Robots are having a growing influence on organizational practices and this dynamic is of great interest to internal auditors and compliance professionals who examine the impact of these technologies on organizational objectives, risks and controls. But they also present a growing concern as the work performed by internal auditors may be replaced by machines.
Performance auditing is the review of a program or process, and the systems supporting it, to determine whether it is achieving the primary goals of efficiency, effectiveness, and economy in its use of available resources. These reviews are often done in government and non-profit entities, but they are equally important in the for-profit sector.
To become trusted advisors to management it would help if we spoke the same language they do. While auditors and compliance professionals often talk in terms of controls, and increasingly in terms of risk, managers and business leaders often talk in terms of costs, benefits, revenue, reputation, and market share.
As business processes become more complex, information more widely dispersed, and the risk environment more complicated, the need for internal auditors to adapt to this new environment becomes imperative. This is where rotation programs can really save the day.
Internal auditors must engage in lifelong learning. They are increasingly participating in webinars, consuming online content, and listening to podcasts. While all of these actions are conducive to learning, there is another learning opportunity that many internal auditors and compliance professionals may not be familiar with: Symposiums.
Much internal audit work has focused on financial transactions and controls. Now, many auditors are adding supply chain audits to their responsibilities. In this feature article, we've broken down some of the common risks associated with supply chains.
In internal audit, the methodologies of the past may have made the organization successful, but there is no guarantee that those same procedures will lead to success in the future. In this featured article, MISTI's Dr. Hernan Murdock highlights some examples of ways that innovation can help internal auditors, but most importantly, outlines how they can get started.
You’ve read a bazillion articles on data analytics theory (ho-hum) in auditing. And we'll be the first to say that we've written a variety on this site. But this time around, let’s focus on how to actually use those data analytics in a single audit area: risk assessments.
As business processes become more complex, information more widely dispersed, and the risk environment more complicated, the need for internal auditors to adapt to this new environment becomes imperative.
Data analytics is being leveraged more than ever by internal audit departments, but for those that haven't jumped on the bandwagon yet, this interview with CVS Health's head of data analytics explains the benefits, challenges, and misconceptions tied to the technology.
In this video interview with Internal Audit Insights, Constance Snelling, director of IT risk at Jackson National Life, offers up the essential skills that are needed to be a successful IT auditor today and how this ties into performing an integrated audit.
The balanced scorecard is a system used to make sure business operations are aligned with the organization’s mission, vision, and strategy. Since it uses several measures to determine success, it helps those involved to balance what is achieved with how it is achieved. Here's how.
As auditors, we all know that internal audit is uniquely positioned to understand where risks lay within an organization. But sometimes audit doesn’t get the opportunity to communicate the company’s risks to a broader audience. Here, we share a few ideas to help internal audit build bridges between knowing, communicating, and fixing risk in a company.
A great deal has changed over the years when it comes to risk, including the willingness and interest of CAE’s, Audit Committees and Boards to talk about risk. As part of the increase in dialogue relating to risk and risks on the horizon much has been written and discussed. Here, Experis's Alec Arons consolidates that information.
Histograms are a very powerful tool to analyze data because they show the distribution of a continuous variable in a diagram and their appearance is similar to bar graphs. In this feature article, MISTI's Dr. Hernan Murdock explains how internal auditors can leverage them.
Many organizations are still failing to effectively audit areas such as cloud security or even social media. So what areas should you be covering and why? This article answers questions tied to that topic. Here you'll find the top IT risks that consistently vex companies and protect your assets.
Persuasion is an important aspect of internal auditing that doesn’t receive enough attention or coverage. Internal audit's job is to verify that conditions and practices are as expected, and to identify opportunities for improvement within organizations. But how does persuasion play into this?
Is serving as an advisor and maintaining internal audit’s essential responsibility of objectivity, free of management influence, possible? Spoiler alert: Yes. And it’s both necessary and crucial to the internal audit profession’s standing in any organization.
Measurably reducing cyber risk in the business is an obstacle nearly all organizations face today. Needless to say, it's critical for businesses to conduct cyber risk assessments. In this contributed article by Experis' Stephen Head, he dives into the topic.
Rapidly accelerating pressures are fueling the need for the internal audit profession to transform its thinking from being financial controls-centric to shareholder value-centric. Here's how internal auditors can adapt to this "new normal."
The balanced scorecard is a system used for planning and management to make sure business operations are aligned with the organization’s mission, vision, and strategy. In this featured article, MISTI's Dr. Hernan Murdock explains how you can use it to your advantage.
As the business world changes at an accelerating rate, auditors need to keep up or risk becoming irrelevant and unable to provide the insight that will allow their organizations to succeed. That means they’ll need to continually add to their skills and knowledge.
Organizations are accumulating large amounts of data and internal auditors are rapidly increasing their mining for, and use of, these sizable data sets. This proliferation of data raises the question of how to extract meaning from it all.
If you’ve ever read or written a sentence along the lines of “Financial misstatement could lead to financial loss,” or “Non-compliance with policies” (what does that even mean anyway?), then read on for some tips to improve the risk statement.
Creativity is the use of imagination or original ideas, but it's not that important for internal auditing. Given that reporting rules and regulations are non-negotiable, there is little room for creativity and original ideas, right? Wrong! Here's what you can do to be creative while conducting audits.
Rotational auditing has been a fishing hole for years. The pros and cons have been fished around too. And then fished around some more. Auditors have a way of fishing. But paddling deeper into audit's consulting water, rotational auditing could provide a venue for teaching risk awareness.
TalaTek’s Baan Alsinawi provides an update on the state of third-party risk management as it relates to IT auditors and sheds light on the hidden traps they should look out for as it relates to trusted business partners.
After 25 years in internal audit, I have come to the conclusion that excellent audit planning is essential to ensuring an effective audit. What is a successful audit? A good measure is whether both audit management and the auditee feel good about the end results.
Escoute Consulting President Mark Thomas dives into the topic of communication challenges within the enterprise, why they exist among IT audit and cybersecurity, and the steps you can take to ensure those silos are broken down.
Fastpath’s Keith Goldschmidt discusses who the real owners of risk are within the enterprise, but also offers up insight on what IT audit can do to help streamline communication and do their part in creating a “risk culture” within the business.
Response plans vary somewhat. But here we'll focus on giving you the best insight on how the internal audit function can provide support for the business's incident response plan. Here's a look at some proven tips that can help you get started.
In this interview featuring Bob Hirth, Chairman at COSO, he sheds light on the recent updates made to the COSO ERM framework, discusses what those changes mean for internal auditors, and advises on how to best leverage the framework.
Within a communications group, chances are that someone is performing a level of auditing of weekly or monthly online analytics already. But it doesn’t hurt to talk to these people and fill in any gaps you discover. How effective is your social media presence and how do you audit it? This article should get you started on auditing social media within a larger audit.
At times, internal auditors don't explain to their clients that processes should be built to operate error-free. Even when controls detect errors, customers report gaffes, or sheer luck saves the day, these events often cause re-work. Here's what you can do to help your clients prevent mistakes.
Raytheon's Thomas Sanglier discusses the positive impact that the internal audit function can make when it comes to handling outside audits, the challenges this task can present, and how to overcome them.
For those that do integrated audits, the concept is a no-brainer. Integrated audits are an efficient, holistic approach to the business. But, if the idea of integrated auditing is untapped, then it’s a brave new world to check out. Below are some points to get the conversation started in your company.
Change is hard no matter what. We’re more apt to change when we’ve made the rules. When we’re forced to change – like being subjected to an audit – that’s a large horse pill to swallow. But there are things that auditors can do to make that horse pill go down smoother.
Just because a company has a robust risk management system in place doesn't guarantee that it will actually manage risk well. An ineffective manager will mismanage risks, no matter how strong the risk management system is.
The following seven CAE best practices may help you both better position your team to improve the performance during each of their projects and better position internal audit as a go-to resource for business leaders.
Most companies that have embarked on an enterprise risk management (ERM) initiative are still in the earliest stages or have struggled to demonstrate benefits. Here are five opportunities to enhance ERM and add value.
More than eight years removed from the start of the financial crisis that caused a full-on risk management freak-out across Corporate America, it appears risk management programs are still not up to snuff.
We recently caught up with Michael Gallagher, managing director at CBIZ Risk & Advisory Services, to talk about how risk silos can crop up at companies, the dangers they present, and how organizations can dismantle them and manage risk in a more holistic way.
As internal auditors begin the process of planning audits for 2017, they are also looking to refine that planning process, which, of course, depends a great deal on risk assessment. With an intense focus on adding value, risk assessment and audit planning are as important as ever.
It's not often that you hear about auditors and accountants in the same breath as aid workers, healthcare providers, or charity workers. Indeed, you won't find internal audit on Forbes' list of the 25 Most Meaningful Professions.
Everyone knows that culture is set at the highest levels of the organization. We may all be tired of hearing about "tone at the top," but it's never been more important. Apart from influencing the culture of the organization as a whole, executives—especially the CEO—have a big role to play in setting the risk culture.
Social media sites are becoming a bigger part of most companies' plans to connect with customers and other stakeholders. Now internal audit departments are taking a closer look at those risks and the controls companies are instituting to manage them.
No organization is 100 percent safe from hacks, cybercrime, or boneheaded employee actions that can expose the company to data breaches. Most companies have shifted from a purely prevention mindset to one of a risk-based approach to cybersecurity with a robust incident response plan.
What if access to our online bank accounts was managed the same way we manage access to information systems at work? Would we know who can get into our accounts? Who could see how much we have in what accounts? Who could take money out?
Companies are paying a huge price for worldwide corruption and bribery, even if they are adopting practices to fight against it. That's because the cost of corruption takes many forms, including loss of business to less scrupulous companies, and regulatory requirements.
Office politics and turf wars are a fact of corporate life. They are also among the most dangerous forces an organization can face, because they pit employees against each other and lead individuals to put their own or their departments' interests ahead of the business as a whole.
Internal auditors are making progress at carving out a more strategic role for themselves and are gaining influence with management and the board at their organizations, according to a new report out earlier this month.
As Donald Trump is quickly finding out, when you outsource business processes you incur risk. And these days there are few companies, if any, that don’t outsource at least some parts of their business.
A new survey from the Institute of Internal Auditors (IIA) suggests that internal audit departments are not changing fast enough to address emerging risks that lie outside the traditional purview of internal audit.
In this podcast, Joseph McCafferty, head of audit content at the MIS Training Institute, talks with Brian Barnier, a principal at ValueBridge Advisors and an OCEG fellow, about the role of controls in audit and risk management and their limitations.
How can we tell if the external auditors are doing a good job? Often we can’t. Lots of companies have had large accounting and fraud issues blow up shortly after the external auditors issued a clean audit opinion.