Auditoria Mito o Realidad
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Transcript of Auditoria Mito o Realidad
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Shirley Jeeban
Acting Head of Internal Audit, Musanada
5th April 2011
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Tradition:
Crisis:
Internal Audit and Risk:
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Brief History of Internal Auditing
What is Risk Based Internal Auditing?
Risk Based Internal Auditing Advantages .....and potential difficulties
The 10 Deadly Sins of Risk Based Auditing
Summary
Today ..
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Necessity created internal auditing and is making it anintegral part of modern business. No large business can
escape it. If they havent got it now, they will have tohave it sooner or later, and, if events keep developing asthey do at present, they will have to have it sooner.
Arthur E. Hald 1944
Internal Auditing Brief History
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Internal Auditing a developing discipline
Early 20th century protection from theft and later
broader financial transactions;
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USA 1957 Statement of Responsibilities of Internal Audit
Reviewing and appraising the soundness, adequacy, and application ofaccounting, financial, and operating controls.
Ascertaining the extent ofcompliancewith established policies, plansand procedures.
Ascertaining the extent to which company assets are accounted for, andsafeguarded from losses of all kinds.
Ascertaining the reliability of accounting and other data developedwithin the organization.
Appraising the quality of performancein carrying out assignedresponsibilities.
Internal Auditing a developing discipline
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1978 IIA US Standards:
Internal auditing is an independent appraisal activity. It is acontrolwhich functions byexamining and evaluating the adequacyand effectiveness of other controls. The objective of internal auditing isto assist members of the organization in the effective discharge of their
responsibilities. The audit objective includespromoting effective controlat reasonable cost.
Developing Risk Thinking
COSO 1992: linked traditional internal controls to protecting against risks;
2000-02: Corporate Governance guidance explicitly talked ofManagements Responsibilities in respect of risk management and internalcontrol And in relation to all aspects of an entitys business
Internal Auditing a developing discipline
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2004: The modern worldwide definition:
Internal Auditing is an independent, objective assurance and consultingactivitydesignedto add value and improve an organization's operations. Ithelps an organizationaccomplish its objectives by bringing a systematic,disciplined approach to evaluate and improve the effectiveness of risk
management, control, and governance processes.
IIA UK:
The role of internal audit is to provide independent assurance that an
organization's risk management, governance and internal controlprocesses are operating effectively. Internal auditors dealwith issuesthat are fundamentally important to the survival and prosperity ofany organization. They look beyond financial risks and statements toconsider wider issues such as the organization's reputation, growth,its impact on the environment and the way it treats its employees .
Internal Auditing a developing discipline
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David Griffiths (UK) 2006:
The main aim of internal auditing is to help the organization achieve its
objectives
Arisk is a set of circumstances that hinder the achievement of objectives.
An internal control is a process which manages the risks.
Risk Based Internal Auditing Definition
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Risk based internal auditing is an audit approach designedto provide assurance that the business is appropriatelymitigatingSIGNIFICANT risks to the achievement ofobjectives
ControlsRisks
Objectives
Risk Based Internal Auditing Definition
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Risk Based Internal Auditing Advantages
ExternalEnvironment
Strategy
Operations
Policies &Procedures
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POLICEMAN OBJECTIVE BUSINESS PARTNER
Risk Based Internal Auditing Advantages
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The potential for Internal Auditing to become amore attractive profession than we have beentraditionally.
Attracting the best people.
Risk Based Internal Auditing Advantages
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When I grow up Iwant to be anInternal Auditor
Risk Based Internal Auditing Advantages
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RiskbasedAudit
ReducedCost
TargetedResources
Risk Based Internal Auditing Advantages
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My business does not have Enterprise Risk Management (ERM) yet?- consult
- management input
- share outputs
What about compliance checks?- focussed
- as long as policies/procedures address objectives / risks
Audits perceived as important by management may disappear
- Education
Closer working relationship with management may compromiseindependence
- Boundaries
- Education
Potential Difficulties
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The 10 Deadly Sins of Risk
Based Internal Audit
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Audit Plan - Still auditing low risk areas;
Coverage of the whole business;
Spending time on minor risks within an audit area;
Auditing all the controls, not just key controls to key
risks;
(1) We want to do Risk Based Audit but
were scared
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Overcomplicated low level Risk Assessments;
Risk Registers develop a life of their own multiplyingand mutating;
Success judged by number of risks rather than effectiveidentification ofkeyrisks and emerging risks
(2) Death By Risk
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(3) Risk to what?
We forget:
Controls
Risks
Objectives
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External Audit looks backwards, Internal Auditshould look forwards;
Internal audit only looks to the past to inform thefuture;
Looking at risks to the achievement of objectives
naturally gives a future focus, but it can be wasted;
(4) Looking Backwards not Forwards
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New skill sets required;
Real business / strategic understanding;
Understanding of risk and assurance;
Logical thinking, not checklists;
Asking so what? in all that we do and allthat we find;
Ability to focus on whats important, and thecourage to leave whats not.
(5) Forgetting to train our auditors
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(6) The controls checklist is still king
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RISK: CONTROL: TEST PLAN: RESULT: RECOMMENDATION:
No succession plan inplace
Succession Plan Obtain successionplans for xxxx
No succession plans Put succession plan inplace.
SAMPLE RISK REGISTER EXTRACT AND AUDIT TESTING:
OBJECTIVE: RISK: CONTROL: TEST PLAN: RESULT: RECOMMENDATION
Businesscontinuity
Staff in keypositions are
absent / leave thebusiness
(1) Appropriatenotice
periods forkey staff;(2) Short and
long termsuccessionplans in place
(1) Obtain list ofkey staff /
positions(2) Check notice(3) Review
adequacy ofcontingencyplans
Notice periods ok,short term
contingency ok,lack of longer termplanning
Introducesuccession
planning acrossthe business linkedinto careerdevelopmentplans. This shouldinclude a one tofive year timeperiod.
MORE APPROPRIATE:
(7) Mixing up objectives, risks and controls
r
a
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We may know weve changed . But the business wontknow unless we tell them.
(8) Forgetting to educate the business
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Controls are only relevant when linked to a risk;
A risk is only a risk when linked to an objective;
Management want to know what our findings mean tothe business;
(9) Reporting on controls not risks
ControlsRisks
Objectives
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Risk Registers remain in InternalAudit.
Wasted opportunities to discuss
risk with management.
(10) Keeping the benefits to ourselves
Audit Management
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Many businesses have made moves towards risk based
Internal Audit; Business wide focus.
BUT:
Unless we eliminate the 10 Deadly Sins, we will notrealize the full benefits;
Internal Auditors need to think OBJECTIVE RISK CONTROL in everything they do;
Risk based thinking throughout the audit process isessential;
Risk based auditing must not be just a buzzword.
CONCLUSIONS
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Thank You!