Profiling Professional Practices Groups for Internal …...Observations based on a qualitative...
4
Observaons based on a qualitave survey of large financial instuons (assets under management greater than $50 billion) Profiling Professional Pracces Groups for Internal Audit in Large Financial Instuons ROLES & RESPONSIBILITIES Our survey results indicate that Professional Pracces Groups: Are... Set... Perform... Provide... Add Value in... • Independent • Integrated and aligned • Focused • Overarching • Systemac • Strategy • Priories • Methodology • Policies and procedures • Standards • Approach • Quality assurance • Stakeholder reporngs • Data aggregaon • Resource management • Tools • Guidance • Training • Metrics • Scheduling • Technological tools • Relaonship management • Risk assessment • Issue tracking • Implemenng best pracces The funconal groups within Professional Pracces commonly focus on the roles of: Strategy/methodology Quality assurance Training Talent management Reporng Technology support Data analysis
Transcript of Profiling Professional Practices Groups for Internal …...Observations based on a qualitative...
Observations based on a qualitativesurvey of large financial institutions (assets under management greater than $50 billion)
Profiling Professional Practices Groups for Internal Audit in Large Financial Institutions
ROLES & RESPONSIBILITIESOur survey results indicate that Professional Practices Groups:
Are... Set... Perform... Provide... Add Value in...
• Independent• Integrated and aligned• Focused• Overarching• Systematic
• Strategy• Priorities• Methodology• Policies and procedures• Standards• Approach
• Quality assurance• Stakeholder reportings• Data aggregation• Resource management
• Tools• Guidance• Training• Metrics• Scheduling• Technological tools
• Relationship management• Risk assessment• Issue tracking• Implementing best practices
The functional groups within Professional Practices commonly focus on the roles of:
Strategy/methodology Quality assurance Training
Talent management Reporting Technology support Data analysis
STRUCTURE
CHALLENGES
Resource Management/People Retention• Focus on best ways to retain top talent. Determine how to most effectively manage, track and report on Internal Auditor utilization rates. Ensure right skill sets are in place to execute on objectives.
Analytics and Methodologies• Enhance dynamic risk assessment capabilities driven by data analysis. Develop methodology that provides risk-based coverage across universe and meets underlying requirements at legal entity and country level.
Reporting• Track audit plan (actual vs. budget) and monitor against the risk assessment. Enhance board reporting on Internal Audit results, and improve overall reporting on Internal Audit objectives and business functions.
PPGscan range from
7 to 80+ staff members
Assets Under Management > $500 billion
Assets Under Management < $500 billion
Internal audit headcount= 1,000+ professionals
PPGs range from 40 to 80+ professionals
Internal audit headcount= 100-900+ professionals
PPGs range from 7 to 40 professionals
PPGs report directly to theChief Audit Executive, with inherent link
to the board of directors
Current Key Initiatives
Focusing on Future Innovations
THE ROAD AHEAD
Continuousmonitoring/
data analytics
Implementationof GRC tool
Reliance strategyon 1st and 2ndlines of defense
Assess/meetheightenedregulatorystandards
Staffing/talentmanagement
Expanding/enhancing
qualityassuranceprogram
Holistic issue identification and evaluation
Identify an issue in one area, have a methodology to inquire consistently if it could be a problem somewhere else.
Horizontal partnering with other assurance and
consulting providers
PPGs seek to cross borders of the enterprise and
work with different teams to accomplish a goal –
for example, Sales, IT Security, Risk
Management, Legal.
Global audit coverage by a unified team
PPGs establish processes to bring together global teams with embedded auditors,
including offshored or co-sourced providers, to
provide a consistent, value- added approach to audit and
risk management.
Dynamic/continuous
risk assessment
Identifying/reporting
thematic controlissues
Streamlineaudit process/
simplifyexecution
Expandingvalidation ofregulatory
findings
Enhancedmanagement
and boardreporting
Developingstandard guidance/
procedures forspecific topics
(fraud, governance)
© 2016 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and does not issue opinions on financial statements or offer attestation services.
© 2
015
Prot
ivit
i Inc
. A
n Eq
ual O
pp
ortu
nity
Em
plo
yer.
M/F
/Dis
abili
ty/V
et. P
RO-0
515
THE AMERICAS UNITED STATESAlexandriaAtlantaBaltimoreBostonCharlotteChicagoCincinnatiClevelandDallasFort LauderdaleHouston
Kansas CityLos AngelesMilwaukeeMinneapolisNew YorkOrlandoPhiladelphiaPhoenixPittsburghPortlandRichmondSacramento
Salt Lake City San FranciscoSan JoseSeattleStamfordSt. LouisTampaWashington, D.C.WinchesterWoodbridge
ARGENTINA*Buenos Aires
BRAZIL*Rio de Janeiro Sao Paulo
CANADAKitchener-Waterloo Toronto
CHILESantiago
MEXICO*Mexico City
PERU*Lima
VENEZUELA*Caracas
EUROPE MIDDLE EAST AFRICA
FRANCEParis
GERMANYFrankfurtMunich
ITALYMilanRomeTurin
NETHERLANDSAmsterdam
UNITED KINGDOMLondon
BAHRAIN*Manama
KUWAIT*Kuwait City
OMAN*Muscat
QATAR*Doha
SAUDI ARABIA*Riyadh
SOUTH AFRICA*Johannesburg
UNITED ARAB EMIRATES*Abu DhabiDubai
ASIA-PACIFIC CHINABeijingHong KongShanghaiShenzhen
JAPANOsaka Tokyo
SINGAPORESingapore
INDIA*BangaloreHyderabadKolkataMumbaiNew Delhi
AUSTRALIABrisbaneCanberraMelbourneSydney
*MEMBER FIRM
