Risk and Control: Ideas for a better tomorrow
A contrarian view on Risk and Control to make tinkle curiosity leading to creative and critical thinking.
Recently a Chief Audit Executive had asked me about what are the Internal Audit Standards (IPPF) which are applicable for fraud. Since it was coming from a person whom I respect, I decided to do research before a response can be given. Here is my commentary. 1210 – Proficiency Internal auditors must possess the knowledge, […]
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Recently I had the honor of moderating a session on “Internal Audit: The first line of defense”. The panel consisted of: A head of internal audit/ CRO A CRO A risk professional and A Risk advisory partner from a big 4. Some of the insights from the session are: Internal Audit is the Third line […]
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IIA has revised standards on internal auditing. The revised standards become effective from January 2017. One of the new year resolution of Internal auditor should be to update their internal audit practices and procedures, including internal audit charter to reflect the changes done in in the IPPF. See here 1130.A3 – The internal audit activity may […]
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IIA Inc has revised standards on internal auditing. The revised standards become effective from January 2017. One of the new year resolution of Internal auditor should be to update their internal audit practices and procedures, including internal audit charter to reflect the changes done in in the IPPF. Revised IPPF can be downloaded from IIA. One […]
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Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. – Definition of internal audit. I believe Internal audit has […]
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I had an interesting debate recently with another CAE over recommendation. In his organization, they do not give recommendations in Internal Audit Report. I was insisting on giving recommendation as it is suggested by IPPF. He had challenged me to provide IPPF reference specifying that in an assurance assignment recommendation has to be given. I […]
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“Audit Committee Members don’t understand the risk. Promoters feel that Audit Committee are too much into finance. The Independent directors forming audit committee are retired person from government or retired partners from professional firms. They think only about finance and missing the bus for emerging risks. They are not geared up for thinking in terms […]
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“Can a promoter’s family member be appointed in Internal Audit Department?” This innocuous sounding questions had created a surge of activities in a forum. Legal perspective: In case of a family member of a Promoter appointed to a place of profit, it requires shareholders’ approval by special resolution and disclosure in related party disclosure. In […]
Continue ReadingThis is a work of fiction. If you find any similarities with a real life situation or a person then you should ignore real life situation/ person. As author of this work has limited the scope of this work to fiction. A fictional dialogue between Management and Internal Audit. Management: I need you to look […]
Continue ReadingResource Management and IPPF. IPPF requires that internal audit activity does a proper resource management. Standard Requirement Interpretation 1110 Board to approve internal audit budget and resource planBoard to inquire with management and CAE to determine the inadequacy of scope and resource limitation Internal audit cannot execute an internal audit plan without proper resources. With […]
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