The World of Internal Audit. A Day in the Life of a New Internal Auditor

Transcription

1 The World of Internal Audit A Day in the Life of a New Internal Auditor

2 Agenda Intro / Background Internal Audit Activities First Year in Internal Audit Internal Audit Skills Homework Q & A

3 Intro / Background A little bit about me

4 Christine Hovious, CIA, QIAL, CRMA Background First internal audit role (how that came to be) Experience Involvement with The IIA IAEP CIA Chapters and IIA Facilitator Current role

5 Internal Audit Activities

6 Internal vs. External Audit Activities Internal Audit Part of the organization Holistic view Forward-looking Process and risk driven Value adding External Audit Outside party Materiality Historical Financial Statements Internal Audit Services by External Auditors Outside party Usually more than one client Temporary (mobile office) No holistic view (usually for SMEs or temporary resource)

7 Internal Audit Activities Vary Financial audits Sarbanes-Oxley or other required regulatory financial testing Operational audits Inventory audits Compliance audits Systems or IT audits Different size internal audit activities Global or local One organization or many Assurance and/or consulting engagements

8 First Year in Internal Audit Assurance and Consulting Engagements

9 Assurance and Consulting Engagements 1. Receive engagement assignment 2. Learn what they do and how they do it 3. Perform research, benchmarking, analysis 4. Provide recommendations on how they can do it better 5. Go onto the next engagement

10 Assurance and Consulting Engagements Audit engagement Understand the content and purpose of the audit Research / Interview / Investigate / Learn Obtain an understanding of the area or process being audited Determine risks and then assess significance Impact and likelihood Form engagement objectives and scope

11 Assurance and Consulting Engagements Create the work program What to test, how it will be tested, who will test Perform testing (fieldwork) Identify sufficient, reliable, relevant and useful information Analyze and evaluate the information/data Determine engagement results/conclusions Provide recommendations Obtain management s action plan and timeline

12 Internal Audit Skills What makes a great internal auditor

13 What Makes a Great Internal Auditor Be curious ( WHY should be your favorite word) Ethical with integrity Professional skepticism Great communicator Thinks like a crook or fraudster Enjoys challenges and problem solving (to get to the root cause) Likes change and wants to continuously learn Wants to partner with and add value to an organization

14 Why I LOVE Internal Audit You get to think like a crook Work/life balance Holistic view Partner with the organization Not doing the same thing over and over Communicate with a levels of management Determine next career move (exposure to all key organizational functions) Once you learn internal audit skills, you can be an internal auditor ANYWHERE!!

15 Do Your Homework Things to research

16 Things to Research Types of projects (financial, operational, assurance, consulting, etc.) Travel (where and how often (lots, none, little) and for how long) Industry specific, public or private, global or local if public, read their annual audit report What designations does the CAE hold Does the internal audit activity conform with the Standards Do they support certifications and/or professional development

17 Things to Research Are their internal auditors members of The IIA Do internal auditors move into the business What is their turn over (internal or external) Know The IIA s Standards Lastly Get involved with your local IIA chapter or institute, and make sure to tailor your resume to each organization and each position within that organization

18 Questions?

19 Additional Information Christine Hovious, CIA, QIAL, CRMA Managing Director, Global Certifications Strategy and Development Standards & Guidance Supplemental Guidance (practice guides)