A Consultative Approach To Auditing

 

A Consultative Approach Appr oach to Auditing Presented by:

Rachael Moyer

Business Consulting Solutions

 

Objectives  Internal  IIA

Audit vs. Consulting

Standards or Consulting

 !hy

Internal Auditors as Consultants

 Consulting

S"ills or Inter Internal nal Auditors

 

Only #$% o &'()) audit co**ittee *e*bers surveyed are satis+ed that their co*pany,s Internal Audit unction delivers Internal value.

 

!ho are the internal custo*ers-

 

IA Custo*ers Audit

Co**ittee

Auditee Senior

Manage*ent

/ternal

Auditors Regulators

 

Internal Audit vs. Consulting

Internal Audit 0ocused on historical

Consulting 0ocused on uture

data

activity Results in reco**endations reco**e ndations or

Results in an audit report Initiated by CA Results provided to Audit Co**ittee

i*ple*entation Initiated by business *anager Results provided to re1uestor

 

IIA Standards 2 3e+nitions

4Internal auditing is an independent' 4Internal objective assurance and consulting

activity designed to add value and i*prove an organi5ation6s operations. It helps an organi5ation organi5at ion acco*plish its objectives by bringing a syste*atic' disciplined approach to evaluate and i*prove the e7ectiveness o ris" *anage*ent' control' and governance processes.8

 

IIA Standards or Consulting  &))).C&9

he nature o consulting services *ust be de+ned in the internal audit charter.  &&;).C& < Internal auditors *ay provide provi de consulting services relating to operations or =hich they had previous responsibilities. responsibilities. 

&&;).C>

 

IIA Standards or Consulting &>&).C&

< he chie audit e/ecutive *ust decline the consulting engage*ent or obtain co*petent advice and assistance i the internal auditors lac" the "no=ledge' s"ills' or other co*petencies needed to peror* all or part o the engage*ent. &>>).C& < Internal auditors *ust e/ercise due proessional care during a consulting engage*ent.

 

IIA Standards or Consulting 1220.C1

1220.A1

Relative and Relative and e/tent oco*ple/ity =or" e/tent oco*ple/ity =or" Cost?Bene+t

Cost?Bene+t

@eeds and e/pectation o the client

Ade1uacy?7ectiveness Probability o signi+cant errors

 

IIA Standards or Consulting 

>)&).C& < he chie audit e/ecutive should consider accepting proposed consulting engage*ents based on the engage*ent,s potential to i*prove *anage*ent o ris"s' add value' and i*prove the organi5ation,s operations. Accepted engage*ents *ust be included in the plan.

 

IIA Standards or Consulting 

>&>).C&



>&>).C>  >&>).C; < !hen assisting *anage*ent in establishing or i*proving ris" *anage*ent processes' internal internal auditors *ust rerain ro* assu*ing any *anage*ent responsibility responsibility by actually *anaging ris"s.

 

IIA Standards or Consulting >&;).C& < Internal auditors *ust 

incorporate "no=ledge o controls gained ro* consulting engage*ents into evaluation o the organi5ation,s control processes. 

>>)&.C&



>>&).C&



>>&).C>



>>>).C&



>>>).C> < 3uring consulting engage*ents' internal auditors *ust address controls consistent =ith the engage*ent,s engage*en t,s

objectives and be alert to signi+cant control  

IIA Standards or >>#).C& Consulting >;;).C&   

>#&).C&



>##).C& >##).C> < 3uring consulting engage*ents' governance' ris" *anage*ent' and control issues *ay be identi+ed. !henever these issues are signi+cant to the organi5ation' they *ust be co**unicated to senior *anage*ent and the board.





>$)).C&

 

Objectives  Internal  IIA

Audit vs. Consulting

Standards or Consulting

 !hy

Internal Auditors as Consultants

 Consulting

S"ills or Inter Internal nal Auditors

 

!hy Internal Auditors as Consultants  $%

sa= the audit as a routine chore that varied little ro* year to year year..

 ust

over )% o the co*panies said their auditor did not raise any issues or ideas that =ere used in their business to enhance their processes or decisions.

 

!hy Internal Auditors as Consultants !e "no= COSO. !e "no= SO. !e,ve peror*ed that sa*e accounts payable audit the sa*e =ay ; years in a ro= =ith no *ajor audit +ndings to date. It,s ti*e to inuse our IA depart*ent =ith creativity creativity and as" ourselves' =hat *ore can =e be doing d oing or our internal custo*er- Do= can =e peror* this audit di7erently to add greater value-

 

!hat Are he Ris"s Ris"

o Political /posure

 Project

0ail ailure ure  Manage*ent /pectations  ConEict

o Interest

 Maintaining

Independence and Objectivity



Consulting Assign*ent

 

Consulting S"ills or Auditors  Include

consulting services in

annual audit plan?budget  3e+ne and co**unicate scope early and oten  Fain

client buy9in  3on,t be araid to say no

 

Consulting S"ills or Auditors  Identiy

process i*prove*ent

areas RGA

< Real Galue Added

BGA

< Business Galue Added

@GA

< @on9Galue Added

 

ips or a Consultative  ips Approach to Audit  Strive to understand the business on a deeper level  Align

resources resour ces to critical areas o ris"



3evelop in9house e/pertise  Build trust through relationships  O7er

so*ething e/tra

 

S

ea" business not audit

@o= It,s Hour urn 

3oes your internal audit depart*ent o7er consulting services-



!hat concerns?1uestions do you have that this presentation did not address-



!hat advice can you o7er to the person sitting ne/t to you about internal audit



and?or consulting!hat is one thing you learned ro* today,s presentation or net=or"ing-

 

Contact Inor*ation

RachaelJ0lu/BCS.co* $&>.(#;.>;&(

 

Hou ou  han" H