INTERNAL AUDIT S ROLE IN MONITORING AND CONTROLLING INTERNATIONAL EXPOSURE

Transcription

1 INTERNAL AUDIT S ROLE IN MONITORING AND CONTROLLING INTERNATIONAL EXPOSURE NOVEMBER 28, 2017 Michael Vierheller Managing Director, Risk Advisory Services

2 CPE AND SUPPORT CPE Participation Requirements To receive CPE credit for this webcast: You ll need to actively participate throughout the program. Be responsive to at least 75% of the polling questions. Please refer the CPE & Support Handout in the Handouts section for more information about group participation and CPE certificates. Q&A Submit all questions using the Q&A feature on the lower right corner of the screen. Presenter(s) will review and answer questions submitted as time allows. *Please note that questions and answers submitted/provided via the Q&A feature are visible to all participants as well as the presenters. Technical Support If you should have technical issues, please contact LearnLive: Click on the Live Chat icon under the Support tab, OR call: Audio Audio will be streamed through your computer speakers. If you experience audio issues during today s presentation, please dial into the teleconference: , and use teleconference code: # 2

3 MICHAEL VIERHELLER, CPA MANAGING DIRECTOR RISK ADVISORY SERVICES PROFESSIONAL AFFILIATIONS American Institute of Certified Public Accountants Institute of Internal Auditors EDUCATION B.S., Accounting, Pennsylvania State University With more than 25 years of experience, Michael is a Managing Director of our Risk Advisory Services practice in the Greater Washington D.C. office and throughout the Atlantic region. He focuses on providing internal audit, risk advisory, Sarbanes-Oxley and financial and information technology consulting services, which includes performing risk assessments, conducting business process analyses and executing internal audit plans. He is also experienced in developing compliance review in accordance with the Sarbanes-Oxley Act, performing user acceptance testing on new system implementations, and assisting with the design, development and execution of regulatory compliance programs. Michael advises clients on opportunities to increase the effectiveness and efficiency of critical business processes through providing feedback on the use and costs of controls and assessing the functional performance of people, processes and technology. He has assisted clients with the review and implementation of financial systems as well as the development and implementation of Enterprise Risk Management (ERM) programs Prior to joining BDO, Michael was a risk and advisory services partner with a big four accounting firm. Michael also has several years of experience in advising clients on the effective use and implementation of technology solutions to assist with achieving business objectives. 3

4 TODAY S LEARNING OBJECTIVES At the conclusion of this course, participants will be able to: Describe an organization s risks related to international operations; Discuss internal audit s role in auditing international operations; and Identify key considerations in building and executing your internal audit plan. 4

5 INTERNATIONAL RISKS TO CONSIDER WHEN BUILDING YOUR INTERNAL AUDIT PLAN How do you identify risks associated with your organization? Does your footprint change the risk profile? Are your risks the same in every location? Understanding how your organization identifies and manages its risks? Does your organization have a robust risk identification and management process? Does this process include identification, scoring and mitigation efforts? How does your internal audit team identify the risk areas you want to include in your plan? What is your response? 5

6 THREE COMMON RISK AREAS FACING INTERNATIONAL OPERATIONS Compliance with Local Laws and Regulations Taxes Import/Export Employment Managing Complex Supply Chains How do we get goods from one location to another? Do we need contingency plans? Fraud and Corruption Concerns Some parts of the world are more susceptible to fraud and corruption 6

7 COMPLIANCE WITH LOCAL LAWS AND REGULATIONS What processes does your organization use to identify local laws and regulations? Is this process effective? Has your organization been impacted for noncompliance with local laws and regulations? Have there been any trends in the places your organization does business? 7

8 COMPLIANCE WITH LOCAL LAWS AND REGULATIONS What are some options for your internal audit plan? Review the process to identify changes in local tax laws Test compliance with local employment laws Perform procedures to review compliance with import and export compliance rules 8

9 MANAGING COMPLEX SUPPLY CHAINS What does your supply chain look like? What would happen if you had a disruption? What products are more critical? What parts of the supply chain are more at risk? 9

10 MANAGING COMPLEX SUPPLY CHAINS What are some options for your internal audit plan? Review the most critical products within your organization to determine implications of disruptions in your supply chain. Perform data analytics over entire supply chain to determine potential exposures and opportunities. Perform some modeling to run what-if scenarios. 10

11 FRAUD AND CORRUPTION CONCERNS Does our organization operate in areas around the globe that are more susceptible to fraud and corruption? Transparency International puts out a Corruption Index each year to help identify areas in the world where it is more susceptible for fraud and corruption. 11

12 FRAUD AND CORRUPTION CONCERNS Does your organization have effective Policies to guard against Fraud and Corruption? Is the organization culture one that is effective in managing against Fraud and Corruption? Has there been any issues in your organization in the past with regards to Fraud and Corruption? Have there been issues with other companies in your line of business with Fraud and Corruption? 12

13 FRAUD AND CORRUPTION CONCERNS What are some options for your internal audit plan? Review Policies that govern Fraud and Corruption Code of Conduct Procurement Policies Review processes over negotiating contracts and managing suppliers Select samples of contracts (test for compliance) Review process and documentation over gifts and entertainment 13

14 QUESTIONS Michael Vierheller

15 GLOBAL RISK LANDSCAPE REPORT 15

16 COMING SOON! SAVE THE DATE FOR OUR 2018 INTERNAL AUDIT WEBINAR SERIES February 27, 2018 The evolution of data governance regulations and what IA departments need to know April 24, 2018 The integrated auditor: becoming the go-to resource your company needs June 26, 2018 From scandals to serious setbacks: how a poor company culture can impact the bottom line September 25, 2018 The emergence of the Cloud and how it impacts your internal audit plan November 27, 2018 Adding value via internal audit transformation: finding the right balance 16

17 CONCLUSION THANK YOU FOR YOUR PARTICIPATION! Certificate Availability If you participated the entire time and responded to at least 75% of the polling questions, you may click the Participation tab to access the print certificate button. Exit Please exit the interface by clicking the red X in the upperright-hand corner of your screen. 17