Rashid Abu Jamous GRCP,GRCA,IPMP,IAAP’s Post

Beyond the Basics: Exploring the Risks Within the Internal Audit Function. Internal Audit is on the mission to enhance and safeguard the value of the organization by conducting risk-based and unbiased activities, while also providing value-added insights. Internal Audit function plays a crucial role in contributing to the achievement of an organization's goals and objectives, as well as in facilitating effective communication between the board of directors and the corporate management team. - However, similar to any other operational aspect, the internal audit function is also susceptible to various risks that have the potential to diminish the effectiveness and efficiency of internal audit. Consequently, it becomes imperative to implement a formal risk management framework to address these risks. - The internal audit function must prioritize risk management in order to minimize the potential impact of insufficient controls and oversight. Through the implementation of a strong risk management approach, the internal audit function guarantees independence, objectivity, and effectiveness in their auditing activities. - This enables them to comply with internal audit standards and provide support for well-informed decision-making across all levels. #Internaudit #riskmanagement

Understanding the Difference Between Internal Audit and Risk Advisory In the corporate world, both internal audit and risk advisory play crucial roles, but they serve different purposes. Here’s a simple breakdown of their key differences: Internal Audit: 1. Objective: - Focuses on evaluating and improving the effectiveness of governance, risk management, and control processes. 2. Scope: - Reviews compliance with policies and procedures. - Assesses the efficiency and effectiveness of operations. - Ensures accuracy and reliability of financial reporting. 3. Frequency: - Conducted regularly as part of the organization’s ongoing management and governance processes. 4. Reporting: - Reports findings directly to the senior management and the audit committee. Risk Advisory: 1. Objective: - Focuses on identifying, assessing, and mitigating risks to help the organization achieve its strategic objectives. 2. Scope: - Provides insights on emerging risks. - Recommends strategies for risk mitigation. - Helps in the development of risk management frameworks. 3. Frequency: - Engaged on a project basis or as needed for specific risk management initiatives. 4. Reporting: - Reports to senior management and provides actionable recommendations. Key Takeaways: - Internal Audit: Ensures that internal controls are effective and operations are running efficiently. - Risk Advisory: Helps organizations understand and manage potential risks that could impact their strategic goals. Both functions are essential for maintaining a healthy, resilient, and well-governed organization. Understanding their unique roles can help in leveraging their strengths to drive organizational success. #InternalAudit #RiskAdvisory #CorporateGovernance #RiskManagement #BusinessSuccess Follow Shivam Shukla

Last week, during an enterprise risk management meeting I saw a lightbulb turn on for a peer. I had been asked to review existing compliance programs and add to the internal audit plan. When I suggested internal audit also help management address the critical risks’ mitigation strategies without well documented, standard controls, I was asked “what would you audit?” Internal audit isn't just about ensuring compliance—it's a critical tool for assessing your organization's current state and identifying areas of improvement. Internal audit can play an advisory role by identifying design gaps, and suggesting best practices and robust internal controls in support of effective risk mitigation strategies and a more resilient organization. The internal audits of the past only focused on existing controls. Progressive IAs help improve the future. #InternalAudit #RiskManagement #Compliance #enterpriseriskmanagement

🚨Internal Audit - The Unsung Hero of Risk Management 🚨 In the world of business, risk is inevitable. It's like the weather – you can't control it, but you can prepare for it. This is where internal audit comes in. Internal audit is the unsung hero of risk management. It provides independent assurance that an organization's risk management, governance, and internal control processes are operating effectively. But it's more than just a compliance function. Internal audit helps organizations to identify and prioritize their risks, and develop strategies to manage them. Internal auditors are like detectives, uncovering the hidden risks that lurk beneath the surface of the business. They dive deep into the organization's processes and systems, looking for weaknesses and vulnerabilities that could be exploited. And when they find those risks, they don't just point them out and walk away. They work with the business to develop practical solutions that will strengthen the organization and protect it from harm. In a world that is becoming increasingly complex and interconnected, the role of internal audit is more important than ever. Businesses need to be agile and resilient in the face of constant change and uncertainty, and internal audit is a key part of building that capability. So, the next time you think about risk management, don't forget about the unsung hero in the background – internal audit. They may not always be in the spotlight, but they are always working behind the scenes to keep the organization safe. Do you agree? Let me know your thoughts in the comments! 💡 #Deloitte #InternalAudit #RiskAdvisory #EnterpriseRiskManagement

Internal Audit and Risk Management: What’s the #difference? Internal audit is an independent assessment of an organization’s #operations, focusing on compliance, #efficiency and #effectiveness. While risk management involves identifying, assessing and mitigating risks that may hinder an organization’s #objectives. The five main roles of Internal audit can be summarized as follows: 1. Assessing compliance with laws and #regulations. 2. Evaluating the effectiveness of internal #controls. 3. Identifying operational inefficiencies. 4. Providing recommendations for improvement. 5. Ensuring accurate #financial reporting. On the other hand, the five main roles of risk management focus on the following points: 1. Identifying potential risks to the organization. 2. Assessing the likelihood and impact of those risks. 3. Developing strategies to mitigate risks. 4. Monitoring risk #exposure continuously. 5. Communicating risk-related information to stakeholders. In comparison, while #Internal_audit focuses on evaluating processes and controls after implementation, #risk_management proactively identifies potential threats and mitigates them before they occur. Thus, by collaborating, Internal audit can provide #insights into risk management practices, while risk management can #inform auditors of emerging risks, ensuring a comprehensive approach to protecting the organization’s assets and objectives. #internalaudit #riskmanagement #compliance #efficiency #effectiveness #internalcontrols #operationalinefficiencies #financialreporting #riskassessment #riskmitigation #stakeholdercommunication #organizationalobjectives #auditandrisk #collaboration

Very helpful ...that you summarize and put it together.

Internal Audit Protocols Internal audit protocols refer to the systematic procedures and guidelines an organization follows to conduct internal audits effectively. Internal audits are essential for evaluating and improving the effectiveness of an organization's internal controls, risk management, and governance processes. Here are key components of internal audit process. ·        Audit Planning ·        Audit Program ·        Risk Assessment ·        Documenting Procedure ·        Testing and Sampling ·        Data Analysis ·        Communication and Reporting ·        Follow-up ·        Compliance ·        Independence and Objectivity By following robust internal audit protocols, organizations can enhance their governance, risk management, and internal control processes, leading to improved overall performance and accountability. #internalaudit #protocols

In the ever-evolving landscape of internal auditing, adopting a risk-based approach to audit planning is no longer optional but a necessity. I recently got through insightful guide titled “Risk Assessment in Audit Planning,” which elucidates this crucial aspect. The guide underscores the importance of aligning audit activities with organizational objectives and risks. It methodically breaks down the process of risk identification, evaluation, and integration into strategic audit plans. This approach not only enhances the efficiency of audit resources but also aligns the audit function closely with the strategic objectives of the organization. Key takeaways include: 1. Understanding Risk Dynamics: The guide differentiates between inherent and residual risks, emphasizing the need for auditors to adapt their strategies accordingly. 2. Audit Universe Categorization: A systematic approach to segmenting the audit universe enables a focused and thorough risk assessment. 3. Risk Scoring and Matrix: Employing a structured method to score risks based on impact and probability, culminating in a comprehensive risk matrix. As auditors, our role extends beyond compliance checks; we are strategic partners in risk management. This guide is a testament to that, offering practical steps and insights for internal auditors to upgrade their audit planning process. #AuditPlanning #RiskAssessment #InternalAuditing #StrategicAuditing

In 2025, the Institute of Internal Auditors (IIA) is rolling out significant changes to its standards and guidelines, marking a pivotal shift in how organizations approach internal audits. These updates aim to enhance transparency, accountability, and efficiency in audit processes, reflecting the evolving landscape of corporate governance and risk management. At Atlantix Partners, we recognize that these changes present both challenges and opportunities for businesses of all sizes. As a leading financial consulting firm, we are committed to helping our clients navigate these new standards with confidence and ease. Key Changes in the IIA Standards Enhanced Focus on Risk Management: The updated standards place a greater emphasis on identifying and mitigating risks, requiring organizations to adopt more robust risk management frameworks. Increased Emphasis on Data Analytics: With the growing importance of data-driven decision-making, the new guidelines highlight the need for integrating advanced data analytics into the audit process. Greater Accountability and Transparency: The changes also demand higher levels of accountability and transparency, ensuring that audit findings are communicated effectively to stakeholders. How Atlantix Partners Can Help To support our clients through this transition, Atlantix Partners and our sister companies, including JC Jones Advisory Services are offering specialized services tailored to the new IIA standards: Risk Management Consulting: Our experts will work with your team to develop and implement comprehensive risk management strategies that align with the new guidelines. Data Analytics Integration: We provide cutting-edge data analytics solutions to enhance your audit processes, making them more efficient and insightful. Training and Compliance: We offer training programs to ensure your internal audit team is fully equipped to meet the new standards, along with compliance assessments to identify and address any gaps. Why This Matters Adapting to the new IIA standards is not just about compliance; it’s about leveraging these changes to drive better business outcomes. By enhancing your risk management capabilities, integrating data analytics, and improving transparency, your organization can achieve greater operational efficiency and build stronger stakeholder trust. At Atlantix Partners, we are here to guide you through this journey. Our team of experienced professionals is dedicated to providing the expertise and support you need to capitalize on these changes and strengthen your internal audit functions. Let’s embrace the future of internal auditing together. Reach out to us today to learn more about how we can help your organization thrive under the new IIA standards. #IIAStandards #InternalAudit #RiskManagement #DataAnalytics #CorporateGovernance #BusinessTransformation #Compliance #AtlantixPartners

Risk management: The IIA's brand new audit standard - Standard 11.5 Communicating the Acceptance of Risks Let's begin the discussion - the best parts are marked with 💥. RM1 approach and support or I am wrong? Requirements The chief audit executive must communicate unacceptable levels of risk. When the chief audit executive 💥concludes💥 that management has accepted a level of risk that exceeds the organization’s risk 💥appetite💥 or risk 💥tolerance💥, the matter must be discussed with senior management. If the chief audit executive 💥determines💥 that the matter has not been resolved by senior management, the matter must be escalated to the board. It is not the responsibility of the chief audit executive to resolve the risk. Considerations for Implementation (selected) The chief audit executive gains an understanding of the organization’s risks and risk tolerance 💥through discussions💥 The chief audit executive’s 💥professional judgment💥 contributes to the determination of whether management has accepted a level of risk that exceeds the risk appetite or risk tolerance. The requirements of this standard are only implemented when the chief audit executive 💥cannot reach an agreement💥 with the management responsible for managing the risk. If the risk identified as unacceptable remains unresolved after a 💥discussion💥 with senior management, the chief audit executive escalates the concern to the board. The board is responsible for deciding how to address the concern with management. #riskmanagement #lateralthinking #decisionmaking