Posts Tagged “Auditor job description”

With one in five people pledging to pursue career goals and ambitions in their New Year Resolutions, Audit International have researched career experts advice on achieving these in 2023.

New Year, new (career) you! More than 20% of people toasted the start of 2023 with some form of New Year’s resolution and one in five of those pledged to pursue new career goals.
But with January now over, many of those good intentions may have already fallen by the wayside. If that sounds familiar, you’re not alone. In fact, people will typically ditch their ‘New Year New Me’ resolutions by the second week in January.

If that strikes a chord, don’t despair. Audit International has taken some insights from careers experts on their top tips on getting your career back on track.

Re-evaluate your current career choices :
For those with an established job, or who have taken time out of work to start and raise a family, it can be daunting to consider a new industry or completely change career path. However, it’s never too late to take your role in a different direction or re-enter education.

“If you’re looking to change careers in 2023, it’s important to evaluate your previous experience up until now. Consider which parts of your current or past job roles have brought you the most satisfaction or fulfilment, as this can help guide your new career path,”.

Adopt a continuous learning mindset :
Passing all of your exams is an amazing achievement, but that’s when the real learning starts. “Don’t assume you know everything now. Listen and ask questions and make notes and look things up. Every day is a school day!”

Work on your soft skills :
To get ahead in your career it’s also important that you develop soft skills that complement your technical prowess. “As part of your role, you will be expected to provide advice to clients and companies on any number of specific issues they may be experiencing, so developing strong soft skills including clear and concise communication, empathy, and the ability to make decisions to help resolve conflict will be key to your continued success.”

Develop a killer network:
Natural networking is everything. LinkedIn bombing everyone you think might be useful to you is annoying and will rarely achieve anything. Show an interest in everyone you meet and connect in a more genuine way. Try not to just focus on people you think are ‘important’.

Be authentic :
As an accountant, you are well-organised, a skilled number-cruncher and have a keen eye for detail. But as your career progresses and you become a team leader, you will need to focus more on management and people skills. If you get promoted to a management role without any formal training, it can be easy to act like the type of manager you’ve seen in the past. “People buy people, so be yourself, not the manager you think you should be”.

Focus on developing relationships :
Accountancy is a task-oriented job and it’s easy to get lost in the daily grind of completing tasks and hitting deadlines. But the real value you add as a manager is building relationships with staff and being an enabler and facilitator for the team. That means getting to know your colleagues on a personal level and understanding their strengths and capabilities.

Keep your eyes open for growth opportunities :
Don’t get bogged down in short-term deadlines and tasks. “These need to be done for sure, but you should also look more widely to find new areas of growth and challenges that can help you advance in your career”. That could mean studying for a qualification, taking on new responsibilities, or joining a cross-functional team. “Always look for ways to build your skills and contacts and your career will progress nicely.”

Don’t limit yourself to one area :
One of the best ways to elevate your career is by making sure you don’t limit yourself to just one part of the accountancy industry. “Gaining experience in a variety of roles – especially during the first few years of your career, as you decide the areas in which you thrive and most enjoy – will build your confidence and will provide you with essential skills that help boost your long-term career prospects”.

Connect with a mentor :
Regardless of where you are in your accountancy career, having the advice of someone more experienced than you can be invaluable. If you are unable to secure a mentor through work, it is also worth approaching people that you work with who could help you, or you could even look at joining an association that could pair you with someone.

Don’t put too much pressure on yourself :
It’s always good to be ambitious when it comes to your career and education, but avoid putting too much pressure on yourself when it comes to achieving all of your goals or training courses by the end of 2023. “Comparing yourself to others or putting pressure on yourself can lead to you feeling overwhelmed or burnt out. Take as much time as you need and find flexible options that work for you, especially if there are other important childcare or work commitments to take into consideration.”

Be ready to flex. Having a long-term career plan is great. However, things change and you will get frustrated if you can’t adapt or sometimes go with the flow.

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”

There is currently a misalignment in the world of Internal Audit. As Richard Chambers and AuditBoard’s 2023 Focus on the Future Report reveals, there are key areas where significant gaps exist between risk levels and planned efforts. The ability to attract and retain top talent, macroeconomic factors and geopolitical uncertainty, and business model disruptions due to the evolving risk landscape were all listed as top concerns for major organizations, yet only 13-20% of businesses have meaningful plans to devote substantial resources to these issues. Internal audit teams need to be ready to identify and address this kind of disconnect to ensure that their organizations are positioned for success in 2023. In this article, Audit International will identify three top internal audit trends, the challenges they present, and how internal audit teams can leverage software solutions to deploy team resources strategically against the most pressing concerns — setting themselves, and their business, up for success.

Trend 1: Velocity of Risk and Technology Change
Teams must continually provide assurance while adapting to evolving risks, digital disruption, and regulatory changes. Today we’re seeing significant contributions from the digital revolution, climate change, and stakeholder expectations, as the speed of decisions, the amount of connectivity, and the availability of data have all increased. Companies are learning that they have to balance pressures regarding what’s coming from governments, investors, and society as a whole. Stakeholders expect companies to act legally and with a conscience, and regulators are focusing on things like climate change, data privacy, and security.

Challenges in this area hit in numerous ways. First, there is an expanded purview required from emerging technologies and related risks. Second, there are repeated shifts to audit scope that put new burdens on teams. Third, there is an increased depth and breadth of data that brings along associated issues — including data reliability, related required team efforts, and resource constraints.

Technology can help audit teams develop solutions for these issues. Audit planning software accelerates risk and change responses from teams. With this preparation, teams can create risk-based audit plans with risk metadata to allow for efficient execution and continuous assurance.

Trend 2: Growing Internal Audit Talent Gap
Staff shortages, changing attitudes towards work, and a pre-existing skills gap are increasing talent risk and influencing how internal audit teams approach their work. Many teams are reporting that they are losing talent and struggling to replace them. Meanwhile, for the remaining team members, expectations are growing. They want to do more, and we need to keep them engaged. We have to support the folks that we have and give them opportunities to work in cybersecurity, sustainability, and other areas of interest.

The challenges created by the talent gap are as expected. Due to greater cost-cutting and efficiency demands often put in place by organizational leadership, teams are being asked to do more with less as headcount may be frozen or cut. There are the aforementioned difficulties retaining people and improving their skills, plus there are increasing specialization and training needs for team members.

A technology solution in this area is software with resource planning capabilities. This can help teams manage, optimize and retain talent by deploying resources more strategically, and it allows teams to improve individual and overall skills, efficiency, and experiences.

Trend 3: Align With the Business Objectives
The highly competitive corporate landscape and economic disruptions are driving the internal audit profession to refocus efforts on improved strategic alignment. Richard Chambers speaks often about auditors needing to become agents of change. When contemplating initiatives like cybersecurity, diversity, equity, inclusion, and third-party risk management, executive teams and audit committees all want better strategic alignment from internal audit teams. Internal audit must understand and embrace stakeholder needs and challenges so that we can better support their strategic initiatives.

The challenge for internal audit teams in this area is aligning audit with business priorities, which isn’t always as simple as that might seem. Plus, there is an increased requirement to validate internal audit resources. We have to start thinking in new ways, provide more value propositions, and be able to deliver more in less time.

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”

In 2023, organizations may face new and expanded cybersecurity and compliance mandates, which could vary from location to location and from one industry to the next. As a result, your organization may be looking to obtain a certification or will need to pass an audit for a specific set of standards or requirements.

While recognition for demonstration compliance or receiving certification is a great reason to celebrate, the process leading up to that is often time-consuming and sometimes dreaded, especially if you must undergo an audit first.

But audits don’t have to be as frustrating as they once were. With the right resources and tools, you can pass your next audit with ease. Here are five tips from Audit International to help:

Know your current program state.
Don’t wait until the audit is underway to find out where you might have gaps or weaknesses. Go ahead and assess your current compliance state so you know what you need to address before your real assessment gets underway. Consider using a cybersecurity compliance platform that automates these assessments for you and look for a platform that gives you real-time compliance scoring, so you’re never caught off-guard if something isn’t functioning as you intended or you’ve overlooked an important control or other security measures.

Document and evidence.
You can do everything correctly and score 100 on your current assessment, but if you don’t have a document repository that puts everything you need right at your fingertips in one place, or if you can’t supply all the necessary proof and evidence an auditor may want, you likely won’t get credit for what you’re doing right. Put away those binders of dusty old printouts you haven’t looked at since your last audit. Instead, use a cybersecurity management platform to track and retain all of your evidence and documentation all in one place for easy, shareable access with your auditors.

Put teamwork to work for you.
Instead of chasing down who’s responsible for which compliance requirement and trying to understand what they’re doing and how well they’re doing it, use a compliance management platform to help you automate task assignments, track progress, send alerts when those tasks are complete, and assign new tasks as they pop up. A platform like Apptega can even externally alert your auditor when your team has completed an evidence request or other necessary task.

Communicate across your organization.
One of the challenges in building a compliance culture is often that program managers speak industry lingo and not the same language that people in different roles within the organization can understand and relate to their day-to-day responsibilities. Instead of scrolling through hundreds, maybe even thousands of rows of data to find what you need for your next compliance conversation, consider using a compliance management platform that has a pre-built library of reports you can quickly draw on for your next engagement, whether that’s your C-suite, an auditor, or your tech team.

Don’t go at it alone.
While you can meet all the requirements on an audit prep checklist, the reality is when you work on a program, it’s easy to overlook issues an outside eye might catch. Before your next audit, go beyond a self-assessment and consider working with an outside compliance consultant to take a closer look at your existing program and help you seek out and address issues before your auditor finds them.

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”

Here at Audit International, we understand that virtual interviews have become the go-to method of interviewing. So how do you prepare?

Lights! Camera! Action! Are you mastering virtual interviews in your job search?

According to this survey, 33% of employers have an exclusively remote interview process with 21% holding in-person interviews for the final round only.

Audit International might be being “Captain Obvious” here, with a list of the five ways to avoid sabotaging your interview:

1. COMMUNICATE YOUR CALENDAR
If you live with others, let them know when you have a scheduled interview to prevent any interruptions. Take a step further with a sign on the door, locking the door to prevent people from barging in and closing windows to prevent outside noise.

2. FIND A NEUTRAL BACKDROP
Create a distraction-free environment. Test the audio and video to ensure sound is clear, lighting is strong, and the laptop is the right height. In addition, consider purchasing a ring light that attaches to your laptop for optimal lighting. Best to use a natural background rather than a filter.

3. CLEAR YOUR SCREEN
Close all windows and applications on your laptop. Mute any default notifications on all nearby devices so your interview is uninterrupted by pings or ads popping up on open tabs.

4. ESTABLISH GOOD EYE CONTACT
Make eye contact during the interview to establish trust, convey confidence, demonstrate professionalism, and indicate interest.

5. PREPARE FOR THE UNEXPECTED
“If you take these steps to rid your interview space of potential distractions, you’ll be able to focus on what really matters—connecting with the interviewer across the screen, demonstrating your qualifications, and learning more about the opportunity to determine if it’s right for you.”

Are there any other top tips you can think on to add to the list?

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”

With businesses facing the strongest economic headwinds in years, the Chartered Institute of Internal Auditors is urging internal auditors to embrace data analytics to navigate more risky, uncertain, and volatile times ahead.

To support their call to action the Chartered IIA, a professional organization for internal auditors in the U.K. and Ireland, in partnership with AuditBoard has published a new report “Embracing data analytics: Ensuring internal audit’s relevance in a data-led world.” The report is aimed at encouraging internal auditors to fully embrace data analytics in the age of systemic risk.

The aftermath of the pandemic, the war in Ukraine and now a recession has all magnified and exacerbated a multitude of business-critical risks. These major risk events are having compounding downstream effects on supply chains, inflation, growth, costs, Forex rates, cybersecurity, and workplace mental health. Creating an adverse business risk environment of a kind not seen for decades. Making it challenging for boards to keep pace with the myriad of risks they now face.

“Data is key for organizations to navigate more risky times ahead and it is key for the future of internal audit. Understanding what the data shows about risk resilience in today’s complex environment will help ensure organizations’ success. We urge businesses and internal audit to embrace data analytics,” says John Wood, Chief Executive of the Chartered Institute of Internal Auditors.

However, in these challenging times harnessing and embracing the power of data analytics can enable internal audit to deliver faster and more incisive insights on fast moving risks, that boards can then act upon swiftly. Helping organizations to quickly identify, manage, and mitigate emerging risks during rapidly evolving situations.

Needs Improvement
The report is based on a survey of 298 internal audit executives from the private, public, and third sectors across the UK and Ireland. The survey revealed:

60% of internal audit functions are already using some for of data analytics, an additional 7% having advanced to AI. However, this still leaves a third yet to adopt data analytics.
The top three risk areas for using data analytics are financial (62%), fraud (17%), and legal and compliance (6%).
The top three benefits of using data analytics include greater level of assurance (48%), 100% audit coverage (21%) and enhanced efficiency (14%).
The top three barriers to fully embracing data analytics include lack of skills (49%), lack of resources (24%) and lack of time to implement (12%).
Only 17% expressed concern that internal auditors could be replaced by robots in the future. Instead, data analytics and AI can free up internal auditors’ time to focus on strategic and systemic risks that could be coming down the track.

The report makes several recommendations for boards and internal audit, including:

– Boards and internal audit should ensure that senior management has defined the organization’s top five risks, and that the data support this view and is correct and reliable.
– Boards and internal audit should ensure that the organization has its own data strategy in place.
– Boards should work with internal audit to identify what data is available to improve risk assurance, and how data analytics could be applied to this data to improve assurance coverage across the organization.

– Boards and internal audit should work together to champion a data analytics culture and promote a data-first mindset.
“Given the warp speed at which risks can emerge and wreak havoc, embracing data-analytics is non-negotiable for boards and internal audit if they are to stay on top of the multitude of risks that organizations are now wrestling,” says Richard Chambers, Senior Internal Audit Advisor of AuditBoard, and former President of the Global IIA. “Data analytics enables faster and higher quality assurance for boards to then act on. In stormy economic times a data-led approach has never been more urgent.”

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”

In this final article of the series, Audit International focus on the third element of ESG- Governance risk. This differs from the first two elements – Environmental and Social – in that several governance risks have long been recognized and included in our audit plans. However, many more have recently gained prominence. Therefore, it is important that internal audit understands these risks and is well positioned to provide assurance.

Governance risks :

Some governance risks are broad in nature. Others, are very narrow. Some have little in terms of universal benchmarks, while others have well-established frameworks or regulations. Here are some of the main risks that should be considered:

– Shareholder rights and engagement – are there any limitations on certain classes of shareholders, and does the business engage effectively on important issues?
– Board structure and diversity – are there independent directors, and does the board have sufficient diversity of experience, style, and background? Increasingly, neurodiversity is a consideration, and in some countries a workers’ representative is a requirement.
– Executive compensation – is this structured to be in line with corporate objectives, and is it consistent with peers in comparison to the wages of other staff?
– Anti-bribery and corruption – many countries have a comprehensive legal framework.
– Tax transparency and policy – what is the organization’s approach to tax, and particularly the jurisdictions it operates and pays taxes in?
– Ethics and culture – a broad topic, ethics encompass all the above and more. Culture has become a hot topic over the past 15 years with the link between a strong organization-wide culture and performance becoming increasingly apparent.
– Data protection – often also included as a social risk, good information governance is relevant here as well.
– Typical impacts for the organization will be reputational, legal and regulatory, people, financial, and ultimately strategic.

Getting started – Determining the key risks :
Compared with environmental and social risk, it is much more difficult to take a holistic approach to governance risk, given the breadth of topics. However, it is likely that many activities and risks are already in your audit universe. A governance code may have been adopted by your organization, although these may only cover some of the issues described above. Understanding the relevant governance code(s) –mandatory or optional – is a good starting point. This will depend on jurisdiction(s), market listings, regulators, and industry practices. Governance codes can be principle-based or more prescriptive, and will typically define some or all of the following, often on a “comply or explain” basis:

– Clarity of purpose
– Leadership
– Integrity
– Board composition and division of responsibilities
– Board effectiveness
– Decision making
– Risk management, internal controls, and audit
– Accountability, transparency, and reporting remuneration

In understanding governance risks, you should also take into account what specific legal or regulatory requirements there are around any of these issues. This may include reporting requirements around diversity or executive pay or matters which must regularly be reported and considered by the board. Also, consider what other stakeholder expectations are relevant. This is likely to focus on investors, as they have been increasingly vocal and prepared to vote against boards that do not adequately address specific issues.

With this background information, along with your consideration of the issues highlighted earlier in this article, you can ensure your risk assessment incorporates relevant governance risks.

How internal audit can make an impact :
As always, we should leverage work done by the first and second lines in considering where we can make the biggest impact. We should consider our risk assessment alongside any new information we have about regulatory changes, emerging issues in our sector, or jurisdictions, and investor interest.

Some Examples :
– Governance framework
– Governance codes were mentioned earlier in this article. Whether your organization has adopted a code in full or developed its own framework, it will need to produce a regular (typically, annual) report of compliance with the code. Assessing the processes supporting this reporting is often a good way to execute broad audit coverage of governance risks. Such reports are expected by regulators, provide assurance to the board, and are sometimes published (at least in part in the annual report). – Therefore, it is important that they give an accurate picture.

Reports may take many forms and will often include qualitative assertions and specific data or examples. It is important that any data reported is accurate, but equally as important that narrative assertions or examples are supported by evidence. Internal audit can provide assurance over the processes to collate this evidence, ensuring it is complete and accurate and that the right oversight controls are in place. We can also review the report and verify that the conclusions reached fairly reflect the evidence available. Generally, we take a combined approach to provide comprehensive and broad assurance.

Board composition :
Board composition has been under the spotlight, and while practices have improved there is often still a lack of transparency in recruitment, objective evaluation, and diversity. This is a sensitive audit which needs to be conducted by experienced auditors. When done well, it provides real insight and impact.

It is important not to make this about the individuals currently serving on a board, but about the effectiveness of processes around recruitment, structure, skills-determination, and performance evaluation. Consider some or all of the following:

Is there an evaluation of the skills required on the board and an up-to-date skills matrix? Is this specific enough to ensure the board members possess the right range of skills and experience but sufficiently flexible to attract a diverse pool of candidates?
Do recruitment processes include defining an ideal candidate profile, pre-determined selection criteria, and stakeholder involvement in the exercise? Are candidates sourced in a way that ensures a wide pool of candidates, recognizing that there may be a need for confidentiality?
How are conflicts of interest identified and managed?
What are the rotation policies/term limits for non-executive board members?
How is board performance evaluated? Is there a self-assessment process and a periodic independent assessment?
Is there a training plan for the board and individual board members? Is there an individual appraisal process?
Does the committee structure support effective delegation but ensure the board maintains its responsibility for strategy and oversight?
How effective is the relationship between executives and non-executives? Does the structure facilitate both support and challenge?
Is there an effective process for succession planning?
Do boards allow time for open discussions and strategic thinking, as well as formal meetings?
Some of this can be done by document review — including board papers and minutes, skill matrix, recruitment process documents, etc. But much of this will also require interviews with board members and those who support the board, such as the corporate/company secretarial or corporate governance team.

This article concludes the series on what internal audit should know about ESG risks. If you missed the first two articles, be sure to go back and read our previous blogs, to get you up to speed on our suggestions on how internal audit can approach environmental and social risks.

“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”

Here at Audit International this week, we are are all talking about the Chartered Institute of Internal Auditors dropping their ‘Risk in Focus 2023’ report. The report compiles the results of 9 in-depth interviews, 4 round table events with 39 participants, and responses from 834 Chief Audit Executives (CAE)’s from across 15 European countries. In a nutshell, the report has some solid contributors, meaning, the top 10 areas which are concerning other CAE’s, might be worth you thinking about also – especially as you prepare your 2023 annual plan.

The Risk in Focus 2023 report has had a great refresh and shows the movement of each of the risks over the years. This year’s report shows 15 categories worth consideration:

– Mergers and acquisitions

– Health, safety and security

– Communications, reputation and stakeholder relationships

– Fraud, bribery and the criminal exploitation of disruption

– Organisational culture

– Organisational governance and corporate reporting

– Financial, liquidity and insolvency risks

– Supply chain, outsourcing and ‘nth’ party risk

– Business continuity, crisis management and disasters response

– Climate change and environmental sustainability

– Digital disruption, new technology and AI

– Changes in laws and regulations

– Macroeconomic and geopolitical uncertainty

– Human capital, diversity and talent management

– Cybersecurity and data security

The report finds that the greatest movers, in terms of focus / attention given to this particular topic by CAE’s, found the following four categories had the most increased attention and focus since 2020:

– Macroeconomic and geopolitical uncertainty

– Human capital, diversity and talent management

– Supply chain, outsourcing and ‘nth’ party risk

– Climate change and environmental sustainability

This years report also highlights the impact the war in Ukraine has had on many of the businesses and risks highlighted in the report.

For each of the risks, the report provides suggestions on how Internal Audit can help the organisation.

“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”

A recent study revealed that 82% of finance and business leaders must comply with sustainability requirements or ESG regulations. Even without mandatory regulatory standards in place, Audit International would bet their bottom dollar that more companies would voluntarily take on sustainability initiatives and thus, produce ESG reports.

Why? Because more stakeholders are looking.

The number of parties with vested interests in ESG performance has dramatically increased. The tendency is to think of investors as the sole consumer, judge, and jury of ESG reports, but that’s changing, especially as other stakeholders find themselves subject to ESG expectations.

So, who’s really looking at your ESG reports? And why do they care?

Investors
Let’s start with the obvious: investors! Today’s investors want to ensure their money supports organizations that align with their values. Increasingly, those values are moving further and further away from brown stocks. Investors are leaning away from companies that might risk damaging the environment, operate with inequities, or are vulnerable to corruption.

While sustainable investing is value-based for many investors, it’s also the safer, more lucrative investment in many cases.

A study by Nordea Equity Research reported that, over three years, companies with high ESG ratings outperformed the lowest-rated companies by as much as 40%.

A Bank of America Merrill Lynch study found that firms with a healthier ESG record yielded higher three-year returns. They were also more likely to become high-quality stocks, less likely to experience significant price drops, and less likely to go bankrupt.

All this to say, an ESG score isn’t just a number. It indicates to investors that your company is a proactive, forward-thinking entity that will satisfy the investor’s need for ROI and their conscience.

Internal stakeholders
Many stakeholders within a business can benefit from ESG performance data.

For example:

Sales and marketing can use ESG data to showcase a company’s sustainability performance in their efforts to entice new customers.
IR and PR teams can tout ESG successes to improve the company’s reputation.
HR reps can use social data to attract talent.
Finance teams and chief executives can use ESG insights to improve profitability, contain costs, identify new business opportunities, and recognize areas of investment and divestment when ESG data is connected to financial performance.
Organizations can put ESG performance data to work in many ways. Regarding business value, ESG reports can give every department leverage in furthering the growth and goodwill towards an organization.

ESG scoring bodies
A good ESG score is a golden ticket to a favorable ESG reputation. To receive one, you’ll have to complete surveys or create reports designed by third-party providers, who then calculate ESG scores based on the metrics and ESG performance you reported. Like a credit score or a bond rating, an ESG score demonstrates your company’s ability to meet its ESG commitments, performance, and risk exposure.

Notable ESG scoring organizations are Bloomberg ESG Data Services, Sustainalytics, ESG Risk Ratings, JUST Capital, MSCI, Refinitiv, Dow Jones Sustainability Index Family, and RepRisk.

Banks and financial institutions
Banks, capital markets, and wealth managers are moving towards ESG agendas. This is not just an ethical move but one of demand, risk, and reward.

In terms of demand, millennials lean significantly towards sustainable investments. A survey by EY found that millennials are twice as likely to invest in a fund or stock if social responsibility is a component of the value creation narrative. (Might I remind you millennials are the demographic soon to be society’s primary wealth holders.)

In terms of risk, the liability to banks is two-fold. First, banks are subject to the same sustainability scrutiny as other businesses — customers want to bank with sustainably responsible banks. And second, banks face similar challenges to investors: lending to companies that aren’t sustainable could also pose threats to their business. Will a coal mine be able to repay its debts when sustainable alternatives take over? While banks might not be in this scenario just yet, in the future, it’s possible that businesses could see requests for funding denied if they don’t prove to be sustainable enough.

In terms of reward, again, we see companies with strong ESG performing better than those with weak ESG. An analysis completed by global investment manager BlackRock found that up to 88% of sustainable funds outperformed their non-sustainable counterparts between January 1, 2020, and April 30, 2020. Why would a wealth manager allocate funds to an unsustainable stock when a more sustainable and equally (if not more) profitable alternative exists? Why choose to lose/win when you could choose to win/win?

Regulators
Incoming! A stampede of regulations is making its way into the ESG reporting arena. Two regulations of note are:

The EU’s Corporate Sustainability Due Diligence (CSDD)

In February 2022, the European Commission published a draft of the CSDD. If passed, the CSDD would require companies to disclose the impacts of their operations on human rights and the environment.

The US’s new climate-related disclosures

In March 2022, the SEC proposed expansive new climate-related disclosures related to greenhouse gas emissions, climate risks, transition plans, and governance.

Sullivan and Cromwell LLP has a great round-up of the latest (up to May 2022) ESG regulatory advancements here. The bottom line: ESG is being written into everything from litigation to financial institutions, disclosure and governance, and law. While your particular flavor of ESG regulation will be subject to your jurisdiction and industry, you can bet on increased regulatory scrutiny coming your way soon.

Consumers
B2C companies find themselves with a consumer who cares about their product, how it’s made, and who’s making it. Recent PWC research found that:

Consumers aged 17 – 38 years are almost twice as likely to consider ESG issues when making purchasing decisions than others.
Over half of consumers surveyed said that a company’s purpose and values played a role in their purchasing decisions.
49% of consumers and 66% of millennials use the internet to learn more about a company’s ESG practices before buying a product or service.
From this, we can conclude a few things. The future of the sales will be dependent on ESG performance. And consumers aren’t satisfied with marketing promises — they want the ESG evidence, and your reports will be front in center of their investigations.

Everyone’s looking at ESG
Don’t make stakeholders struggle to seek out your ESG performance. By using a corporate performance management approach to ESG reporting, you can tell your sustainability story, disclose according to multiple new and evolving frameworks, and connect financial outcomes, operational activities, and ESG performance to ensure sustainability is always tied to doing good for the earth, people, and your bottom line.

“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”

At Audit International, we know when people hear buzzwords like ‘data analytics’, ‘artificial intelligence’ and ‘machine learning’, it can be intimidating. Many people don’t fully understand such concepts, but in truth, you don’t need to. You just need to get comfortable with them. And you probably already are: familiar services like Netflix or Spotify use artificial intelligence to understand your preferences and make subsequent suggestions based on that knowledge. The level of consumers’ expectations is continually increasing, and the successful companies are those that are advancing with technology. The same is true for businesses and their expectations. In audit, the revolution is underway and the sections that follow highlight the key drivers for this change.

Improve the audit experience –

The volume of data available to auditors is astounding, but in most cases, this data is simply not being used. If this were happening in any other industry, there would be questions to answer. Data analytics can improve the audit experience in several ways, for both the audit team and for the client.

Improve audit quality-

During the planning phase of the audit, audit teams must shift their focus away from the old mindset of “what could go wrong?” Through analytics, we can turn our attention from what could go wrong to what has gone wrong. Auditors have access to the client’s complete financial data for the period under audit – if they focus on analysing and understanding the data, they could identify an unexpected transaction or trend in the process. During the execution phase, auditors should also build on the knowledge gained in planning to truly understand the business in question and focus their attention on higher risk transactions. Finally, auditors should move away from a ‘random sample’ approach and, instead, focus on the transactions that appear unusual based on their knowledge of the client, business or industry. These are just a few areas where improvements in audit quality can be achieved using data analytics.

Improve efficiency-

In the examples above, the use of data analytics in planning will identify what has gone wrong and any associated unusual transactions. In execution, these transactions will be tested as part of the audit sample. It could also cover some requirements under auditing standards concerning journal entry testing, as the journal entries will likely be the data that highlighted what went wrong in the first place. Again, this is just one example of efficiencies gained without even considering the hours saved by automating processes like creation of lead schedules and population of work papers.

Post-pandemic world-

The world will be a very different place in years to come. Firms with the ability to perform in-depth analysis using data analytics undoubtedly have a significant advantage over those that do not, given the efficiencies they can gain and the potential reduction of physical evidence required from clients, among other things. Due to the changes we have all had to endure, auditors may also have additional procedures to perform (e.g. roll-back procedures where they were unable to attend stock counts at year-end due to the COVID-19 closures of businesses). Such procedures have the potential to be automated, saving even more time and effort for audit teams.

Improve engagement-

Rather than spend time performing mundane tasks such as testing large randomised samples, data analytics allows audit teams to jump into the unusual transactions. This will make the job more interesting to auditors and cultivate a curious and questioning mindset, which will, in turn, lead to improved scepticism and audit quality.

Improve client experience-

This might happen in two ways. First, the time saved by the client’s staff (who, in theory, will have fewer samples for which to provide support) and second, through the value the audit adds to the business. As an example, consider an audit team performing data analysis on the payroll for their client. As payroll is a standardised process, the audit team has an expectation around the number of debits and credits they would see posted to the respective payroll accounts each month. As part of their analysis, however, they find an inconsistent pattern. This can be queried as part of the audit and the client will be better able to understand a payroll problem, which they were previously oblivious to.

Client expectations-

Given the level of data analysis that occurs daily in the life of anyone using a smartphone, a consistent, high quality is understandably expected in people’s professional lives, too. Audit clients, like all consumers, want more. They want a better and faster audit. They want an audit that requires minimal interference with the day-to-day running of their business, without compromising the quality of the auditor’s work. With troves of data now available to auditors, such expectations are not entirely unreasonable. Audit firms have access to vast amounts of financial and related data – in some instances, millions of lines of information – that, if analysed robustly and adequately, would improve their processes, their clients’ experience, and the quality of their audit files.

Aspirations of professionals-

Audit professionals can often struggle with work-life balance, as we here at Audit International know. Though most firms are getting on top of remote working, the hours in busy season are long. In a time of continuous connectivity, the time frame around ‘busy season’ is also becoming blurred. Through the use of technology, we will one day make auditing a ‘nine to five’ job. Many will scoff at that idea and, although we do not expect this to happen in the next five years, or even ten years, it is possible. By automating mundane tasks and continuously upskilling our graduates, we can transform how an audit team completes work. There will be more scope to complete work before clients’ financial year-ends, thus moving much of the audit out of the traditional ‘busy season’. Machines can complete specific tasks overnight so that auditors could arrive at their desk, ready to work on a pre-populated work paper that needs to be analysed by a person with the right knowledge. With appropriate engagement by all parties (i.e. audit teams, senior management, and audit clients), we could significantly reduce the hours spent on audit engagements and give this time back to auditors. Along with attracting high-calibre graduates, we will retain high-quality auditors in the industry while also avoiding mental fatigue and burnout, which will again lead to better quality audits.

Graduate recruitment-

Graduates joining firms in recent years have particular expectations of the working world. They want job satisfaction, flexible hours, remote working, and an engaging role that will challenge them. Professional services firms have to compete for the very best graduates, and no longer just against each other – a host of technology-enabled businesses are attracting talent on an unprecedented scale by meeting the needs listed above. Technology, and data analytics, in particular, can offer the solution to the graduate recruitment challenge – by making the work more efficient and automating mundane and repetitive tasks, graduates can instead focus on analysis. Time and time again, when we talk to candidates, we always hear that if they find their work challenging and interesting, they will feel more engaged.

Challenges-

This move towards technology is not without its risks to the profession. Automating basic tasks removes the opportunity for graduates to form a deep understanding of these sections of the audit file. The onus is therefore on the current cohort of Chartered Accountants to take the reins, both to drive technology advancement forward and also provide practical, on-the-job coaching to ensure that this knowledge is not lost for the generations that follow.

“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”

Transit systems. Healthcare facilities. Financial services firms. What do they all have in common? Organizations within these sectors — and essentially all industries, for that matter — have been hit by ransomware, a type of malware where cybercriminals demand a ransom payment to unlock access to your private and confidential systems and files.

While many cybersecurity risks exist, ransomware is often one of the more pressing challenges. Not only can it bring operations to a screeching halt, but it can also cause issues like data leaks and reputational damage. A global survey by cybersecurity software company Sophos finds that 66% of surveyed organizations suffered ransomware attacks in 2021. “It took on average one month to recover from the damage and disruption,” Sophos adds.

Given the severity of ransomware risk, internal auditors should aim to help their organizations reduce these threats, along with overall cybersecurity risks. How? As Audit International will examine in this article, internal audit departments can take steps such as conducting IT/cybersecurity audits and using technology like internal audit management software to improve internal controls and collaboration.

Review IT practices and controls :
Even though internal auditors generally aren’t responsible for choosing cybersecurity software and establishing employee training to recognize ransomware risks, they can still provide assurance over IT practices and controls, such as with an IT audit.

When IT teams conduct phishing tests to see whether employees are tricked by email scams that can cause ransomware issues, internal auditors are then able to review those results and ensure that the organization is meeting a sufficient standard to prevent social engineering. If the results demonstrate gaps in employee preparedness on ransomware risk or other cybersecurity risks, then internal auditors would likely want to communicate that risk to other stakeholders, like boards and senior management.

Internal audit leaders might also review remote work policies to ensure that IT teams are appropriately managing these with ransomware risk in mind, rather than just focusing on the functionality of work-from-home environments. While internal auditors often rely on guidance from IT leaders, they can still audit areas like access logs to ensure that only approved devices, with the appropriate threat intelligence and data protection technologies, are connecting to their networks.

Align key stakeholders :
Improving ransomware protection also means internal auditors need to align key stakeholders, rather than just collaborating with IT. That means pulling together information from multiple departments to make sure everyone’s on the same page.

Internal auditors should check with finance teams to see how they’re accounting for the potential costs of a ransomware attack, and then ensure that other key stakeholders, like boards and senior management, understand and agree with this approach. Otherwise, issues like not having a sufficient budget to recover from a ransomware attack may arise.

“Regardless of their size or revenue, organizations should assume they will be targeted with ransomware, and they should examine their prevention, detection, mitigation, response, and recovery measures,” notes Zachary Ginsburg, research director for the Gartner Audit and Risk practice, in a Gartner press release.

Leverage internal audit management software :
Internal auditors can mitigate ransomware risk by leveraging internal audit management software. Many technologies are designed to assist with cybersecurity risk management, but from an audit perspective, internal audit management software is important for gaining assurance.

Overall, internal audit teams have an opportunity to make a significant impact when it comes to ransomware risk management. Planning ahead and focusing on internal alignment can go a long way toward reducing ransomware attacks and other cybersecurity risks.

“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”