SEARCH

Audit is not the function that fulfills obligations. Here's a breakdown of the different functions: Audit: An audit is an independent review process that An audit can identify areas where controls are weak or where procedures aren't being followed. Auditing of voluntary obligations can and is often misunderstood. In many cases internal audit is only concerned with external or legal obligations.

Audits go beyond the "what" and provide remedies for the "how" Auditing should verify the integrity of Audit findings are used to set compliance obligations Audit findings produce a list of corrective actions conducts the audit. Audit findings are used as the only source for compliance improvement Many companies only use audit findings Companies are now conducting pre-audits to get ready for internal audits to get ready for external audits

When it comes to compliance, we often hear about audits and assessments. Let's dive into the key differences between audits and assessments, and why it matters for your organization The Origins and Purpose of Audits Audits have their roots in finance and accounting practices. The core purpose of an audit remains consistent across these fields: to verify conformance to standard and approach: Audits are retrospective (what did happen?)

The evaluation and auditing of system effectiveness is not part of the auditing or the compliance function , so which function is it a part of and what should it be auditing? Auditing as Quality Control / Assurance Auditing has become the core function across almost all compliance What Then Should Be Audited? This is why compliance now should audit outcomes over outputs.

in reference to IIA’s 3 line model “should risk management be connected more closely with internal audit Internal audit does have accountability with respect to the delivery of audit services. Audit effectiveness depends on many thing but mostly on its independence and objectivity. When businesses lean to much on audit’s advise, managerial accountability is diminished along with audit Conclusion: Should risk management be connected more closely with internal audit?

When it comes to audits there is a popular meme that goes something like this: Before the audit: documents out of conformance During the audit: documents in conformance After the audit: documents out of conformance Companies hoping to act more like adults will conduct pre-audits to get ready for an internal audit to get ready for an external audit. It's not about audit readiness The goal is not to always be ready for an audit as many suggest.

This is not unlike how audit-correction cycles work. However, what many don't consider is: The more often things change, the higher the frequency of audits Let’s assume you audit conformance to prescribed controls once every year. That’s why audits are often too slow and too late to protect value creation. Never mind that audits seldom evaluate effectiveness against targeted compliance goals and outcomes.

In my previous blog, I discussed four misuses of audits that result from a reactive approach. benefits from being directly embedded into each process rather than only by means of inspections or audits Embedding will enable the level compliance to be known at all times rather than after an audit. Many are already spending excessive effort conducting pre-audits, internal audits, and third-party audits Why wait for an audit when you can experience the benefits of being in compliance right now?

They use multiple frameworks, standards, and certification regimes - each with their own audit processes But it requires taking a stand that may make life harder for auditors. Auditors often want to see compliance done their way, according to their specific methods. decide - are they willing to optimize for compliance effectiveness, even if it means a more challenging audit There are better approaches that integrate multiple compliance needs, but they require rethinking audit

The role of internal audit in assessing and providing assurance on culture is discussed, with the report presenting insights from a survey of internal audit leaders. A significant number of senior internal audit executives have not been asked by the board or audit committee However, the report does not raise (but it should) the question of whether the audit function should the very thing that the report asks internal audit to change.

Evidence of these processes is demonstrated by audits conducted by internal functions which may include The primary mechanism by which this is done is through the audit function. In fact, for many companies, the words compliance audit, and even GRC are used interchangeably. Unfortunately, when compliance only has an audit “hammer” everything looks like a nail which increases the tendency to "double down" on audits.

Organizations declare their compliance by attestation, verified by internal audits, and confirmed by external audits. operational approach is hard to find when you believe you are already “In Compliance”, confirmed by audits