The internal auditing professional consulting approach
The Internal auditing professional Consulting Approach
Summary: The consultant takes the role of expert, and provides expert advice or assistance to
the client, with, compared to the facilitative approach, Organizations hire the services of
consultants for a number of reasons internal consulting groups are often formed around a
number of practice areas, commonly including: organizational development, process
management, information technology, design services, training, and development
Management consulting refers generally to the provision of business consulting services, but
there are numerous specializations, such as Internal audit consulting, information technology
consulting, human resource consulting, virtual management consulting and others, but
internal audit may provide consultancy as well as assurance work to an organization.
Management consulting indicates both the industry of, and the practice of, helping
organizations improve their performance, primarily through the analysis of existing business
problems and development of plans for improvement Consultancies may also provide
organizational change management assistance, development of coaching skills, technology
implementation, strategy development, or operational improvement services. Management
consultants generally bring their own, proprietary methodologies or frameworks to guide the
identification of problems, and to serve as the basis for recommendations for more effective
or efficient ways of performing business tasks.
In general, various approaches to consulting can be thought of as lying somewhere along a
continuum, with an 'expert' or prescriptive approach at one end, and a facilitative approach at
the other. In the expert approach, the consultant takes the role of expert, and provides expert
advice or assistance to the client, with, compared to the facilitative approach, less input from,
and less collaboration with, the client(s). With a facilitative approach, the consultant focuses
less on specific or technical expert knowledge, and more on the process of consultation itself.
Because of this focus on process, a facilitative approach is also often referred to as 'process
There are many different ways that internal auditing may be approached: some are
investigatory/ transactions-based while others move towards a systems approach. There is an
argument that the most efficient use of audit resources occurs where one concentrates on
reviewing systems as opposed to examining individual systems’ transactions. It is possible to
use force-field analysis to weigh up the factors that together define the actual audit approach
that is applied in any organization.
Internal auditing performed in many different ways and there are a variety of models that may
be applied to discharging the audit role. The organization will define its audit needs and this
will help to establish which types of audit services are provided. Moreover, an audit
department will contain different types of auditors who collectively discharge the audit
function. Internal auditing is about evaluating risk management and internal controls and this
should be a central theme in most audit work; internal auditors have toyed with providing a
form of internal consulting service for many years. The IIA standards now make it crystal
clear that internal audit may provide consultancy as well as assurance work to an
Professional Practices Framework suggests six types of consulting work:
1. Official appointments: planned and written agreement.
2. Informal engagement: routine information exchange and participation in projects,
3. Crisis services: temporary help and special requests.
4. Evaluation services: information to management to help them make decisions, e.g.
proposed new system or contractor.
5. Facilitation services: for improvement, example- CSA, benchmarking, planning support.
6. Corrective services: assume direct role to prevent or remediate a problem, e.g. training in
risk management, internal control, and compliance issues drafting policies.
In additional: It is important to make clear exactly what constitutes consulting work since IIA
Implementation Standard says: ‘The nature of consulting services should be defined in the
charter.’ One difficulty is type one consulting which consists of a formal engagement with a
planned and written agreement. The IIA encyclopedia series goes on to distinguish between
optional consulting work and mandatory assurance services:
Assurance: adequacy of entity internal control, adequacy of process or sub-entity internal
control, adequacy of ERM, adequacy of governance process, compliance with laws or
Consulting: improvement in efficiency or effectiveness, assistance in design of corrective
actions, controls needed for new systems design, benchmarking.
Individual internal auditors may have knowledge, experience and skills other than their
internal audit skills which management would like to exploit. For instance, internal auditors
may also have particular training, experience or qualification in IT, accountancy or legal
issues. If a consultancy assignment is to be delivered in which these skills will be of particular
benefit it will, However it will be necessary to make clear in the agreed Terms of Reference
for the assignment that the Head of Internal Audit can only be accountable for ensuring due
professional care is taken in developing advice offered on risk and control issues. If
management choose to place reliance on specialist advice drawing on skills beyond the
internal audit skills set this will be at their own risk in respect of due professional care and it
should be made clear that the work is carried out outside of the core internal audit remit. All
acceptances by management of advice given to them, of course, involves acceptance by
management of accountability for the consequences of implementing the advice
Relationships with management, other auditors and other review bodies are especially
important in consultancy work. Consultancy work relies on working in partnership with
management and internal auditors engaged on consultancy assignments should pay particular
Attention to building effective relationships with managers. The scope and objectives, timing,
And reporting arrangements should be agreed for consultancy assignments in the same way as
For assurance assignments. The objectives should make it clear that the internal auditor’s
involvement is a consultancy role. The Head of Internal Audit will reserve the right to audit
any risk management, control and governance process developed with Internal Audit acting in
its consultancy role.
About The Author:
Mohammad Wahid Abdullah Khan (MBA, CPFA, CPIA, CFC)
Home Page: http://wahidbd.page4.me
MOHAMMAD WAHID ABDULLAH KHAN Dhaka, Bangladesh, is a PhD Candidate in
"Criminal Psychology" as well he is “freelance Author, online columnists, Human
psychoanalyst, industrial psychotherapist, Certified Financial Consultant, & Certified
Forensic Accountant, too dynamic entrepreneur, utilize creativity leadership and
teamwork to design and execute solutions that creates customer value.
Moreover Mr. Khan is CEO & Certified Consultant of” Wahid & co, Wak Business
Solutions, Wak Business Support, “Wam Associates” & leader of the” Wahid Consulting
Group”; Prior to consultancy Mr. Wahid has fulfilled more than 14 (fourteen) years
working in various fields of Business like - Accounts, Finance, Auditing (Internal &
External Audit), Project budgeting and Project costing related positions in some of the
largest group & join venture companies in Bangladesh. Which experience encouraged him
to work as a “professional consultant” from a few years,
Mr. Khan is realistic and implements his assignment within the bounds, objectives and
capabilities of the organization. His extraordinary quick understanding of strategic
options helps find direction and supports management in decision making. He has a “doer”
attitude and gets things done on the technical and functional side. As a “Consultant” Mr.
Wahid believe that his study & physiological motivation is very strong, as well my
confident level is high & my quantitative skills are well-built also he is crystal clear about
my every single goal which helped me to be a very tough contestant “Consultant” in the
business consultant arena
• Associate Member – Institute of Management Consultants Bangladesh (IMCB)
•Member- Association of Proposal Management Professionals® (APMP®)
• Member – The Next level Purchasing Association.
•Member- The Chartered Institute of Personnel and Development (CIPD)
• Member - The Professional Risk manager’s international Association (PRMIA)
• Affiliate Member- Global Association of Risk Professional (GARP)
• Member - The International Association of Risk and Compliance Professionals (IARCP)
• Lifetime Member - Dragon fire martial arts association “International” (DFMAA)
• Individual Member: License Logic LLC
• Associate Membership - The American Psychological Association (APA)
• Member - The Global Community of Information Professionals