Internal Audit Start-up / Transformation
Getting started with Internal Audit Start Up and Transformation
Aligning best practice with a pragmatic approach
As accounting scandals continue to make headlines and due to the recent recovery from the financial crisis, both public and private organizations are asking, where are the internal auditors? Organizations are realizing the role of the internal audit function is not only necessary, yet critical to ensuring shareholder value, maintaining governance oversight and providing assurance to a sound control environment. However, most organizations, especially those that are smaller to midsize, do not have the budget for a best-in-class Chief Audit Executive.
Implementing a world class internal audit function, we draw upon our core expertise in Internal Audit and as well as our practice and knowledge of the Institute of Internal Auditors’ (IIA) International Professional Practices Framework (i.e. the Standards). Elevate has distilled the IIA’s 16 step process to forming an internal audit function into the following easy 8 steps:
- Understand stakeholder’s and the company’s requirements for establishing the internal audit function (define the need)
- Design a 5-point quality assurance program, including important metrics and performance indicators that define the standard of quality using the IIA’s Quality Assurance Manual (QAM) 6th edition framework
- Develop an Internal Audit Charter
- Develop an Enterprise Risk Assessment
- Develop the annual Internal Audit plan
- Build the Internal Audit budget, including a staffing plan with diversified skills, that needs to cover the requirements of the annual audit plan (i.e. IT auditing, industry-specific needs, etc…)
- Develop a plan for training, staff development and evaluations
- Advocate throughout the company the purpose of the internal audit function, the value the function provides, and the responsibilities / oversight of the function as outlined in the charter – give ‘valued added’ examples and encourage management’s feedback on how to continuously improve the audit function.
Our systematic and disciplined approach aligns stakeholder expectations with leading internal audit practices and ensures the internal audit activity is operating at an appropriate level of performance that provides the highest value to the organization. As the department is established or transformed, our professionals provide one-on-one training to transition the knowledge of how to run your best in class internal audit shop to your in-house internal audit employees.