Many companies and various levels of government have internal audit departments. The problem many times with audits is the lack of resources. Analytics can play a bigger role in terms of expanding audits.
2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com
3. Agenda
Top Risk Areas for business 2020
Management and Risk
What is Internal Auditing?
Why should all organizations implement
Internal Audit?
Internal Audit and Risk Management
What is performance-based auditing?
Value for money
Can any organization set up internal audit
management and reporting?
Examples of Automation Tools/Videos
Use of python programming / audit
What’s next
4. Top Risk Areas for Businesses and the
Public Sector 2020
Source: https://www.prnewswire.com/news-releases/top-risk-concerns-for-business-leaders-in-2020-include-
talent-culture-technology-and-innovation-finds-protiviti-nc-state-survey-300973766.html
5. Management and Risk
More and more organizations are including risk management reporting as part of their overall
assessment of health - https://www.globenewswire.com/news-release/2019/12/12/1959797/0/en/Global-
6-75Bn-Third-Party-Risk-Management-Market-2019-2024-Analysis-and-Outlook-Report.html
Technology and changes to economic conditions are leading to more and more organizations to be
more agile
Privacy and securing of data is becoming a very big area for an organization, i.e. reputation -
https://www.marketsandmarkets.com/Market-Reports/data-protection-market-
214254944.html?gclid=Cj0KCQiAl5zwBRCTARIsAIrukdPjkUeYc_9nIzuzW1ZiuSEUv7MGtXz0yo-
mHv3b0oY8HpGk3TQRtyMaAh4REALw_wcB
6. Internal Audit
– What is it?
Source -
https://www.investopedia.co
m/terms/i/internalaudit.asp
7. Why should
Organizations
implement
Internal Audits
Safeguarding of assets
Better oversight and control of how money is
spent
Protection against cyber attacks
Performance based audit (value for money)
Board of Directors, Taxpayers and others are
demanding more oversight and accountability
on how dollars are spent
9. What is performance-based auditing
Source - https://chapters.theiia.org/vancouver-island/Events/Pages/Performance-Based-
Auditing.aspx
Auditing in the public sector means more than simply determining if controls are in place and regulations are being
followed. Public sector auditing, in many cases, means you will be dealing with varied constituents and often working in a
more public forum.
For new and experienced government and public sector auditors facing these unique challenges, this course will provide
new insight that includes assessing whether or not control frameworks are working to further an organization’s goals and
achievements. By learning to review an organization or department’s objectives and assess the risk to achieving them,
public sector auditors in this program will be able to effectively evaluate the organization and ensure that it is working
toward or maintaining a high level of performance.
Areas of focus:
• Management Issues, Concerns, and Functions
• Control Frameworks
• Risk-based Approach to Performance Auditing
• Value-for-money Approach to Performance Auditing
• Performance Measures
10. Value for Money
Source - https://www.iasplus.com/en-ca/standards/assurance/other-canadian-standards/section-ps-5400-value-for-money-auditing-in-the-
public-sector or https://www.niauditoffice.gov.uk/value-money-audit
An independent evidence-based investigation which examines and reports on whether economy, effectiveness
and efficiency has been achieved in the use of public funds.
Objectives
The primary objectives of value for money (VFM) audit are to:
• provide the Assembly with independent information and advice about how economically, efficiently and
effectively departments, agencies and other central government public bodies have used their resources;
• encourage audited bodies to improve their performance in achieving value for money and implementing
policy; and
• identify good practice and suggest ways in which public services could be improved.
An Organizations seeks to promote better value for money by highlighting and demonstrating to audited
bodies ways in which they could make improvements to realize financial savings or reduce costs; guard against
the risk of fraud, irregularity and impropriety; provide a better quality of service; strengthen and enhance their
management, administrative and organizational processes; and achieve their aims and objectives more cost-
effectively.
11. Can any
organization
undertake
Internal audit
and controls?
All organizations can set up internal control process and/or
reporting:
Triggers can be created based on pre-defined
measurement and/or control framework -
https://www.investopedia.com/terms/c/continuous-
auditing.asp
Performance Measurements can be set up as part of
measuring program outcomes against success criteria.
(AI and BI tools can be set up to help with performance
measurements reporting)
External Audit firms can work with organizations to set
up control frameworks, performance measurements, etc.
IT personal/Accounting teams can set up triggers with
databases and/or accounting software by establishing
audit reporting (i.e. error reports, reconciliations reports,
security access reports, etc.)
14. Government Audits
Funding – Government internal audits can play a vital role as part of re-shaping program spending -
https://www.nationalnewswatch.com/2020/06/22/auditor-general-says-she-needs-bigger-funding-boost-due-to-
pandemic-demands/#.XvHgHed7nQz
Role of audit as part improving government performance - https://www.semanticscholar.org/paper/The-role-of-
internal-audit-in-improving-the-of-The-Masui/e1d58c5cd172f0eafb9fc422087c157adbc36296
All major cities should have internal audit departments - https://vancouversun.com/news/local-news/city-moves-
closer-to-creation-of-independent-auditors-office . Smaller local and municipal governments should look at working
with accounting firms to provide audit. Analytics could play a big role in streamlining internal audit.
Challenges faced by the internal auditor - https://www.resolver.com/blog/the-challenges-facing-government-
auditors/
15. Key success with
Internal Auditing
Working with all stakeholders including
outside consulting to design the control
framework, measurements, triggers, etc.
Continuous review of audit programs to
ensure they are effective
Deploying the right tools (AI and Analytics)
Educating all levels of the organization on
Internal Audit and Risk
Acting on the findings as part of
safeguarding assets.
Government will need to be transformed -
https://www.slideshare.net/paulyoungcga/tr
ansforming-the-public-sector-canada
16. Other Sources
If you like to learn more
about trade and/or
other subjects as part of
your professional
learning and
development then feel
free to review my
material on
https://www.udemy.co
m/ (search Paul Young
CPA CGA