In today’s time auditors are much more equipped to identify opportunities for enhancement – as adding value is widely considered an integral part of the internal audit process. In the recent past, role of internal auditor is being redefined. The new role is broader, more inclusive and sets expectation of adding value by internal auditors to the audited entity when performing their work assignments. Internal Audit engagements in older days focused on verifying compliance with policies and procedures. There were
Tag: Risk Management
Key Considerations in Risk Based Internal Audit
Even when risk identification is primarily a management responsibility, internal auditors play a pivotal role in risk management by evaluating the process controls highlighting critical risks in achievement of business objectives as well as providing assurance regarding adequacy of controls in respect of existing and emerging risks. A regular and effective risk-based audit program is essential to achieve these objectives. It helps auditors in identification of potential risks, fraud and errors based on which the auditor can suggest areas of
Internal Audit – Beyond The Data
While data analytics serves as a powerful tool used in organization to gain insight into operations, they may also be a source of risk. Feasibility to reveal secrets hidden in voluminous data makes use of the data analytics difficult to resist. There are tools enabling the organization to bring efficiencies in operations, improve decision, enhance agility, identify market potential etc. Internal audit is regular user of data analytics during the ordinary course of discharging its responsibilities to the organization. Internal
Understanding the three lines of Defense Model
Introduction: The Three lines Model helps organizations to identify the framework and processes that best suits the objectives of the organization and simplifies Risk Management and Governance. A governing body is eventually responsible for governance, which is achieved through the actions and activities of the governing body as well as management. A Governing Body in any organization receives periodic reports from its management on various activities, hence both governing body and management depend on Internal Audit to provide Independent and
Fighting Fraud Using COSO: A Practical Approach by Internal Auditor
Fraud is a significant threat to organization, especially a complex global organization operating with multiple businesses and geographies. The situation gets more complicated now as opportunities and justification are enhanced during COVID-19. An ACFE report says, organizations typically lose 5 percent of revenues to fraud annually. COSO framework may be used to develop a comprehensive mechanism to mitigate frauds effectively and proactively. Frauds in the organization would have an adverse impact on operations, profitability, employee morale and reputation. Internal audit
The Three Lines Model: July 2020 – An Oversight
The Three Lines Model has replaced previously known Three Lines of Defense model in July 2020. This updated Model helps organizations identify structures and processes that help in achievement of objectives and facilitate better governance and risk management. The model applies to all organizations and is optimized by:– Adopting a more flexible principles-based approach suiting objectives and environment of the organization.– Concurrent focus on contribution risk management as well as to matters of “defense” and protecting value.– Explaining the roles