Internal Audit Services
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Global good practice in relation to corporate governance frequently states that the Board of Directors is responsible for ensuring that the Management maintains a sound system of internal controls to safeguard the shareholders’ investments and the company’s assets. The Board should also have an overview of the adequacy of internal controls (including financial, operational and compliance controls) and of the risk management systems in the company.
In this respect, the Board should establish an internal audit function that is independent of the activities it audits. The internal auditor should also meet or exceed the standards set by nationally or internationally recognised professional bodies such as the Standards for the Professional Practice of Internal Auditing (“IA Standards”) set by The Institute of Internal Auditors (“IIA”). The IIA also require that a periodic independent review be performed on an internal audit function to assess its compliance with the IA Standards.
- You do not have an internal audit or compliance function
- You do not have enough resources to perform internal audits and you have found it difficult to recruit and retain good internal audit professionals to your company
- You perceive your internal audit function as ineffective and not adding sufficient value to your top management and organisation
- You are worried about compliance risk within your organisation
- Your Board of Directors does not have sufficient assurance on the state of the internal controls
- You would like to know the areas for improvement by benchmarking your internal audit function to Institute of Internal Auditors standards, or
- You would like to increase the capability and maturity of your internal audit function at a faster but sustainable rate.
- You are worried about the efficiency and effectiveness of your business processes.
How we can help
- By forming an Internal Audit Co-sourcing Partnership or Internal Audit Outsourcing, we can support an existing internal audit team through co-sourcing or can provide you with a fully outsourced internal audit function if you do not have an in-house team in place. You will have immediate access to experienced internal audit consultants, good internal audit practices, technical and industry specialists. We will also work with you to focus internal audit on areas of higher risk through flexible resourcing and best utilisation of your limited budget.
- By providing Performance/Quality Assurance Reviews and Training to your internal audit function, we will assist in providing clarity and in validating stakeholders' expectations of your internal audit function by assessing the existing internal audit structure, methodologies, resources and capabilities in light of value expectations. We will identify opportunities to improve your internal audit capabilities and processes and support you by developing a plan to increase the maturity and capability that is aligned to you corporate goals.
- By assisting you to Establish an Internal Audit Function, we will start by understanding the internal audit function. Options can include the following: stakeholders' expectations; developing an internal audit charter; developing an internal audit strategy (usually for a 3 year period); performing risk assessment to enable focus on higher risk areas; developing an estimated manpower and skills plan according to an agreed maturity matrix; and developing job descriptions for key internal audit positions. We will work closely with you to design the most appropriate approach to establish your internal audit function.
- By providing Controls Due Diligence Reviews, which can be tailored to suit your needs. However, the standard scope would include: a high level review of key control areas; a summary report to the parent company management including key control weaknesses and prioritised actions for improvement; and comment on the experience of management within the entity and their ability to implement any proposed changes.
In-house, Co-Sourced or Out-Sourced Internal Audit?
To add value to an organisation, Internal Audit must increasingly deploy a wide range of skills and capabilities. Internal auditors need to be experts in risk management, process improvement and a wide range of specialist areas across the whole business if they are to fulfil their mandate. At this point in time, such skills and capabilities are not easy to find in Vietnam especially at a cost that is deemed reasonable to many Vietnamese organisations.
The choice of whether to have an in-house, co-sourced or completely out-sourced internal audit function depends on various factors. We have set out the common drivers of such decisions to assist you in making your decision.
- Greater chance of achieving strategic, financial and operational objectives
- Increased independent assurance to the board on the adequacy of internal controls by focusing on higher risk areas, key controls and also the risk management processes to identify and mitigate key business risks
- Increased efficiency in business processes while also improving the effectiveness of internal controls
- Better corporate governance and an increase in the awareness and compliance to policies and procedures
- Use of internal audit tools such as computer assisted auditing tools to increase the coverage, effectiveness and efficiency of tests on controls and transactions
- Your internal audit function will have the right strategy, structure, coverage, quality, infrastructure and deliverables aligned to the corporate objectives and expectations of the key stakeholders
- Your internal audit function will operate in a cost effective manner to maximise benefits against costs