careers in audit

This week Audit International are taking a look at the 4 ways how Internal Audit can get a seat at the table.

When it comes to risk management and compliance, most organizations operate on a 3 Lines of Defense (3LOD) model, in which operational management, compliance, and internal audit work together in tandem to assess and mitigate risk and manage controls and compliance.

This model may be successful in theory, but as the risk management and compliance functions have grown more complex, it doesn’t always work as well as you might hope. Given the rising sophistication of cybersecurity threats and incidents of fraud, and the increasing compliance requirements posed upon organizations of all sizes, it can be difficult to keep an organization-wide pulse on threats and breaches in compliance as they arise.

The problem is, the three branches don’t always collaborate effectively, which may leave internal audit out of the loop and unable to provide much value to the organization. They may not have access to the data they need to generate effective recommendations. The internal audit team’s focus may be simply on checking boxes and ensuring compliance, rather than providing strategic insights that will help your organization understand and take steps to mitigate new threats.

If you want your internal audit team to move the needle at your organization, you need to get the ear of executives who can advocate for your work. By partnering with leadership, you’ll be able to spearhead new initiatives and gain critical access to data that will help your organization save money and reduce risk, proving your team’s value.

Here are four strategies for doing that effectively:

Identify the key people who can support you, and make a plan to build relationships with them
Your audit team will naturally be in touch with the managers who can provide key information needed to conduct your audits—but by focusing only on these contacts, you’re missing out on building relationships with the leaders who will be able to help you gain a more visible role in the organization. Build a plan for conducting periodic outreach to higher-level executives within your organization, such as your chief risk officer or your CTO. You can solicit feedback from them on any open questions they may want your team to review in your audits, or provide high-level executive briefs showcasing work that you’ve done and issues they may want to explore in further detail. Make sure that they know you and your team are available to support them and open for feedback.

Proactively address organization-wide trends
Rather than focusing solely on issues identified in individual audits, start looking at your audit results in aggregate to identify trends. Is a single department or office location having trouble resolving a specific compliance issue, or is it an across-the-board trend that should be shared with your executive team? Review your data frequently to understand risks that should be mitigated, and come up with step-by-step action plans for how they should be addressed, including who’s responsible and what the benchmarks for success are.

Pay close attention to third-party risks
Many audit teams take an insular view of risk management, failing to uncover the external risks brought on by vendors and technology partners. Make sure that you have policies in place to carefully vet and automate compliance on your third-party vendors, pulling in external data that will alert you to any financial or legal issues they may face. Regularly track all of your solutions and technology partners for red flags, and ensure that you have a strategy for mitigating them. You can showcase your findings in sessions with executives and other partners throughout the business, and collaborate to come up with a plan for any of your scenarios. Keep in mind that risks from big providers such as Amazon or Facebook may impact a lot of your customers or partners as well, so ensure that you map out all of the variables that may impact your company’s business model across the board.

Use best-in-class GRC technology to automate compliance and analyze data
In order to provide the most useful insights to your leadership team, it’s important to integrate your entire risk management function across an easy-to-use GRC platform. Your GRC platform should come with pre-built content that will help you automate your controls framework, regardless of your industry. It should make it easy to monitor compliance status and risk levels across the organization at any given time, with triggers prompting action when control levels are not being met. You should be able to easily drill down into your data and generate executive dashboards, so that you can share insights to justify recommendations and help your leadership team make better informed business decisions.

By building a cohesive strategy for integrating with the 3LOD, backed by in-depth data analytics, real-time data feeds, and workflow automation, your audit team will be able to generate insights that can help to identify new risks, and develop new strategies for mitigating risks across the entire organization. This will help you to become a highly visible, influential, and trusted partner to the business.

“Audit International are specialists in the recruitment of Auditors and various Corporate Governance Professionals including Internal Audit, Cyber Security, Compliance, IT Audit, Data Analytics etc across Europe and the US.

If you would like to reach out to discuss your current requirements, please feel free to reach us via any of the following:
Calling
– Switzerland 0041 4350 830 59 or
– US 001 917 508 5615
E-mail:
– info@audit-international.com”

Audit International were in awe to hear this revolutionary news from the billionaire founder of the outdoor fashion brand Patagonia. He has announced just yesterday he is giving away his company to a charitable trust.

Yvon Chouinard said any profit not reinvested in running the business would go to fighting climate change.

The label has amassed a cult following due to sustainability moves like guaranteeing its clothes for life and offering reasonably priced repairs.

The brand’s website now states: “Earth is now our only shareholder.”

Mr Chouinard has always said he “never wanted to be a businessman”.

A rock climbing fanatic, he started out as making metal climbing spikes for himself and his friends to wedge into rocks, before moving into clothing and eventually creating a hugely successful sportswear brand with a cult following.
Founded in 1973, Patagonia’s sales were worth around $1.5bn this year, while Mr Chouinard’s net worth is thought to be $1.2bn.

He claimed that profits to be donated to climate causes will amount to around $100m (£87m) a year, depending on the health of the company.

“Despite its immensity, the Earth’s resources are not infinite, and it’s clear we’ve exceeded its limits,” the entrepreneur said of his decision to give up ownership.
The Californian firm was already donating 1% of its annual sales to grassroots activists and committed to sustainable practices. But in an open letter to customers, the apparently reluctant businessman said he wanted to do more.

Mr Chouinard said he had initially considered selling Patagonia and donating the money to charity, or taking the company public. But he said both options would have meant giving up control of the business and putting its values at risk.

Instead, the Chouinard family has transferred all ownership to two new entities. The Patagonia Purpose Trust, led by the family, remains the company’s controlling shareholder but will only own 2% of its total stock, Mr Chouinard said.

It will guide the philanthropy of the Holdfast Collective, a US charity “dedicated to fighting the environmental crisis” which now owns all of the non-voting stock – some 98% of the company.

“Each year the money we make after reinvesting in the business will be distributed as a dividend to help fight the crisis,” Mr Chouinard said.
Patagonia combines high-end outdoor fashion with its own brand of environmental and social activism. It’s a heady combination that certainly appeals to a loyal, if predominantly well-heeled following.

Part of the attraction comes from the fact that its environmentally conscious stance isn’t new. It was preaching eco-awareness years before sustainable fashion became fashionable.

But it’s still pretty hard to save the planet, if your business depends on selling stuff, however many recycled or renewable products you use.

By ringfencing future profits for environmental causes, Patagonia’s founder Yvon Chouinard has done his best to square that circle.

But he is also clearly trying to ensure that Patagonia brand is future-proofed and can never fall into the hands of the kind of companies he has accused of greenwashing in the past.

It’s nice to bring a good news story to you readers, and it will be interesting to see if any other climate conscious companies will follow suit. The bar has well and truly been set.

“Audit International are specialists in the recruitment of Auditors and various Corporate Governance Professionals including Internal Audit, Cyber Security, Compliance, IT Audit, Data Analytics etc across Europe and the US.

If you would like to reach out to discuss your current requirements, please feel free to reach us via any of the following:
Calling
– Switzerland 0041 4350 830 59 or
– US 001 917 508 5615
E-mail:
– info@audit-international.com”

Audit International are aware that public sector organizations face a variety of risks, ranging from cyber threats to budget constraints to compliance concerns. While internal audit teams in the government sector might not be responsible for solving all those risks, they need to make sure that they are following through with relevant risk management protocols.

Therefore, it is essential that internal audit teams are conducting internal audit risk assessments to figure out what these risks look like.

“Risk-based auditing ensures that the internal audit activity is focusing its efforts on providing assurance and advisory services related to the organization’s top risks… This requires internal auditors to have a working knowledge of basic concepts, frameworks, tools, and techniques related to risk and risk management,” explains the Institute of Internal Auditors (IIA).

In this article, we’ll examine five tips to help public sector internal auditors build better risk-based audit plans. These include:

1) Define your goals
Before you get too bogged down in the specifics of running an internal audit risk assessment, take a step back and consider what you’re trying to accomplish. Doing so includes finding internal alignment within your audit team and with other stakeholders.

As Baker Tilly advises, internal audit teams “should meet with the various stakeholder groups – management, the audit committee, and the governing body – to explain the process, set expectations for the results and listen to any desired outcomes, as a means of adapting the approach or identifying other activities where internal audit can add value.”

2) Organize your data
Conducting an internal audit risk assessment also requires strong data practices. But before you can get to a place where you are using data analytics to identify key risks, public sector organizations often need to organize their data first.

Information might be held in a variety of systems that makes analysis inefficient, if not ineffective. Tools like TeamMate+ use a data exchange API framework to pull together data from different sources, such as governance, risk, and compliance (GRC) systems and enterprise resource planning (ERP) tools, giving you a complete picture of what’s happening within your organization.

3) Get agile
If you go through an entire risk-based audit without getting any feedback along the way, then it’s easy to get off track. For one, risks might have changed from the time the audit started to when it eventually wraps up. And when you present to stakeholder leaders at the end of the risk assessment, it can be tough to then incorporate their feedback into your internal controls and assurance processes.

Engaging in agile auditing can help. By breaking an internal audit risk assessment down into more manageable chunks — where different risk areas go from the planning to presentation stages in short sprints — public sector internal auditors may have an easier time adapting to change and incorporating feedback.

4) Go dynamic
Agile auditing creates a dynamic internal audit risk assessment. Instead of approaching these assessments as an annual occurrence, you can review public sector risks on more of an ongoing basis.

That means collaborating with other departments throughout the year to keep up with emerging risks, which is where good data-sharing practices also come in handy. Dynamic or continuous risk assessments can also result in more frequent reporting so that you can keep everyone in the loop and get their timely feedback. Having a strong internal audit risk assessment tool like TeamMate that can help you simplify risk scoring and create efficient audit reports makes a big difference.

5) Keep up with public sector requirements
Lastly, working in internal audit in the government sector means staying on top of general risks like cybersecurity and financial concerns, along with meeting specific public policy guidelines and regulations. Public sector internal auditors often turn to sources like Wolters Kluwer, which provides resources like webinars and other Expert Insights so you can learn what you need to do to strengthen internal audit as a government organization.

Following these five tips can go a long way toward creating a strong internal audit risk assessment and a better audit process overall. Even if it seems like your organization doesn’t face many risks, conducting a risk-based audit can help you stay on top of any changes to your risk level. Rather than being caught off guard, building a reliable internal audit risk assessment plan can help your organization control risk, however that takes shape.

“Audit International are specialists in the recruitment of Auditors and various Corporate Governance Professionals including Internal Audit, Cyber Security, Compliance, IT Audit, Data Analytics etc across Europe and the US.

If you would like to reach out to discuss your current requirements, please feel free to reach us via any of the following:
Calling
– Switzerland 0041 4350 830 59 or
– US 001 917 508 5615
E-mail:
– info@audit-international.com”