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    Overview of Operations Auditing - MARP

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    The document discusses enterprise risk management, risk-based auditing, operational auditing, and the roles and competencies of internal auditors. It defines enterprise risk management as a process designed to identify potential risks and manage risks within an organization's risk appetite. It also defines risk-based auditing as linking internal auditing to an organization's risk management framework to provide assurance that risks are being effectively managed. Finally, it outlines the general and behavioral competencies needed for internal auditors, including communication skills, problem-solving abilities, and maintaining objectivity and confidentiality.

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    Overview of Operations Auditing - MARP

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    R
    76 views7 pages
    The document discusses enterprise risk management, risk-based auditing, operational auditing, and the roles and competencies of internal auditors. It defines enterprise risk management as a process designed to identify potential risks and manage risks within an organization's risk appetite. It also defines risk-based auditing as linking internal auditing to an organization's risk management framework to provide assurance that risks are being effectively managed. Finally, it outlines the general and behavioral competencies needed for internal auditors, including communication skills, problem-solving abilities, and maintaining objectivity and confidentiality.

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    Overview of Operations Auditing_MARP

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    The document discusses enterprise risk management, risk-based auditing, operational auditing, and the roles and competencies of internal auditors. It defines enterprise risk management as a process designed to identify potential risks and manage risks within an organization's risk appetite. It also defines risk-based auditing as linking internal auditing to an organization's risk management framework to provide assurance that risks are being effectively managed. Finally, it outlines the general and behavioral competencies needed for internal auditors, including communication skills, problem-solving abilities, and maintaining objectivity and confidentiality.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    76 views7 pages

    Overview of Operations Auditing - MARP

    Uploaded by

    R
    The document discusses enterprise risk management, risk-based auditing, operational auditing, and the roles and competencies of internal auditors. It defines enterprise risk management as a process designed to identify potential risks and manage risks within an organization's risk appetite. It also defines risk-based auditing as linking internal auditing to an organization's risk management framework to provide assurance that risks are being effectively managed. Finally, it outlines the general and behavioral competencies needed for internal auditors, including communication skills, problem-solving abilities, and maintaining objectivity and confidentiality.

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    © All Rights Reserved
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    of 7

    08/31/2021

    Operations
    Auditing
    Concepts

    Enterprise Risk Management


     Enterprise Risk Management is a process, effected by an entity’s
    Board of Directors, management and other personnel, applied in
    strategy setting and across the enterprise that is designed to identify
    potential events that may affect the entity, manage risks to be within
    its risk appetite, and provide reasonable assurance regarding the
    achievement of entity objectives.

     The company’s enterprise risk management framework should


    include activities, such as, the identification, sourcing, measurement,
    evaluation, mitigation and monitoring of risk.

     Moreover, PLCs are recommended to have a separate risk


    management function headed by a Chief Risk Officer (CRO), subject
    to the Principle of Proportionality.

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    Risk-based (internal) auditing

    IIA defines risk based internal auditing (RBIA) as


    a methodology that links internal auditing to an
    organization's overall risk management
    framework. RBIA allows internal audit to provide
    assurance to the board that risk management
    processes are managing risks effectively, in
    relation to the risk appetite.

    Operational Auditing Defined


    Systematic process

    Evaluating an organization’s operations

    Effectiveness, efficiency, and economy of


    operations

    Reporting to appropriate persons

    Recommendations for improvement

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    Phases of an Operational Audit

    Select Auditee

    Plan Audit

    Perform Audit

    Report Findings

    Perform Followup

    Financial Statements Audit vs.


    Operational Audits

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    Top General Competencies of Internal Auditor


    1. Communication skills, such as oral, written, report writing, and
    presentation skills
    2. Problem identification and solution skills, such as conceptual and
    analytical thinking
    3. Ability to promote the value of internal audit
    4. Knowledge of industry, regulatory, and standards changes
    5. Organization skills
    6. Conflict resolution/negotiation skills
    7. Staff training and development
    8. Accounting frameworks, tools, and techniques
    9. Change management skills
    10. IT/CT* framework, tools, and techniques
    11. Cultural fluency and foreign language skills

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    Behavioral skills an Internal Auditor


    must possess
    ◾ Confidentiality ◾ Relationship building
    ◾ Objectivity ◾ Work independently
    ◾ Communication ◾ Team building
    ◾ Judgment ◾ Leadership
    ◾ Work well with all ◾ Influence
    management levels ◾ Facilitation
    ◾ Possess governance ◾ Staff management
    and ethics sensitivity
    ◾ Change catalyst skills
    ◾ Be team players

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    Thank you!

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