Essay: Audit Process

Pages: 11 (3446 words)  ·  Style: Chicago  ·  Bibliography Sources: 6  ·  Level: Master's  ·  Topic: Business - Management  ·  Buy This Paper

SAMPLE EXCERPT:

[. . .] The members of the internal audit team are observed to have strong technical, strategic and administrative skills.

The function consists of appropriate and well defined job descriptions. This, as a result, facilitate the employees in performing their tasks appropriately.

Current Challenges

The geographic spread of the functions can prove out be a challenge for the department.

No formal skills analysis have been performed on the team. The team, as a result, cannot identify the training and development that are to be addressed for effective performance.

There are a limited number of auditors with in the IAD who have IT forensic skills including IT governance and application controls.

2.3. Competency Development

Leading Practices

The learning maps of the personnel are monitored appropriately and are updated as per the needs of the individual, function and organization.

Defined models exist for the competency development of the personnel. These are reviewed and confirmed by concerned authorities.

Appropriate software and training programs exist so that the personnel can be developed as per their learning maps.

Current Strengths

The auditors feel that they are provided with appropriate training, which, in return, help them to attain specialized skills.

Most of the staff of the department holds professional education and those who do not are encouraged to get professional education.

Current Challenges

The current competency model of the department covers the managerial level only and does not propose any future learning path for the department.

The department pays inappropriate attention on the development of soft skills.

Any formal learning map and training program has not been developed for the department.

2.4. Sustaining People Excellence

Leading Practices

The department has developed a reward program that operates throughout the year.

Department actively tracks and integrates career mapping and succession planning.

Formal performance appraisals are conducted by the department at semi-annual basis.

The employees are provided with robust mentoring and career counselling.

Effective professional opportunities, which are related to the career maps and competencies of the individual employees, are provided to the personnel.

Current Strengths

Individual goal setting and career mapping processes take place in a strutted manner at annual basis.

The department indulges in active succession planning process and the employees are rewarded effectively.

The staff turnover is reasonable and the staff regards the department as an appropriate place to enhance their skills and gain knowledge about JTI.

Current Challenges

No formal rotation program exists in the department.

The actual structure of the internal audit department does not provide sufficient development opportunities as the current opportunities can be enhanced significantly.

2.5. Methodology

Leading Practice

Documented and structured methodologies are developed and currently operate within the department to supervise all the advisory and support services of the department. These services include, reporting, risk assessment and risk management etc.

The internal audit, audit planning and risk assessment processes are appropriately aligned with each other. In addition to that, the audit plans are monitored routinely and the key risks, in relation to the entire organization, are updated appropriately.

Current Strengths

The reporting format provides the management with concise and factual information and hence this format is appreciated by the management.

In addition to that, the IT staff of the internal audit deploys a recognized framework, which is referred to as Cobit - Control Objectives for Related Technology, for the governance of operations.

Current Challenges

Any formal top down risk assessment plan, which takes the objectives of the organization, business risks and value chain into account, is not developed by IAD.

Even though a rolling audit plan exists in the department but it does not address the adhoc assignments in an appropriate manner.

The rating system and articulation of the department can be enhanced effectively.

In addition to that, apart from the quantitative aspects, the department can also include certain qualitative aspects in the reports.

2.6. Tools and Technology

Leading Practice

The function deploys most effective and advanced tools and technologies. This, as a result, enables the function to perform its task in an efficient manner. In addition to that, various responsibilities can be integrated appropriately. Furthermore, the deployment of effective technology enhances and facilitates the exchange of knowledge throughout the department.

Current Strengths

The data and analysis software, which is referred to as IDEA, has been currently installed in the department for the purpose of data mining, data collection and data analysis. In addition to that, the staff of the department is also provided with effective training so that they may deploy this tool effectively.

The team is currently satisfied with the reporting and working form. In addition, the use of intranet also facilitates the functioning of the department.

The audit software, which is referred to as TeamMate and has been implemented globally, is deployed by the organization for the purpose of audit delivery.

Current Challenges

The current functionalities of TeamMate are used to their fullest.

In addition to that data analytics function of the department is not performed appropriately. The past and present data is not used effectively for the assessment of risks.

2.7. Knowledge Management

Leading Practice

The currently culture of the department strongly encourages the attainment and sharing of relevant knowledge.

The process of knowledge sharing is enhanced through the deployment of technological tools. In addition to that, the department provides the personnel with a number of internal and external sources of knowledge.

The department has developed user friendly interfaces that filter the knowledge and provide the users with relevant knowledge only.

Current Strengths

The department has an access to external sources of information.

The department deploys a common platform, which is referred to as SharePoint, to share knowledge.

During the preparation of an assignment or a report, the department has a complete access to knowledge.

Current Challenges

The team members of the department have attended a very knowledge management and training sessions.

The department does not share knowledge in relation to the current trends of the industry in a proactive manner.

2.8. Operations

Leading Practice

Formal and structured resourcing and audit planning are conducted in a manner that is in alignment with the overall plans of the organization.

The performance metrics are aligned with the mandates that are established by the members of the board.

The performance of the employees is assessed and monitored in careful manner on annual basis.

Current Strengths

The budget of the department represents around 0.09% of the net sales of the organization.

The members of the team are satisfied with the manner in which the department conducts its operations and the position that it holds in the organization.

Current Challenges

The methods that are deployed to track the performance of the department can be enhanced.

The travel and entertainment expenses cover around one fourth of the total annual budget of the department.

2.9. Quality

Leading Practice

The quality metrics are designed in a manner that is in alignment with the mandates, which have been designed by the members of the board and management.

Performance of the employees is monitored in an appropriate manner and corrective actions are taken immediately, if and when required.

The department has developed a formal quality assurance program which is implemented on all the key activities of the department.

The department indulges in continuous improvement programs so that the performance and activities of the department can be enhanced effectively.

The department conducts an independent quality review of the operations so as to ensure that they comply with the IIA standards.

Current Strengths

The manual defines the quality assurance assessments at the assignment level.

The audit report is validated and reviewed by the management before the final product is published and used.

Current Challenges

The department does not implement the quality control and assurance procedures in a systematic manner.

The internal audit department is required to perform its activities in a proactive manner. This is because the department plays an important role in the management and assessments of the key risks that are confronted by any organization. In order to enhance the effectiveness and operation capability of the IAD department of JTI, this section makes the following recommendations. All these recommendations are based on the above mentioned discussion and aim at strengthening the current weaknesses of the IAD.

3.1. Governance

Under this head, the following changes shall be made to enhance the operations of IAD:

Enhancement of the Role of IAD and its Relations with the Key Stakeholders: It has been suggested by Rodney Turner (2009), a key factor for the success of a project is the attainment of agreement of stakeholders on the success criteria. The expectations that the key stakeholders have, in relation to IAD, shall be represented in an evident and appropriate manner. In addition to that, the department shall also update its mandate and shall try to align it with the expectations of the key stakeholders. In addition to that, the department shall play a more proactive role as an advisory and direct channels shall be established between the global CFO and the IAD for… [END OF PREVIEW]

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https://www.essaytown.com/subjects/paper/audit-process/7868761.