IIA / ISACA / ACFE March Seminar Seven Habits of Highly Orange - - PowerPoint PPT Presentation

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Nov 29, 2022 208 likes •334 views

IIA / ISACA / ACFE March Seminar Seven Habits of Highly Orange County Chapters Effective Internal Audit Functions Introduction Marina Daniel Garry Goodall EY Senior Manager EY Principal Los Angeles, CA San Francisco, CA

SLIDE 1

IIA / ISACA / ACFE March Seminar

Orange County Chapters

Seven Habits of Highly Effective Internal Audit Functions

SLIDE 2

Introduction

IIA / IIA / ISACA / ISACA / ACFE Marc ACFE March Semina Seminar

Garry Goodall

EY Principal San Francisco, CA garry.goodall@ey.com Office: 1 415 894 8454

Marina Daniel

EY Senior Manager Los Angeles, CA marina.daniel@ey.com Office: 1 213 977 3186

SLIDE 3

Evolving regulatory agenda

Higher governance and control expectations in prudential

agenda, e.g., CCAR, RRP, BCBS 239/data.

Broadening conduct agenda, incl. strategy, product

design, and suitability

Continually rising governance and culture expectations

Stronger first line accountability
Clearer roles/responsibilities across the three lines of

defense

Enhanced board oversight

Demand on people

Ever increasing expectation of specialist knowledge

(product, technology, regulation, risk) – centers of excellence

Competition for talent (inside organization, cross industry,

service providers)

Stakeholder expectations

Improve ROI on investments in controls across all LODs
Better leverage analytics and automation
Contribute to talent development beyond IA
Provide a prospective view on emerging governance, risk

and control matters.

Future of Internal Audit

Changes to business model

Regulatory requirements have driven down ROEs,

necessitating business-model changes

Digital and FinTech are revolutionizing financial

services

Uncertainty

Loss events continue to happen – process & controls

have not really improved

Demand for faster change, e.g. Agile
Acquisitions, new entrants, obsolescence

Future of control

Common taxonomy
Centralized testing functions and control

rationalization

Increased automation
Reliable metrics & KPIs

Future of work

Gen X, millennial expectations
Robotics, machine learning and process automation
Significant improvement in data quality and analysis

Internal audit is facing pressures to evolve

Major challenges facing firms will have a significant impact on internal audit

IIA / IIA / ISACA / ISACA / ACFE Marc ACFE March Semina Seminar IIA / IIA / ISACA / ISACA / ACFE Marc ACFE March Semina Seminar

SLIDE 4

Audit’s purpose, strategy, and objectives are universally understood, agreed and align with organizational strategies and business

bjectives

Habit 1

IIA / IIA / ISACA / ISACA / ACFE Marc ACFE March Semina Seminar

SLIDE 5

Dynamic talent management and deployment strategies that align audit needs with auditor skills

Habit 2

IIA / IIA / ISACA / ISACA / ACFE Marc ACFE March Semina Seminar

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A robust risk assessment process that identifies, prioritizes, responds and adjusts to the most prevalent risks faced by your

rganization

Habit 3

IIA / IIA / ISACA / ISACA / ACFE Marc ACFE March Semina Seminar

SLIDE 7

Audit response mechanisms that align the level of effort to the anticipated level of assurance to be provided

Habit 4

IIA / IIA / ISACA / ISACA / ACFE Marc ACFE March Semina Seminar

SLIDE 8

Defined continuous monitoring routines that incorporate metrics, discussions and testing to assess impact and drive change

Habit 5

IIA / IIA / ISACA / ISACA / ACFE Marc ACFE March Semina Seminar

SLIDE 9

Synthesized reporting that provides insight and perspective on governance, risk and control across the entity, lines of business and geographies

Habit 6

IIA / IIA / ISACA / ISACA / ACFE Marc ACFE March Semina Seminar

SLIDE 10

Quality review programs that effectively challenge all audit processes and outcomes

Habit 7

IIA / IIA / ISACA / ISACA / ACFE Marc ACFE March Semina Seminar

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Internal Audit Transformation

Revolutionary opportunity to align the organization and apply innovative technologies to the audit process to dramatically increase reliability and efficiency of controls Alignment on taxonomy, risk and control definitions, testing standards & issues Greater flexibility, dynamic audit responses developed, broad and targeted opinions

Evolving from a point control testing and independent assurance function to providing broad opinions, ongoing assurance, targeted responses and

ultimately assisting the Board and Management to protect the assets, reputation and sustainability of the organization

Boards and regulators place greater reliance on Internal Audit (regulator’s portal?) to identify and escalate issues and challenge the business to

prevent and resolve problems

Significant drive to improve effectiveness of 1st and 2nd lines of defense, specifically the first line’s primary ownership for controlling various risks and

2nd line’s effective oversight, providing significant synergistic opportunities

Evolution Future

Rise of the technology and data enabled internal audit function

Internal audit remains current with business and technological change and is agile to respond

Agile audit approach Increase in reliance Data and metrics Audit deliverables

The future of internal audit

IIA / IIA / ISACA / ISACA / ACFE Marc ACFE March Semina Seminar