Is Your Audit Department Highly Effective?

6-12-2019
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Is Your Audit Department
"Highly Effective"?
Toby DeRoche
MBA, CIA, CCSA, CRMA, CFE, CICA
About Jim Kaplan, CIA, CFE
 President and Founder of AuditNet®,
the global resource for auditors
(available on iOS, Android and
Windows devices)
 Auditor, Web Site Guru,
 Internet for Auditors Pioneer
 IIA Bradford Cadmus Memorial
Award Recipient
 Local Government Auditor’s Lifetime
Award
 Author of “The Auditor’s Guide to
Internet Resources” 2nd Edition
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About AuditNet® LLC
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Introductions
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IMPORTANT INFORMATION
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Speaker Bio
Toby DeRoche MBA, CIA, CCSA, CRMA, CFE, CICA
Senior Market Development Consultant
Experience
• Audit Manager at a Fortune 100 company
• Senior Market Development Consultant at
Wolters Kluwer
• Works with organizations that are looking for
software solutions to their audit, risk and
compliance needs
Session Overview
 Today's fast-paced and evolving business environment requires internal
audit to consider its capabilities and needs to ensure appropriate strategic
planning. How can CAEs develop strategic plans that result in their
stakeholders viewing the audit function as “highly effective”?
 Our research has found an approach that builds on three dimensions of
effectiveness that must be addressed to be highly effective:
 Meeting stakeholder expectations
 Operating core processes
 Conforming to internal audit standards and applicable regulatory
requirements
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Session Objectives
 In this session, participants will:
• Discuss the need for and importance of strategic planning within the
internal audit function
• Explore the 3 dimensions that contribute to a highly effective internal
audit function
• Populate a framework to understand how processes and expectations
are aligned and where changes need to occur
• Develop an initial strategic vision based on an understanding of
stakeholder expectations
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POLLING QUESTION 1
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TeamMate 2018 Insights Survey Results
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Why develop a strategic plan?
To increase the value that
the organization receives
from internal audit
To improving the
alignment of internal
audit with the overall
strategic and business
objectives of the parent
organization
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Key Success Factors:
Top 3 Survey Responses
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Finding the right human
resources and skills
Ability to train existing staff
and help employees
develop new skills
Executive management
support
Keep these success
factors in mind as we
work through the
strategic plan.
Dimensions of Effectiveness
• Addressing stakeholder needs and expectations
• Operating core internal audit processes
• Conforming to The IIA Standards and any
applicable regulatory requirements
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Conforming to the IIA Standards
 Always start with the basics of conformance as a foundation for
growth:
 IIA International Standards
 Applicable local regulatory requirements
 Any specific industry regulations
The internal audit
strategic plan must
address all three
dimensions of the
Internal Audit
Effectiveness Model
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Operating Core Internal Audit Processes
 Consider all aspects of the audit department:
 Risk Assessment
 Performance Measurement
 Working Practices
 Knowledge Management
 Human Capital
 Partnering
 Technology
 Communications and Reporting
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Operating Core Internal Audit Processes
Under each core
process you can list
the specific
activities that
would be
developed and
deployed as part of
your strategic plan.
The summary could
be used to develop
a tactical plan for
each core process.
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POLLING QUESTION 2
Internal Audit Planning Balanced Scorecard
Under each core
process you can list
the specific
activities that
would be
developed and
deployed as part of
your strategic plan.
The summary could
be used to develop
a tactical plan for
each core process.
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Aligning with Stakeholder Expectations
 Populate a framework to understand how processes and expectations
are aligned and where changes need to occur.
 Stakeholders expect high quality assurance work
 It is critical to identify key, strategic risks
 Business knowledge is expected
Stakeholder Expectations Standards Regs Process
Assessment
Providing
Assurance
Expect #2 Expect #3 Expect #4 IIA Standards
Human Capital
Risk Assessment
Working Practices
Partnering
Knowledge
Management
Technology
Communications
Reporting
Performance
Measurement
Use the worksheet to ensure and
communicate how enhancements to core
processes will support and enable meeting
stakeholders expectations
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Common Expectations
 The IIA’s global stakeholder study identified a number of expectations
common to many organizations:
 Stakeholders expect high quality assurance work
 It is critical to identify key, strategic risks
 Business knowledge is expected
POLLING QUESTION 3
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Strategic Vision
 Develop an initial strategic vision based on an understanding of
stakeholder expectations:
• Aligning with Stakeholder Expectations
• Internal Audit Core Processes
• Building the Foundation
Developing a Vision
• The strategic planning process for internal audit begins with the development of
the strategic vision — a picture of what the internal audit function would look like
at the end of its two- to five-year strategic planning horizon.
• The first step in this process is to understand, articulate and validate stakeholder
expectations. There are three key steps in this process:
1. Meet with key stakeholders from both the audit committee and executive
management
2. Share your ideas about potential areas of focus for internal audit
3. Ask your key stakeholders to describe their expectations of internal audit and where
they see the internal audit function adding value in coming years
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POLLING QUESTION 4
Further reading
 Strategic Planning for
Internal Audit: A CAE’s
Guide to Driving Value
Creation
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6-12-2019
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Thank you!
For more information visit www.teammatesolutions.com
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Is Your Audit Department Highly Effective?

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