Internal Audit
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The first step in performing internal audit services is to understand the audit universe at the macro-level, including the assessment of both internal and external risk factors. Our risk model is designed to develop a risk rated internal audit universe to specify the frequency or cycle of internal audit requirements for each of the identified audit areas of a company. This is the basis of the annual internal audit plan. An internal audit plan can then be developed and approached in phases with the first phase addressing internal audit areas that have been identified as high risk and/or significant. Internal audit activates focus on asset protection, loss prevention, compliance, internal controls and/or fraud. The key steps in our internal audit service methodology include:
- Review the risk model
- Review the risk assessment for each audit area
- Timing and performance of audit procedures
In performing an internal audit, we work closely with management to develop an internal audit plan designed specifically for the stated objective. After assessing the internal audit procedures and findings, we compile the results of the audit and report preliminary issues to management as either 1) a significant reportable issue, 2) other reportable issue or 3) discussion issue. The formal report then includes recommendations for each reportable issue and contains an internal control environment rating for each of the areas audited.
Outsourcing
While maintaining objectivity and independence, outsourcing your internal audit function provides the technical proficiency related to core processes and assessments. Additionally, this helps to eliminate the constraints of managing, attracting and retaining internal audit staff and allowing you more time to devote to the strategic plans of your organization.
Co-sourcing
Specific skill set needs vary from one organization to another, but internal audits generally require individuals with experience in management planning and review, financial reporting, IT and operations. By augmenting your existing staff, your organization benefits from the niche audit skills that have been traditionally difficult to maintain internally.
Quality Assurance Reviews
Now more than ever, the quality of the internal audit is critical. Stakeholder expectations, best practices, and internal/external compliance requirements: How does an organization’s internal audit stand up against the Institute of Internal Auditor’s standards? Weaver's Risk Advisory Services team has the experience to examine the internal audit function and tax organization’s assertion regarding fulfillment of expectations of the internal audit activity as well as its conformity and benchmarking. We can provide an external QAR or an inspection of the internal self-assessment. The goal of the QAR is to provide recommendations for improvement and create new efficiencies within the internal audit function while providing third party assurance to external parties.
As part of Weaver's engagement approach, we review and test procedures and results of a company’s self-assessment. In addition, we conduct interviews with the CEO, CFO and/or the vice president of finance (to whom the Chief Audit Executive/equivalent directly reports), members of the internal audit staff, audit customers, senior executives, the audit committee chair and a representative of the external auditors.