of Computers </li></ul><ul><ul><li>Automated Audit Administration </li></ul></ul><ul><ul><ul><ul><li>MAP-EMS </li></ul></ul></ul></ul><ul><ul><ul><ul><li>WEBMARS </li></ul></ul></ul></ul><ul><ul><li>Diagnostic Audit Software tools </li></ul></ul><ul><ul><li>Data extraction & analysis tools </li></ul></ul><ul><ul><li>Management Audit Home Page on Intranet </li></ul></ul><ul><li>Practice of IIA - Standards </li></ul>Good Internal Audit Practices EIDP Management Audit Value Addition & Quality
  5. 5. <ul><li>Composition of Committee </li></ul><ul><li>Meetings </li></ul><ul><ul><ul><li>Frequency </li></ul></ul></ul><ul><ul><ul><li>Agenda </li></ul></ul></ul><ul><ul><ul><ul><li>Annual Highlights (Current year) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Audit Plan / Financials (Subsequent year) (IV Quarter) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Detailed Report (Previous year) (I Quarter) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Status update & Special Audit Areas (II & III Quarter) </li></ul></ul></ul></ul><ul><ul><ul><li>Effective participation by Business Group Heads / </li></ul></ul></ul><ul><ul><li>Vice Presidents </li></ul></ul>Working with Board Audit Sub-Committee EIDP Management Audit Value Addition & Quality
  6. 6. <ul><li>Co-ordinating & facilitating role of Internal Auditor </li></ul><ul><li>Meeting the requirements / expectations </li></ul><ul><ul><ul><li>Internal Controls aiming at </li></ul></ul></ul><ul><ul><ul><ul><li>Reliable information </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Compliance with Policies, Laws & Regulations </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Assets Safeguarding </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Economical / efficient use of resources </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Accomplishment of established objectives </li></ul></ul></ul></ul>Working with Board Audit Sub-Committee EIDP Management Audit Value Addition & Quality
  7. 7. <ul><ul><ul><li>Corporate Code of Conduct audits </li></ul></ul></ul><ul><ul><ul><li>Financial Reporting Process </li></ul></ul></ul><ul><ul><ul><ul><li>Significant Risk areas in the Financial Reporting </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Processes </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Opportunity for any fraudulent financial reporting </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Warning signs of potential problems ahead </li></ul></ul></ul></ul>Working with Board Audit Sub-Committee EIDP Management Audit Value Addition & Quality
  8. 8. <ul><li>Reviewing, approving Internal Auditing Charter </li></ul><ul><li>(Purpose, authority, responsibilities, reporting relationships) </li></ul><ul><li>Reviewing Plans & Budget </li></ul><ul><li>Reviewing activity report of IA periodically </li></ul><ul><li>Reviewing Audit Results </li></ul><ul><li>Requesting specific Audit Projects </li></ul><ul><li>Requesting Quality assurance reviews </li></ul>Audit Committee’s Oversight responsibilities with respect to IA Function EIDP Management Audit Value Addition & Quality
  9. 9. <ul><li>Annual one time audit methodologies redundant - </li></ul><ul><li>Effective Audit cycle determination </li></ul><ul><li>Continuous auditee feed back mechanism for an effective </li></ul><ul><li>frequent reporting </li></ul><ul><li>Ensuring involvement of Sr.Business Group Managers in the Audit </li></ul><ul><li>Process </li></ul><ul><li>Audit Team constitution - skil profile management </li></ul><ul><li>Holistic approach rather than an isolated unit specific </li></ul><ul><li>approach - Audit by different Audit Teams </li></ul><ul><li>Frequent interaction, effective discussion - lead to </li></ul><ul><li>aiming at perfection - From Repeated deficiencies to zero’ </li></ul><ul><li>defect situation - convincing ability and working together </li></ul><ul><li>with auditees </li></ul>Challenges for IA EIDP Management Audit Value Addition & Quality
  10. 10. Thank You

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