Shifting Paradigms in Global Internal Audit Suggested Road Map ICAI Western India Regional Council CA S Bhaskar Chief

f Internal Auditor, Tata Capital Limited

Key Components

Governance
Purpose and Mandate

Competency Development

People
Resourcing Sustaining People Excellence

Tools and Technology

Operations

Infrastructure and Operations

Methodology Knowledge Management Quality

Governance : Purpose & mandate

Internal Audit Charter approved by the audit committee Internal audit policy and processes are documented in form of audit manual Internal audit to be reporting to the audit committee of the Board Statement of charter compliance and amendments tabled annually in the audit committee

Governance : Relationship with audit committee

One-on-one meetings with the audit committee Dedicated audit committees to deliberate on the internal control issues CAE Selection and Remuneration decided by the audit committee Parent company audit committee reviews subsidiaries findings once in a year All key initiatives within internal audit to be shared with the audit committee

Resourcing : Competency Development & Optimizing Technology

All new trainees to get rotational stint in Internal audit Internal audit gets people coming from business and seeded back into the business Core internal audit team with continuity plan exists Leverage technology for managing the report communication and auto escalations Leverage technology for Data Mining Systematic Development Plan for key IA resources

Internal audit process

Internal audit policy and processes are documented in form of audit manual Adoption of the professional standards prescribed by the IIA and SIA of the ICAI IA Plan to be Risk Based and Flexible to changing risk environment Internal on-going assessments for validation of IA Processes Peer reviews & Internal assessments to validate acceptance of processes Five year road-map for compliance to professional standards Compliance statement on professional standards tabled to the audit committee

QAIP Initiatives

.Perfection is a moving target

Internal audit value

Internal audit Balanced Score Card aligned to organisation Balanced Score Card Internal audit scores factored in performance appraisals of key executives Internal audit plan achievement reviewed each month by the MD&CEO and Sr. Management Internal audit action items implementation status reviewed each month by the MD&CEO and Sr. Management Include areas such as Risk management, Governance including IT Governance, Customer Service in internal auditing

Balancing IA Focus
Quality
Best Practices

Increased Efficiency & Effectiveness Robust Foundation

Create
Processes Documents Monitoring Mechanism Review Mechanism

Optimize
People Network Skills Knowledge Information Costs

Leverage Systems CAATs Sophistication

IA Deliverables
From Oversight to Insight to Foresight
Business Insight Data Analysis Process improvements External Benchmarking KRI Monitoring BCP & DRP Value Advisor Brand Protection Customer Cost Optimisation Fraud Prevention Data Governance IT Leveraging

Maturity Maturity

Compliance & Control

Regulatory Reporting Monitoring & Evaluation Policy Checking Fraud Detection

Oversight

Insight
BUSINESS CONSULTANTS

Foresight

LEADING

Level 5

Innovates best practices Strategic Partner Leader in IA Profession Obtain IIA Award, (EA) Continuous Audit, Sustain Excellence LEVERAGING SA- IV Expanding Role Implement ACL / CAAT and Framework for IIA Certification CONFORMING Generally Conforms SA - IIV Continuous Improvement Implement QAIP, TBEM, framework for ACL / CAAT

Level 4

Emphasizes best practices

Level 3

EMERGING

Partially Conforms Action Plan

Level 2

Self Assessments & IIV Develop QAIP, Processes BEGINNING New Internal Audit Activity Departmental Setup, Arms, IA manuals processes
Level 1

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Thank you

Disclaimer: The views expressed in this presentation are personal views of the presenter and Tata Capital does not necessarily subscribe to all views. This presentation has been prepared from various published sources and the presenter does not claim an IPR on the same. The information used herein, to the best of my knowledge, is for educational purposes and not in any way for commercial use