KnowledgeLeader Blog

Second Line of Defense: What Needs to Be Present

Posted by Protiviti KnowledgeLeader on Thu, May 02, 2019 @ 04:19 PM

What is the Second Line of Defense?

Essential to effective risk management, the lines-of-defense model is implicit in COSO’s internal control framework through the control environment, control, activities, monitoring and other components of an internal control system. It provides assurance to the board of directors, as the elected representatives of the shareholders to oversee the organization’s operations on their behalf, that risks are reduced to a manageable level as dictated by the organization’s appetite for risk. Much more than “segregating incompatible duties” and “ensuring checks and balances,” the lines-of defense model emphasizes a fundamental concept of risk management: From the boardroom to the customer-facing processes, managing risk is everyone’s responsibility.

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Topics: enterprise risk management, corporate governance, internal audit, COSO, audit committee & board, strategic risk, KL Tools

Key Performance Measures for Improving the Internal Audit Process

Posted by Protiviti KnowledgeLeader on Thu, Jan 03, 2019 @ 10:21 AM

An effective business process is built on a set of well-defined and clearly stated business objectives. These key objectives articulate the ideal performance results that the company expects from that process. To monitor a business process so that it stays focused on reaching the key objectives, the company chooses appropriate performance measures. Careful selection of the performance measures takes a company a long way toward improving a business process. Thus, to build and continually improve an effective business process, a company establishes:

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Topics: internal audit, risk assessment, quality assessment review, performance management/measurement, KL Tools

What is Internal Auditing?

Posted by Protiviti KnowledgeLeader on Thu, Oct 25, 2018 @ 12:27 PM

What is internal auditing?

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Topics: internal audit, IT audit, audit committee & board, audit planning, KL Publications, audit testing

The Art of Internal Audit Reporting: Direct Impact and Clarity

Posted by Protiviti KnowledgeLeader on Thu, Oct 04, 2018 @ 04:37 PM

Internal audit (IA) reporting may be the biggest challenge in the audit process next to scheduling the audit itself and implementing recommendations in today’s complex and competitive corporate environment. An audit report presents results of an examination or review within the organization and is considered by many to be the core deliverable of audit services. Therefore, the importance of good reporting cannot generally be exaggerated.

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Topics: training & development, internal audit, audit reporting, KL Tools, internal audit administration

Self Assessment: Launching Here and Soaring Beyond

Posted by Protiviti KnowledgeLeader on Thu, Sep 27, 2018 @ 02:33 PM
First Step: Use Self-Assessment Within the Internal Audit Department

The first and simplest way to use the self-assessment process is to use it in determining your own internal audit function strategy and priorities. This is an excellent starting point, for numerous reasons:

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Topics: internal audit, risks and controls, self assessment

What is Sourcing Risk?

Posted by Protiviti KnowledgeLeader on Thu, Jul 26, 2018 @ 09:33 AM

Outsourcing has become a keystone of major business operations to the point that it’s almost a given that large companies will move certain expensive business processes and labor-intensive activities to a third-party. Is this always the best option?

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Topics: internal audit, supply chain, purchasing & accounts payable, vendor management, performance management/measurement, outsourcing/co-sourcing/shared services, sas 70

Do You Have Adequate Documentation for Your Business Processes?

Posted by Protiviti KnowledgeLeader on Fri, Oct 27, 2017 @ 07:07 AM

Good process documentation doesn’t just describe how things work—it tells a story of an organization’s modus operandi (MO). As with any storytelling, it’s possible you might sit down to document your process and encounter writer’s block. There it is, the dreaded blank page taunting you as you struggle to decide how to get started.

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Topics: performance management, internal audit, performance measurement, process-level control, document retention

A Guide to Self-Assessment Value Proposition

Posted by Protiviti KnowledgeLeader on Mon, Oct 02, 2017 @ 06:40 AM

Self-assessment is a process through which an organization utilizes its internal knowledge to identify and assess uncertainties and the extent to which current practices are sufficient and appropriate to manage and achieve strategic objectives. Self-assessment drives the "tone at the top" down to process owners.

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Topics: internal audit, internal controls, entity-level control, self assessment

What Is Internal Audit’s Role in Cyber Security?

Posted by Katrina Opgenorth on Fri, Jun 09, 2017 @ 08:57 AM

Corporations today are thinking about how to protect assets. A few of the white collar crime problems include hacking/intrusions (cyber vulnerability), insider/outsider trading (convergence of cyber and financial crimes), the Foreign Corrupt Practices Act (FCPA), spear fishing (email compromise) and economic espionage. They must consider the possibility of internal corruption or external corruption, and environmental factors such as culture and competition contributing to these crimes. As protection, organizations can use cyber security, pen testing and data loss prevention tactics.

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Topics: enterprise risk management, internal audit, internal controls, risk assessment, cybersecurity, IT controls

Data Analytics and the Audit Process

Posted by Lark Scheierman on Mon, Apr 10, 2017 @ 09:08 AM

Internal audit has started the journey toward enabling analytics in audit processes, but there’s a long road ahead. The key findings from Protiviti’s 2017 Internal Audit Capabilities and Needs Survey explain why. In a digital world, now is the time for internal audit functions to embrace analytics. This is the most significant takeaway from this 2017 survey, the results of which show that chief audit executives (CAEs) and internal audit professionals increasingly are leveraging analytics in the audit process, as well as for a host of continuous auditing and monitoring activities.

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Topics: internal audit, continuous auditing, data analytics

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