Innovation In Internal Audit. Abdullah Al-Rowais, Chief Audit Executive, Mobily

Transcription

1 In Internal Audit Abdullah Al-Rowais, Chief Audit Executive, Mobily

2 What is? There are many definitions for.. The process of translating an idea or invention into goods or service that Creates Value or for which customers will pay

3 Invention is the "creation of a product or introduction of a process for the first time." Thomas Edison was an inventor. happens when someone "improves on or makes a significant contribution" to something that has already been invented. Steve Jobs was an innovator

4 Common link between & Internal Auditing Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization s operations. The process of translating an idea or invention into goods or service that creates value or for which customers will pay

5 Why discuss innovation in the context of internal audit? Internal audit is facing many challenges. Some of these are: The need to do more with less Minimize the impact of audit on business while maximize the insights Streamlining processes planning, fieldwork, reporting Getting the right resources Using technology to better effect Demonstrating the value added 5

6 Types of Product Marketing Process Organizational

7 Product

8 Product Informative Audit Reports ( Executive summary, classification of findings, Audit opinion)

9 Product Informative Audit Reports ( Executive summary, classification of findings, Audit opinion) Audit Advisory Letters

10 Product Informative Audit Reports ( Executive summary, classification of findings, Audit opinion) Audit Advisory Letters Thematic reporting

11 Product A tool we used to identify significant issue themes based on issues identified. A method to identify trends year over year. It s a vehicle to allow audit committee and management to focus on themes that are recurring and high risks

12 Product Informative Audit Reports ( Executive summary, classification of findings, Audit opinion) Audit Advisory Letters Thematic reporting Audit recommendation implementation benchmark

13 Process

14 Process Real risk-based audit

15 Process Real risk-based audit Annually used to create the Annual Audits Plan identify reviewable areas of greatest significance within the organization Per Audit Project used to identify areas within the scope of the audit that are most important test the most important controls, or tests the controls in more depth

16 Process Real risk-based audit Leverage technology (big data)

17 Process Real risk-based audit Leverage technology (big data)

18 Process Leverage technology (big data) Doing more with less Widen the data being examined. Use data analytics to improve risk coverage and get concrete results. Consider complementing excel spreadsheets, use specialized audit analytics tool. Examine abnormalities and ask for explanations

19 Process Real risk-based audit Leverage technology (big data) Apply professional skepticism.

20 Process Ask, ask, ask, skeptically but professionally. Feel OK to play it dumb. Ask for the purpose of business transaction, how does it relate to targets, how is it mapped to financial statements, why now?, etc.. How the company would be without it?

21 Process Real risk-based audit Leverage technology (big data) Apply professional skepticism Benchmarking & be a Benchmark and reference for others. (Use GAIN).

22 Process Real risk-based audit Leverage technology (big data) Apply professional skepticism Benchmarking & be a Benchmark and reference for others. (Use GAIN) Multidimensional audit coverage is the way.

23 Process Multi-dimensional audit coverage is the way. Auditing financials wearing operational glasses. Understand it operationally before judging it financially

24 Process Real risk-based audit Leverage technology (big data) Apply professional skepticism Benchmarking & be a Benchmark and reference for others. (Use GAIN) Multidimensional audit coverage is the way. Check QA of each audit assignment.

25 Marketing

26 Marketing Market IA products

27 Marketing Market IA products Communicate timely

28 Marketing Communicate timely Timely to be effective Among all stakeholders: Auditors, audit management, company s management, audit committee, board of directors

29 Marketing Market IA products Communicate timely Show ROI in Internal Audit

30 Marketing Market IA products Communicate timely Show ROI in Internal Audit Show Statistics

31 Marketing Market IA products Communicate timely Show ROI in Internal Audit Show Statistics Satisfaction survey in all 3 levels

32 Marketing Market IA products Communicate timely Show ROI in Internal Audit Show Statistics Satisfaction survey in all 3 levels

33 Organizational

34 Organizational The we Spirit

35 Organizational Team efforts is the Key.. Highly competent fully empowered audit team Motivating IA management Highly involved audit management in high risk issues

36 Organizational The we Spirit Build & maintain the confidence

37 Organizational Build & maintain the confidence Audit discoveries might be faced with resistance, do not shake your confidence in your audit discoveries. Stay committed to your value of integrity, accountability and independence

38 Organizational The we Spirit Build & maintain the confidence Identify the Innovators in IA

39 Organizational Identify the Innovators in Internal Audit Eager to learn. Curious. Patient. Don t stop thinking, even in free time. Not scared of failure. Don t love routine. Positive and optimistic.

40 Organizational The we Spirit Build & maintain the confidence Identify the Innovators in IA Expect & accept disagreements and varying views.

41 Organizational The we Spirit Build & maintain the confidence Identify the Innovators in IA Expect & accept disagreements and varying views. Stand up to what you see right.

42 Organizational The we Spirit Build & maintain the confidence Identify the Innovators in IA Expect & accept disagreements and varying views. Stand up to what you see right. Develop clear and transparent KPIs

43 We can t solve problems with the same kind of thinking that created them Albert Einstein Thank You! The real act of discovery consists not in finding new lands, but in seeing with new eyes Marcel Proust I am not sure who discovered water, but I m pretty sure it was not a fish Tom Kelley, IDEO The worst enemy to creativity is self-doubt. Sylvia Plath 43