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| Services » Corporate Governance and Risk Consulting Services |
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| Risk Based Internal Audits |
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Although conceptually Risk Based Internal Audit (RBIA) is in practice for a very long time, quite often we find internal audit teams / external consultants drawing out an audit plan / audit charter without undertaking risk assessment in a meaningful way.
Often internal audit is considered to be under the purview of finance / audit function and the scope is decided by the CFO in a small and medium size company and by CFO / CEO / Head Audit in consultation with Audit committee and external auditors in large companies. Not all the functional heads are involved during the scoping exercise.
In a large number of organizations both large, medium and small, linkage between Risk Management activities and internal audit scope is not clearly established. Quite often Risk Management and internal audit functions are headed by different individuals who again work in silo's
Organizations are finding it difficult to understand the value / ROI from investing in internal audits mainly due to
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| a. | Lack of tangible benefits directly attributable to internal audit
| | b. | Disconnect in understanding internal audits role by different functional heads / top management and the board |
| c. | Internal audit's focus on policy / procedural compliance instead of business issues |
| d. | Audit observations being transactional in nature |
| e. | Difficulties in implementation of recommendations of internal Audit |
| f. | Absence of integration between IT and process audits |
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We at BlueRidge are well versed to 'truly' undertake Risk Based Internal Audits. We devote a good amount of time in understanding your business and the associated risks, discuss the pain areas with all functional heads, the audit committee, executive management and draw up a comprehensive audit scope and plan
We believe that organizations should be able to see tangible benefits from internal audit
To understand how BlueRidge can assist your enterprise please contact :
Giridhar - Giridhar@blueridge.co.in
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