I mpact of Shared S ervices on Internal Audit

1. Impact of Shared Services on Internal Audit Deryck Fuller, Mike Cappetta, Melissa Paulson October 24, 2013

2. Agenda • Our Audit Universe • Risk Assessment Process • Case Studies • Benefits of Shared Services • Keys to success

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5. Risk Assessment Process • Company Wide Risk Assessment • Business Process Risk Assessment

6. Risk Assessment Process • How often do you perform risk assessments? • How do you gain comfort with controls over financial reporting by testing a single process? • How do you determine business units to test in a shared services environment? • How do you determine sample selections in a shared services environment?

7. Key Questions for Shared Service Audits • Does my audit universe need to be redefined? How can I better define my audits in the new environment? • How should I reassess my audit strategy on an ongoing basis? • Do the controls now reside at the SSC or are they still in the business units? • How much coverage can I get as a result of auditing at the center? • Do I need to audit only at the SSC? • How does an SSC affect sample size and sample selection when one moves from a decentralized environment to a shared environment? • Are the processes and templates used across the SSC consistent? Do work-arounds proliferate? • Can I use automation in the audit process more effectively now that I am auditing in an SSC environment? Source : PWC

8. Business Process Audits (Case Studies) • Accounts Payable • Revenue Accounting • General Accounting

9. Accounts Payable • Do the controls now reside at the SSC or are they still in the business units? Do I need to audit only at the SSC? • How much coverage can I get as a result of auditing at the center? • Are the processes and templates used across the SSC consistent? Does this impact sample size?

10. Revenue Accounting • Do the controls now reside at the SSC or are they still in the business units? • How much coverage can I get as a result of auditing at the center?

11. General Accounting • How much coverage can I get as a result of auditing at the center? • Are the processes and templates used across the SSC consistent?

12. Benefit of Shared Services

13. Keys to success • Understand new technologies implemented • Add value by identifying process improvements • Early involvement • Steering committee • Milestone reviews • Reassess audit strategy on an ongoing basis • Don’t fall into the SALY trap

14. Thank you!