|
Establishing an Internal Audit Function
The Issues
With the growing focus on corporate governance issues, organizations are increasingly exploring the potential benefits to be gained from establishing an Internal Audit function. Developing an effective Internal Audit capability can be demanding on management’s time, and requires the careful consideration of a wide range of issues to ensure the function works to its maximum potential. The increasing expectations from Internal Audit as well as the changing focus of Internal Audit from transaction-based to risk based is setting the pitch for changes in the process of setting up an internal audit function.
A start-up analysis to assess the costs and benefits to be derived by an organization from Internal Audit should address several factors, including the structure of the organization, the degree of autonomy of each operating unit, and your organization's overall culture and management philosophy. An assessment also needs to be made of the control environment within your organization, and the level of awareness of control issues among both management and employees.
How KPMG can help
We will help plan for and resolve all these issues, drawing on our in-depth knowledge of ‘best practice’ in structuring and organizing effective Internal Audit functions.
We can source KPMG Internal Audit professionals who have worked with a wide variety of organizations throughout the private and public sectors by helping them assess the costs and benefits of Internal Audit functions. We have also assisted in the development of Internal Audit functions, thereby leaving management free to concentrate on the key issues facing their businesses.
Key elements of our approach:
- Determining the Audit Committee's and management's requirements and expectations
- Establishing the function's terms of reference or mission statement
- Agreeing reporting lines
- Deciding how the function should relate to other parts of the business
- Determining the scope of the Internal Audit work
- Developing a risk profile for the organization
- Developing strategic and annual Internal Audit plans
- Defining working practices, including the Internal Audit methodology, risk analysis model, and audit software
- Determining the core skills required in recruiting the right staff for the function
- Identifying sources of ongoing support and training for Internal Audit staff
- Establishing accountability and quality control standards
KPMG's Internal Audit Services include:
 Back
For further details contact us
|
