Internal Audit - A Comprehensive Risk Management tool Understanding Document

1. Internal Audit - A Comprehensive Risk Management toolUnderstanding Document

3. Critical areas that need to be focused during such internal audits can be categorized under these three spheres

4. Critical areas that need to be focused during such internal audits can be categorized under these three spheres

5. Internal audit, thus can be positioned as a risk management tool to support top and middle management in their pursuits

6. New dimensions add to the complexity of audit and skills required in executing such assignments

7. Best practices in Internal audit need to be implemented to harness maximum from such assignments Sync with the long term business strategy and objectives Project management structure and approach Project Sponsor (Members from Top Management) Project Review layer (Partners of the Audit & Consulting firm and Top/Middle Management) Project execution layer (Consultants + Employees from Metro Water) Quality control layer (Audit & Consulting firm partner) Determine scope along with Client team considering Strategic intent and plans Client needs and priorities Findings of internal control diagnostics Diagnostic phase carrying out internal control review and As-Is mapping Continuous communication strategy Project Team � a mix of client and consultant members Cost benefit analysis Agreeing on KPI of exercise and regular monitoring of performance Use of special resources Management Graduates Engineers Information Systems specialists

8. This template throws light on the broad scope of an ideal Internal Audit assignment Internal control review for the following processes Purchase to pay cycle Order to receive cycle Review of IT Systems/ Processes Role conflicts in IT MIS Functionality used vs. EXCEL reports Review of IT Organization/ roles Customer satisfaction processes Purchase Transaction audit