shifting paradigms in global internal audi suggested

8/2/2019 Shifting Paradigms in Global Internal Audi Suggested

1/12

Shifting Paradigms in Global Internal Audit

Suggested Road MapICAI Western India Regional Council

CA S Bhaskar

Chief Internal Auditor, Tata Capital Limited


2/12

Purpose andPurpose andPurpose andPurpose andMandateMandateMandateMandate

CompetencyCompetencyCompetencyCompetencyDevelopmentDevelopmentDevelopmentDevelopment

Governance

Key Components

ResourcingResourcingResourcingResourcingSustainingSustainingSustainingSustaining

PeoplePeoplePeoplePeopleExcellenceExcellenceExcellenceExcellence

MethodologyMethodologyMethodologyMethodology

Tools andTools andTools andTools and

TechnologyTechnologyTechnologyTechnology

KnowledgeKnowledgeKnowledgeKnowledgeManagementManagementManagementManagement

OperationsOperationsOperationsOperations

QualityQualityQualityQuality

Infrastructure

and Operations


3/12

Governance : Purpose & mandate

Internal Audit Charter approved by the audit committee

Internal audit policy and processes are documented in form ofaudit manual

Board

Statement of charter compliance and amendments tabledannually in the audit committee


4/12

Governance : Relationship with audit

committee

One-on-one meetings with the audit committee

Dedicated audit committees to deliberate on the internal control issues

CAE Selection and Remuneration decided by the audit committee

Parent company audit committee reviews subsidiaries findings once in a

year

All key initiatives within internal audit to be shared with the audit

committee


5/12

Resourcing : Competency Development &

Optimizing Technology

All new trainees to get rotational stint in Internal audit

Internal audit gets people coming from business and seeded back into thebusiness

Core internal audit team with continuity plan exists

Leverage technology for managing the report communication and autoescalations

Leverage technology for Data Mining

Systematic Development Plan for key IA resources


6/12

Internal audit process

Internal audit policy and processes are documented in form of auditmanual

Adoption of the professional standards prescribed by the IIA and SIA of

the ICAI

IA Plan to be Risk Based and Flexible to changing risk environment

Internal on-going assessments for validation of IA Processes

Peer reviews & Internal assessments to validate acceptance ofprocesses

Five year road-map for compliance to professional standards

Compliance statement on professional standards tabled to the auditcommittee


7/12

QAIP Initiatives

.Perfection is a moving target


8/12

Internal audit value

Internal audit Balanced Score Card aligned to organisation Balanced ScoreCard

Internal audit scores factored in performance appraisals of key executives

Internal audit plan achievement reviewed each month by the MD&CEO andSr. Management

Internal audit action items implementation status reviewed each monthby the MD&CEO and Sr. Management

Include areas such as Risk management, Governance including IT

Governance, Customer Service in internal auditing


9/12

Balancing IA Focus

Robust

Foundation

Increased Efficiency

& Effectiveness

Best Practices

Quality

Sophistication

Create Optimize Leverage

Processes

Documents

Monitoring

Mechanism

Review

Mechanism

People

Network

Skills

Knowledge

Information

Costs

Systems

CAATs


10/12

Business Insight

Data Analysis

Business Insight

Data Analysis

Maturit

Value Advisor

Brand Protection

Customer

Cost Optimisation

Fraud Prevention

Data Governance

IT Leveraging

Value Advisor

Brand Protection

Customer

Cost Optimisation

Fraud Prevention

Data Governance

IT Leveraging

IA Deliverables

From Oversight to Insight to Foresight

Compliance &Control

Regulatory Reporting

Monitoring &Evaluation

Policy Checking

Fraud Detection

Compliance &Control

Regulatory Reporting

Monitoring &Evaluation

Policy Checking

Fraud Detection

Process improvements

External Benchmarking

KRI Monitoring

BCP & DRP

Process improvements

External Benchmarking

KRI Monitoring

BCP & DRP

BUSINESS CONSULTANTS

Oversight Insight Foresight


11/12

CONFORMING

LEADINGInnovates best practices

Strategic Partner

Leader in IA Profession

Obtain IIA Award, (EA)

Continuous Audit,

Sustain Excellence

LEVERAGING

Emphasizes best practices

SA- IV

Expanding Role

Implement ACL / CAAT and

Framework for IIA Certification

Level 3

Level 4

Level 5

Year 1

BEGINNING

New Internal Audit Activity

Departmental Setup, Arms, IA manuals

processes

enera y on orms

SA - IIVContinuous Improvement

Implement QAIP, TBEM, framework for

ACL / CAAT

EMERGING

Partially Conforms

Self Assessments & IIV

Action Plan

Develop QAIP, ProcessesLevel 1

Level 2

Year 2 Year 3 Year 4 Year 5 Year 6


12/12

Thank you

Disclaimer: The views expressed in this presentation are personalviews of the presenter and Tata Capital does not necessarily subscribeto all views. This presentation has been prepared from various

published sources and the presenter does not claim an IPR on thesame. The information used herein, to the best of my knowledge, isfor educational purposes and not in any way for commercial use