International Consulting Firm
International consulting firm Protiviti recently released the 15th edition of Internal Auditing Around the World, offering insights from internal auditors from around the world on digital strategies around the globe. In this latest version, the focus is on six specific areas of business: public sector, FBOs, corporations, self-employed individuals, and partnerships. Let's look at each of them.
Internal Auditing
One of the topics covered in detail in the new edition of Internal Auditing Around the World is data analytics. Organizations internal auditing around the world are realizing the benefits of data analytics. The value of data analytics can not be underestimated. It allows businesses to leverage internal expertise to produce quality reports. Additionally, data analytics can help organizations make better management decisions across the enterprise.
Strategic Business Processes
Organizations with internal auditing around the world are recognizing the importance of incorporating emerging risks into their risk management processes. In fact, emerging risks have started to come into the picture for many organizations where risk management used to be a part of the general strategy. These include emerging opportunities in health care, commercial services, and information technology. In addition, there are emerging risks in mergers and acquisitions, as well as the implementation of strategic business processes.
Consulting Firm
Another subject that was considered in the ides is the topic of consulting. Internal auditing leaders around the world were asked to share their insights on consulting as a strategy for reducing internal control risk during the year. These include areas such as the benefits of working with a consulting firm; the challenges associated with consulting; and the benefits of using a consulting firm to provide intelligence on strategic business activities.
Data Analytics Function
These are just a few of the emerging risks and issues that internal auditing teams across the globe have been dealing with this year. In fact, one of the most common strategies employed across the board was to conduct a deep dive into the data analytics function. This involves a thorough review of the existing methodology, the value stream maps (which provide insight on emerging risks), the risk profile, and the tooling to support the entire data analytics function.
CPA
As part of the strategy for internal auditing around the world, the CPA heads were asked to provide an in-depth analysis of their organization. These sessions focused on issues related to the CPA as an entity separate from the company, as well as how the company could benefit from being more independent. Internal auditors were also asked to review their CPA's portfolio, the CPA's current performance, and what the company could do to improve its risk profile. In addition, the CPA was also asked to examine the current processes for internal auditing, including the staff development strategy, the quality metrics in place, the supervisory roles and responsibilities, the management tools and processes, and the regulatory expectations.
CPA Professionals
The third risk issue that was addressed during the latest edition of internal auditing around the world was the threat posed by fraudulent CPA professionals. It was found that there are many instances where CPAs misrepresent the status of a client's account, including not having it properly authorized or filing false paperwork. In many cases, these CPAs use accounting/law firms to carry out their deception. In addition, it was also found that in a majority of cases, these CPAs are not certified in order to perform the duties required of them in their specific countries.
Internal Audit Function
Finally, it was discovered that there is a major disconnect between strategic business objectives and operational processes. When this is discovered, it can lead to a costly series of errors and delays that negatively impact businesses everywhere. Internal auditors were encouraged to thoroughly discuss issues that relate to their own organization with those from across the globe. This connection provides an invaluable opportunity to enhance internal audit functions and build a greater understanding of audit issues and best practices. It was also hoped that this edition will help bolster international relationships among audit professionals through the shared use of the latest technology.