Risk based Internal audit Balanced scorecard slide

Transcript:Risk based Internal audit Balanced scorecard slide:
Risk based Internal audit Balanced scorecard slide 10 CA Rajnikant M. Patel Concept of Internal Audit. Changing role of Internal Audit.( Traditional V/s Modern) Skill Set & Capabilities. Approach towards Internal Auditing with Reporting. Opportunities Content: Concept of Internal Audit Internal Auditing is an Independent, Objective assurance and Consulting activity designed to add value and Improve an Organizations’ operations. Internal Auditing is a Continuous process & not a One time event It helps improve effectiveness of Risk Management, control and Governance processes It involves Conducting pro-active Fraud audits to identify potential fraudulent acts, and Conducting post fraud investigation & identify Financial Loss and Control Breakdowns Internal Auditors are not responsible for execution of Company’s activities, but advise management & BODs regarding how to better execute their responsibilities. Internal Auditors typically Issue reports at the end of the each audit that summarize their Findings, recommendations, and any resources or action plans from management Role Of Internal Audit should ideally act as a strategic partner to business, by providing quality assurance on various critical risks that are crucial to achieving organization goals. What is Internal Audit? 5 Balanced scorecard slide 4 Objectives Of Internal Audit To Verify Correctness, accuracy and authenticity of the financial accounting & Statistical records presented to management Facilitate Early Detection and Prevention Of Frauds Undertake Special Investigation For the Management Comment on Design and operational Effectiveness of Internal Control System and the Internal Check System Changing role of Internal Audit (Traditional V/S Modern) Policing Role Focus on Financial Audit Manual Work Papers Traditional Internal Auditing Strategic Function Focus on overall business processes Use of Technology Modern Internal Auditing 9 Service Commitment expected: Skill Set and Capabilities Balanced scorecard slide 8 Skill Set & Capabilities Global Perspective Technologically adapt ( CAAT, Flowcharts, Risk mapping Tools) Creative Thinking and Problem solving Business acumen Strong Ethical Compass Superb Communication ( Written & Oral) Relationship Expert ( Interpersonal Skills) Approach towards Internal Auditing with Reporting Balanced scorecard slide 1 Planning Process of Internal Audit Understanding value chain Business Planning Market Development Business Development Pricing Strategies HR and Payroll related compliances Fixed Assets Management and Capex Information Technology Finance and Accounts Statutory Compliance Procurement - Procure to Pay Operational Efficiency Insurance Internal Audit Focus Areas Inventory Management Board and Leadership 14 Staff Management Admin Activities Manufacturing of Goods Logistics Inbound and Outbound Revenue – Order to Cash Sales promotion and Marketing Treasury Operations