WORKING WITH YOUR AUDIT COMMITTEE … WITH YOUR AUDIT COMMITTEE Presented by Hanif Barma Sponsored...
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Tuesday, 30 October 2012 WORKING WITH YOUR AUDIT COMMITTEE Presented by Hanif Barma Sponsored by
Transcript of WORKING WITH YOUR AUDIT COMMITTEE … WITH YOUR AUDIT COMMITTEE Presented by Hanif Barma Sponsored...
Tuesday, 30 October 2012
WORKING WITH YOUR
AUDIT COMMITTEE
Presented by Hanif Barma
Sponsored by
Today’s session
What we will cover...
• what makes a good audit committee
• what audit committee do you have?
• what audit committees look for
• developing effective relationships
• some practical steps
WORKING WITH YOUR AUDIT COMMITTEE
About Independent Audit
Independent Audit Limited specialises in working with companies to help them get value out of governance. We focus on…
helping boards do what they do better…
- developing and reviewing governance frameworks and systems
- assessing board effectiveness and improving board performance
- reviewing committee effectiveness
- helping get risk governance right
helping boards exercise effective control…
- reviewing risk management functions
- assessing internal audit effectiveness
- evaluating the effectiveness of compliance functions
- reviewing ethics and improving the business and control culture
- improving the external audit process
helping boards tell their story…
- improving narrative reporting
Our restricted range of services means we are not conflicted – our independence is key.
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What makes a good audit committee
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Characteristics
• Right role?
• Right membership?
• Right support?
• Right activity?
Characteristics Outcomes
• Right role?
• Right membership?
• Right support?
• Right activity?
• Oversight and challenge
• Effective relationships
• Value add
• The way things are done
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What makes a good audit committee
What audit committee do you have?
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What audit committees look for from internal audit
Assurance!
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What audit committees look for from internal audit
= an effective internal audit team!
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What audit committees look for from internal audit
What does “effective” mean?
• adequate to accomplish a purpose
• producing the intended or expected result
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What audit committees look for from internal audit
How do you know what the audit committee is looking for?
WORKING WITH YOUR AUDIT COMMITTEE
What audit committees look for from internal audit
How do you know what the audit committee is looking for?
©Independent Audit Limited
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What audit committees look for from internal audit
Two questions to ask...
• what should internal audit’s objectives be?
• what enables internal audit to achieve these objectives?
... both from the audit committee’s perspective
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What audit committees are you looking for
Objectives: the audit committee view
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Efficiencies
External assurance
Reduce external audit fee
Organisational culture
Risk identification
Consulting
External perspective
Sharing good practices
Source of challenge
Training ground
Facilitating risk management
Compliance checks
Control culture
Investigations
Assurance - business controls
Assurance - financial controls
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Developing effective relationships
Drivers: the audit committee view
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Documentation
Internal audit management
Other
Audit planning
Audit tools and approach way
External framework
Execution
Objectivity
Remit
Audit team skills / experience
Co-ordination with others
Leadership
Audit committee support
Communication and reporting
Management's attitude
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Primary Secondary Other
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Developing effective relationships
The bigger picture...
• a committee of one?
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Developing effective relationships
The bigger picture...
• a committee of one?
• formal meetings, private sessions and informal contact
WORKING WITH YOUR AUDIT COMMITTEE
Developing effective relationships
The bigger picture...
• a committee of one?
• formal meetings, private sessions and informal contact
• adding value beyond assurance
WORKING WITH YOUR AUDIT COMMITTEE
Developing effective relationships
The bigger picture...
• a committee of one?
• formal meetings, private sessions and informal contact
• adding value beyond assurance
• meet the team
WORKING WITH YOUR AUDIT COMMITTEE
Developing effective relationships
The bigger picture...
• a committee of one?
• formal meetings, private sessions and informal contact
• adding value beyond assurance
• meet the team
... ask the right questions
WORKING WITH YOUR AUDIT COMMITTEE
Developing effective relationships
The bigger picture...
• a committee of one?
• formal meetings, private sessions and informal contact
• adding value beyond assurance
• meet the team
... ask the right questions AND get regular feedback!
Contact
Independent Audit Limited
Holland House
4 Bury Street
London EC3A 5AW
Tel: +44 (0)20 7220 6580
Fax: +44 (0)20 7220 6581
www.independentaudit.com
Hanif Barma
Direct line: +44 (0)20 7220 6584
Mobile: +44 (0)7768 356 656
WORKING WITH YOUR AUDIT COMMITTEE
oracle.com/grc
Sponsored by
