Posts Tagged “Auditor job description”
A few weeks ago, Audit International met with a self-described “introverted” business leader. This business leader confided to us that introverted individuals have a harder time climbing the corporate ladder. The individual went further in claiming that recent research shows that it is worst for women, as introverted women are seen as less assertive and lacking in leadership traits.
Conversely, the business leader pointed out that recent research also shows that introverted individuals actually make better leaders, but because they are not as assertive as their extroverted counterparts, they are not equally represented in leadership positions. That took a minute for us to reflect on. It was one of the most thought-provoking discussions we’ve had in recent weeks.
Curious by the proposition and wanting to see what statistics we could get on the topic ourselves, we set out to create several online polls. Initially, we just asked a simple question:
Do you consider yourself an introvert or an extrovert? Here are three things we learned from asking that and some follow-up questions:
People Do Not Like Binary Options on Personality Traits
In two separate polls across different platforms, we received similar feedback:
“No room for those who don’t fall into these binary groups?” was one of the first responses.
“Some people vary based on their environment,” and “I believe there should be space in between the two,” were two responses that quickly followed.
“Do you have a definition of introverts and extroverts?” was the last question.
Even when we tried to foolishly define the terms we were met with a big, “it depends.”
Lastly, we received the one-word response that took my approach in a different direction: “ambivert.”
The Power of the Ambivert
A full 70 to 80 percent of internal audit professionals considered themselves introverts when only given two choices on the introvert vs. extrovert spectrum. However, in follow-up polls, when the ambivert option was introduced, the results were different. Vastly different. Nearly half of the introverts from the initial polls now classified themselves as ambiverts. Ambiverts were now, in two separate polls, the largest group.
So, what does that mean?
Maybe we’re being foolish again, but here is our theory: Introverted ambiverts are those who usually keep to themselves and don’t brag about their accomplishments, but when the stars align and the spotlight is on them, they shine.
When Audit International first started in the internal audit profession, we worked with two introverted gentlemen. They generally kept to themselves in the day-to-day audit process. But, when they led projects, they had absolute killer instincts.
In that group, they audited the Latin America region, so depending on the country visited they would switch from English to Spanish or Portuguese and back to English with pure finesse. Audit clients would be at ease with their approach and communication style. Anyone who had only known them for that period would swear they were extroverted individuals. But they were not. They were ambiverts.
And that is the power of the ambivert: Killer instincts when it matters.
Extroverts Are Disproportionately Represented in Leadership Positions
Back to the business leader’s proposition that introverted individuals get the short end of the stick when it comes to leadership positions. Was that the case? Based on my poll results, yes.
Extroverts represented approximately one-fourth of the sample population of internal audit professionals. However, they represent one-third of those professionals in leadership positions. Introverts, excluding those with ambivert traits, represented over a third of the sample population of internal audit professionals, but only 10 percent of those in leadership positions. These statistics can be even more accentuated when it comes to female leaders.
A burning question then came to mind. Do extroverts make better leaders? Would that be the reason they are overrepresented in those positions?
Audit International set out to attempt to answer that by asking the community about their experience with their previous leaders. Were their best leaders introverts or extroverts? For this last poll, we purposefully left the ambivert option out.
The results? Extroverts were slightly at an advantage, 53 percent versus 47 percent. In other words, the “best” leader being an introvert or extrovert had close to the same likelihood as the flip of a coin.
How come we don’t have more introverted leaders if they are just as good as extrovert ones?
We don’t have any statistics there but, in my opinion, it’s likely because extroverts are seen as better communicators, and being a good communicator is a sought-out trait in effective leaders.
Should Introverts Lose all Hope?
No. Introverts in some circumstances may have an advantage over extroverts. Another reason is that in [internal audit], passion for the role is important to the impact that you can have on the organization. An introvert has to put a bit more effort into the work than an extrovert does, and I’ve seen several times where this translated to the level of commitment and effectiveness to the role.”
It might even be concluded that an introvert displays more active listening skills and empathy, which is also essential in leadership roles.
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
When SOX was first enacted in 2002, its goal was to increase the overall transparency of financial reporting while, at the same time, develop a more reliable system of checks and balances. It was understood that compliance was both a legal obligation and good business practice.
Affecting both public and private U.S. companies, as well as those non-U.S. companies with a U.S. presence, SOX is focused on corporate governance and financial disclosure. It requires that all financial reports include Internal Controls Reporting and demonstrate that a company’s financial data is complete and accurate, with an adequate number of controls established to safeguard it. It also encourages the disclosure of corporate fraud by protecting whistleblower employees of publicly traded companies or their subsidiaries who report illegal activities.
The continued evolution of ESG on the other hand, includes a variety of factors that are often used to evaluate a company’s commitment to sustainable operations. The environmental factors in ESG offer insight into an organization’s environmental impact, including its carbon footprint, climate change initiatives, waste management policies, natural resource conservation, pollution, or efforts to decrease deforestation.
The social component of ESG examines an organization’s treatment of stakeholders (workforce, customers, providers and suppliers, government, regulators, or the local or global community) on issues such as diversity, equity, and inclusion practices, wages and salaries, and sales practices.
Lastly, the ‘G’ in ESG focuses on the governance factors and how to assess whether a company’s internal processes are able to ensure the organization, and its employees, act with professionalism and integrity.
While SOX is primarily focused on financial information — working with finance professionals and accountants — ESG is more concerned with non-financial data and metrics. It shouldn’t come as any surprise when organizations faced with these evolving and new ESG reporting requirements ask themselves.
The role of internal audit, Starting small and look at the bigger picture:
In the years that followed the introduction of SOX, the effect that it had on the internal audit profession was clearly a double-edged sword. On the one hand, internal auditors were quickly recognized as the experts needed to step into this space and provide the guidance that so many organizations needed. This resulted in growth across both the internal audit profession, as well as the various functions internal auditors were able to provide assurances for. It’s fair to say that internal audit membership more than doubled during the first few years of SOX implementation.
However, due to the urgency and level of uncertainty that SOX presented, leaning heavily on internal auditors also resulted in their spending greater amounts of time focused exclusively on SOX priorities, and significantly less time focused on those risk-based audits that organizations depend on. From an internal audit perspective it was a massive undertaking, and one that led to organizations developing SOX-specific internal audit teams.
Over the course of the last 20 years, and as a direct result of SOX, internal audit’s role around internal controls for financial reporting has become well established. Many of those same auditing skills and practices can (and should) be applied to ESG. However, an all-too-common question that’s on everyone’s mind is — “Who is responsible for ESG?”
ESG should be viewed as a top-down initiative, particularly from an organizational perspective regarding mandates, targets, and how goals are being established, monitored, and reported on. Each area or department of an organization should be aware of and responsible for their ESG initiatives. However, internal audit has an opportunity to become trusted advisors and take on more of an influential role when it comes to those first step.
How can internal audit provide the greatest value?
Organizations should reflect on the experiences they had in the early days of SOX and focus on identifying and understanding what the key controls of ESG will be. Where SOX was focused exclusively on financial reporting, ESG falls into that category of “everything else”. It comes down to the accuracy and reliability of the information. But how does an organization go about achieving that? The same way financial reporting was achieved with SOX.
Organizations have become comfortable with their financial reporting. They have been measured according to their financial results for a very long time. ESG in audit is different. It’s broader. It covers more ground and organizations will need to take some time to comprehend how to effectively turn the foundations of ESG into meaningful reports. Although it may be more complicated, the underlying processes that have been used for Sarbanes-Oxley for the last 20 years can be leaned on as a starting point when addressing ESG and identifying a methodology for assurance.
ESG presents a tremendous opportunity for internal audit to make an impact within their organizations. Because it is still evolving, and new guidelines and mandates are being released every day, a good strategy for internal audit would be to start small and identify those ESG factors that can be quickly included into your existing audit plan. Whether that’s reducing overall energy consumption throughout your office or working more closely with Human Resources to ensure new-hire practices are following appropriate guidelines, acknowledging the industry your organization resides in, understanding its risk landscape, and identifying a best-practices framework will give you the direction you need to successfully navigate ESG.
If there is one takeaway from the lessons learned when SOX was first implemented, it’s that those in the internal audit profession should avoid taking the “wait and see” approach with ESG. ESG is here and is gaining exposure and traction every day. The social ramifications of ESG alone should be enough for organizations to sit up and take notice. Understanding how to audit ESG — knowing your organization’s metrics and targeted reporting requirements, what to audit against and include in the final audit report — will better position you for success as a trusted advisor within your organization. Fill those essential Subject Matter Expert gaps early on with Audit International, identify and engage with key stakeholders, and avoid the reactionary trappings and costly mistakes of waiting too long and scrambling for solutions.
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 now bring you the second part in this three part series – Having introduced the initial concepts of what is involved with auditing organizational culture in the first article of this three-part series, we now can begin the process of drilling down and more closely examining the first five of the top ten tips to conduct a culture audit.
Identify your cultural levers:
The first step to successfully conducting a cultural audit is to identify the daily management activities that occur throughout the organization – your cultural levers. These levers look to align the culture we desire with the day-to-day activities of everyone in the organization. If we understand what leaders focus on to deliver this alignment, then we have a starting point for identifying what to test to provide our opinion on the effectiveness of culture.
Cultural levers often vary from organization to organization, so you need to work with management to identify what is influencing behavior within your specific organization. However, there are areas that I would expect to see. Published value statements are significant and an indication of what should be happening. Leadership is also significant, not just at the top but cascading throughout the organization at all levels. In this context, the organization’s approach to people management is vital with the impact this has on encouraging the behaviors that are needed for success. However, culture goes much deeper and is present in the management of other resources, including areas such as customer engagement, complaints handling, supplier management, corporate responsibility, risk management structures and profile, and internal and external communication.
This may appear daunting, but a well-organized approach to assessing each lever can quickly identify areas that are not truly aligned with the espoused values; a clear indicator that desired culture is not operating as expected.
The next four tips examine these cultural levers more closely to illustrate what they mean and to help inform you about the questions you might want to consider testing in order to arrive at an opinion on the organization’s culture.
Reputation:
Employees watch what leaders and key individuals in organizations do and how they operate. They see the dissonance between what the organization is saying, both in its external and internal communication, and their lived experience of working there. Assessing whether there is alignment is a key aspect of any audit of culture. This is even more important given the increased focus over recent times on aspects of corporate and social responsibility and the push for Environmental, Social, and Governance (ESG) activity from investors. Acquisitions of ‘greenwashing’ in your communications can be hugely damaging. This means that it is important to pay attention to external reputation and its alignment with internal messaging and should be considered across all social media.
Leadership:
The third tip is all about the examination of leadership’s role in owning and managing the culture in the organization. In internal audit, we need to examine whether this is occurring both at design and operational effectiveness levels. We are there to check that the activities of leaders are aligned with the espoused values and are supporting the delivery of the business strategy. In our audit work we should be looking for a consistency of message and actual managerial behavior. Leaders play a pivotal role in managing the business such that there is consistency across activities and that they work toward delivering the required culture for success. To do this practically, we need to build audit programs that look for evidence of areas such as misalignment in leadership actions and customer-centric examples that manifest in the practical activities of front-line colleagues. Leadership should be able to clearly demonstrate actions that they have conducted that help move the organization closer to accurately living the culture and evidence-measurement activity that supports this.
In this context, during an audit, I would expect leaders to be able to articulate how they ensure the culture is embedded through their team’s day-to-day activities, including examples of how they role model the culture in their own activities and interactions. Interviews will form a significant part of assessing these. However, data analytics can also be used to examine areas such as communications from leaders over a period of time looking for references to culture.
Simply put, what you are looking to establish here is whether the fine words on a page have a living connection with reality and link through to a real impact on the delivery of the organization’s strategy.
People management:
This leads us to the next cultural lever – people management. The key here, as with all aspects of cultural audit, is alignment. Across the entire employee lifecycle the behaviors we need to exhibit for the business to be a success need to be front and center. This starts with the employment brand, which should signal to potential recruits what the organization’s values are and includes the testing of new recruits against this. Objectives need to be set not only about what is needed to be delivered in terms of financial results, for example, but also how these results will be achieved.
Performance management needs to be expertly conducted to explore the colleague’s contribution to delivering organizational success in the way we want it delivered. This should be a continual process and include ongoing dialogue, not just an annual form-filling event. Promotion decisions should clearly consider this aspect and signal to all colleagues how behaving in the right way counts for personal success.
In developing your audit program, you need to consider all aspects of the employee lifecycle: attraction, reward, management, development, and exiting colleagues. In reviewing all these aspects, you need to be cognizant as to where the controls are operated. In most organizations, while the Human Resources function is likely to have a key role in the design of many of the practices mentioned, the management of the risk and operation of the controls largely sits within the business units of the organization. That is the place you need to be testing reality, not just within the HR function.
Identify key processes and assess alignment:
Next, we move on to two heavily connected cultural levers: process and change. When reviewing your organization, a key step is to identify the processes that are critical to the management of the organization’s culture. From this, you can review whether their operation is consistent with the outlined culture. In this case, we mean the culture promoted not only to your employees but outside your organization through your brand and external image to customers and other important stakeholders.
Employees, in their scanning of the organizational environment, will spot processes that do not sit well with declared ideal behaviors and values, where potentially the organization is looking to put short-term gain before longer-term goals. If these exist, it sends a huge signal to customers and colleagues that leadership does not really mean what they say. Included in these key processes are likely to be many of the internal processes around people and supplier management, but, most significantly, processes around how you deal with customers and how you respond to their feedback and complaints.
Alongside this, consideration needs to be given to how the organization’s change programs identify how changes they are looking to enact to systems and processes promote the desired culture. Change programs are a key touch point where the organization can ensure that the culture is being reflected in operating practices. However, they can also be a point of risk. Delivering efficiencies, while at the same time undermining the desired culture, can create problems that are hugely difficult to unpack.
Next up, in the third and final installment of this article series, Audit International finish identifying and discussing the remaining top ten tips to audit culture and conclude the journey that set out to help you deliver cultural insights within your organization. We hope you’ll stick with us.
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 understand auditing organizational culture is a challenging area for internal audit. Culture is dynamic, and regularly changing. Successful auditing of culture requires a holistic approach across the internal audit function covering the development of internal auditor skills, adjustment to audit methodology, and buy-in from the business regarding the value insightful culture auditing can bring.
In this first article of a three-part series, Audit International examine and discuss the various factors for successfully auditing and influencing culture in your organization.
What is organizational culture, and why does it matter?
Before looking at how you audit culture, it’s necessary to first have a good understanding of what you mean by culture and why it’s important to organizational success.
The classic definition is around the phrase coined by Charles Handy, “the way things are done around here”. While helpful for us to gain insights into auditing culture, we need to unpack this further. Culture is about the interaction between values and behaviors and how these are seen in the organization’s activities and interactions with the range of stakeholders it has (e.g., employees, customers, suppliers, and society).
Top ten tips:
Given the fact that you are reading this article, hopefully you are already convinced that internal audit has a role to play within the organization when it comes to assessing culture. You may already be on this journey delivering cultural insights through your work to your Board, or you may simply be interested in learning more about how to begin this journey. Whichever stage you find yourself, the following top 10 tips will provide you with some initial and practical thoughts that provide a view on culture and the direction needed to influence both management and the Board.
1 – Identify your cultural levers
2- Reputation, Identify whether the organizations actions and messaging, internal and external, are aligned
3- Leadership, Do they own and manage the culture?
4- People Management, Is desired culture integrated into people-management activities?
5- Identify key processes and access alignment.
6- Auditing culture, is this holistic approach being considered by a wide range of stakeholders?
7- Be sure that you consider both design and operating effectiveness.
8- Don’t go for a grand plan.
9- Collaborate with your business colleagues, independence is a mindset.
10- Upskill all auditors at all levels.
In the coming second and third articles of this three-part series on auditing culture, Audit International will take a closer look and provide a more in-depth examination of each of these suggested ten tips. These follow-up articles will offer examples and provide opportunities to more successfully audit and influence the culture at your organization.
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 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”
