Internal Audit

We have developed significant expertise in internal audit modernisations having worked with a number of banks that wanted to accelerate their progression to modern, risk-based auditing approaches. These are typically 'root and branch' transformations of internal audit functions and, consequently, require that our consultants interact at all levels of the enterprise, audit committee, executive management and internal audit management and staff.

Internal audit modernisation aims to optimise audit resource effectiveness through:

• Definition of the skills requirements relative to a modern risk-based internal audit function and subsequent staff assessment and selection
• Reorganisation of the audit function through the creation of multi-skilled audit teams to replace soiloed structures that have one-dimensional specialisations (credit audit, branch audit, IT audit etc.)
• Reconfiguration of the audit universe (i.e. identifying areas to be audited) by grouping business functions within auditable units that represent, wherever feasible, end-to-end transaction and product processing cycles
• Implementation of a risk assessment methodology that measures the relative inherent risk of each auditable unit
• The prioritisation of auditable units according to their inherent risks and categorisation into high, medium and low risk auditable units as a basis for the 3 year audit plan
• Design and implementation of risk-based auditing tools and techniques
• Development of an Audit Charter and Manual that reflect risk-based audit approaches and prevailing standards promulgated by the Institute of Internal Auditors and the requirements of the Bank for International Settlements
• Development of an in-house communications program to promote the new image of auditing
• Training and mentoring audit teams through the early stages of applying the new risk-based audit approaches