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Unconventional Training Club

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Samuel Thomas
Samuel Thomas

Internal Auditing - Assurance And Advisory Serv...

Written through the collaboration of educators and practitioners, this textbook serves as a cornerstone for internal audit education. It covers key fundamentals of internal auditing that can be applied in an ever-changing business world, serving as a reference and training tool for internal audit practitioners.

Internal Auditing - Assurance and Advisory Serv...


Before we delve into this conundrum, let me reiterate: internal audit is predominately an assurance function. When internal audit resources are constrained, the primary focus must be on assurance work to prioritize commitments made in the audit plan and emphasize what the board and audit committee expect.

What is Happening Now? The pandemic has upped the stakes on the assurance vs. advisory question for internal audit. During the crisis, some internal audit functions have doubled down on achieving the audit plan, while others have shifted a large percentage of their efforts to advisory work that is not part of the audit plan, as the business needs and risks evolved at a rapid pace, and internal audit personnel had the requisite skill set to most help the organization in a crisis situation.

While nearly 30 percent say they have increased advisory work, I thought it would be even higher. I contend that the failure to put more emphasis on advisory work during the crisis might very well enhance the risk of loss of relevance for some of these internal audit functions in their organizations. More on that later.

Questions and Answers To further explore the issue of assurance versus advisory work, I recently put some questions on the topic to members of the internal audit community. I will share here a summation of the answers I received along with my own views.

Q: Is there a clear trend toward internal audit providing more advisory work? A: No, there is not a clear trend regarding doing more or doing less advisory work when looking at the macro level. But a definite troubling situation is that more and more internal audit functions are struggling with sustaining relevance in their organizations, exacerbated by the pandemic. Put quite simply, relevance is all about being perceived as adding value. What does seem to be a potential trend is that those internal audit functions that are doing less advisory work might be the ones struggling to maintain a reputation as a value-adding partner to the business.

Importantly, if you develop that track record of helping beyond just the traditional assurance work, you can materially enhance value creation and the perception of the function throughout the organization. It may also help internal audit secure the resources it needs for success, starting a positive feedback loop.

Q: What are the barriers to doing more advisory work? A: The biggest barrier is when the organization does not view internal audit as credible to provide advisory services. If you view advisory work as a product, you can have all the supply of the product you want but if there is no demand then there are no buyers of that product. And, in the end, internal audit advisory work is a product you are supplying to the organization.

Q: What are the areas that internal audit needs to strengthen to enable it to do more high-value advisory work? A: Sometimes we want to do what we think is best for the organization, which might not always square with what the organization needs or wants. It ends up being perceived as what we are doing to the organization, as opposed to being what we are doing for the organization.

Q: What are the areas that are ideal for internal audit to provide more advisory work? A: The areas will be different by organization, industry sector, competence of the internal audit professionals, and the challenges the organization itself is facing. (Let us ignore the potential, although it is certainly an option, of hiring 3rd party resourses in this answer.)

Maintaining Relevance It is my considered opinion that internal audit functions that are not nimble, flexible, proactive, and visible in their organizations will become less and less relevant over time. Advisory services and advisory projects are highly effective means to address the dangers of losing that relevance. Remember that the mission of internal audit is about assurance, is about advice, and is about insight. Providing all three in the right measure will ensure internal audit can and will continue to add value as organizations evolve, manage though to the other side of the pandemic, and stand ready for any other crises that undoubtedly will arise.

Yes, this was helpful & internal audit team needs to understand the advisory work that means when they are doing audit then the auditors have burdon of that they escalate the things on behalf me &other. First we have to insure that auditor we are here for helping you to find some points which you are missed or due to work pressure you forget so we both solve this & make our organization strong

Internal audit advisory: Internal audit advisory engagements represent assignments to assist organizations with internal audit services not captured by one of the other highlighted solution areas. Services in this area may include, for example, general consultative advice or training.

The Department of Public Instruction (DPI) values good governance, risk management, and internal control processes. In 2007, the North Carolina General Assembly enacted the North Carolina Internal Audit Act, enabling the Department to strengthen its governance processes with an enhanced program of internal auditing.

Mission:The University Audit and Advisory services department provides independent, objective assurance and consulting services that add value and improve ASU operations. Internal Audit helps accomplish its objectives with a systematic approach to evaluate and improve the effectiveness of business, risk management, control and governance process. The department also provides dedicated resources to promote effective and continuous improvement of internal financial controls.

AMAS assesses and monitors the university community in the discharge of its oversight responsibilities related to governance processes, internal control systems, and compliance with the laws, regulations, and university policies, including those related to ethical conduct. AMAS provides timely, independent, and objective assurance, advisory, and investigative services using a systematic approach to evaluate risk and improve effectiveness.

Internal audit staff shall not have direct operational responsibility or authority over any of the activities they review. Accordingly, they will not implement internal controls, develop procedures, install systems, prepare records, or engage in any other activity which normally could be audited. This includes assessing specific operations for which they had responsibility within the previous year; performing any operational duties for the MUS; initiating or approving transactions external to internal audit; or directing the activities of any employee not employed by internal audit, except to the extent that such employees have been appropriately assigned to auditing teams or to otherwise assist internal auditors.

Where an internal audit director has or is expected to have roles or responsibilities that fall outside of internal auditing, safeguards will be established to limit impairments to independence or objectivity. Internal auditors will:

The MUS Director of Assurance and Enterprise Risk will confirm to the BAAC, at least annually, the organizational independence of internal audit. The MUS Director of Assurance and Enterprise Risk will disclose to the BAAC any interference and related implications in determining the scope of internal auditing, performing work, or communicating results.

The scope of internal audits may include assurance or advisory services in order to add value and improve operations. Assurance services are objective examinations of evidence for the purpose of providing an independent assessment to the BOR, management, and outside parties on the adequacy and effectiveness of governance, risk management, and control processes for the MUS. The scope includes reviewing and evaluating:

To help ensure proper coverage and minimize duplication of efforts, internal auditors will coordinate activities, where possible, and consider relying upon the work of other internal and external assurance and consulting service providers as needed. Coordination should include control and monitoring functions (e.g., risk management, compliance, security, legal, ethics, environmental health and safety and external audit).

The Audit Services office is responsible for the systemwide internal audit program (audits, investigations and advisory services). It provides systemwide training for auditors and plans strategic program goals. For more information, view Internal Audit's Charter.

Audit and Advisory Services (A&AS) assists all levels of University management in the discharge of their oversight, management and operating responsibilities by providing relevant, timely, independent assurance, advisory and investigative services using a systematic, disciplined approach to evaluate risk and improve the effectiveness of control and governance processes.

The Office of Internal Audit and Advisory Services (IAAS) provides assurance and advisory services through independent and objective reviews to continuously improve systems and processes across the district that better prepare every child for success in college, career, and civic life.

To adequately address organizational risk, Chief Audit Executives and Internal Audit Directors may require resources with significant technical expertise to execute their audit plan. Our team has the tools and technical proficiency to complement your internal audit activity in conducting its annual audit plan. With our capabilities, such as continuous auditing, continuous monitoring, data mining, data analytics, regulatory expertise and diverse competencies, we have the resources to minimize your anxiety and increase the value of your internal audit function. 041b061a72


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