Internal Audit. Expect More.
In an expanding risk landscape, Internal Audit has emerged as a critical lever for change. Now, more than ever, it needs to rise to the challenge and demonstrate its value.
At PwC, we are driving Internal Audit innovation merging the skills of our people with a robust, leading edge Internal Audit approach and state-of-the-art technology. The result is “The PwC Internal Audit”. Relevant, aligned and agile, it delivers insight and quality in equal measure and to the highest standard, helping you build the confidence to move faster and act decisively.
We tailor our solutions to match the individual business needs of our clients. We help you look deeper and see further considering areas like your organisation’s culture and behaviours to help you improve and embed control. In short, we make sure every hour we spend working with you is impactful, addresses the right risks and seeks to add maximum value to your organisation.
As organisations focus on improving corporate governance and ensuring compliance with new regulatory and reporting requirements. Internal audits can also help you monitor the strength of an entity’s control activities and ensure that these reflect the control environment and culture that management are seeking to establish.
Create and develop a high-performing Internal Audit function
An effective Internal Audit function plays a significant role in the development and sustainability of an internal control system.
High performing Internal Audit functions are characterised by strong, effective leadership and a talent model that supports the vision for Internal Audit and the wider strategy for the business.
When developing an Internal Audit function, strategy must drive tactics, and not the other way round. Many a times, in a rush to implement an Internal Audit function, key strategic issues can be overlooked, with the result of having a carefully planned Internal Audit function in search of a strategy.
We can assist you by establishing the route map to set up an Internal Audit function, in line with your mission statement, strategic goals and stakeholder expectations, delivering excellence to all stakeholders based on the PwC four pillars of excellence and eight core attributes.
We can also help you:
- Develop an Internal Audit plan based on a risk-based approach
- Develop, advise on, and document policies and procedures
- Develop and establish a methodology and communication strategy for meaningful and timely reporting
- Undertake an evaluation of the personnel, the types of experience required and the most effective model for team structure
- IT system audits
- Assist in setting up IT systems which will facilitate the recording and monitoring of Internal Audit recommendations
- Perform a knowledge transfer between PwC and your team through co-sourced audit reviews
PwC’s Internal Audit solutions:
Internal audit outsourcing
An outsourced team, aligned to your strategy, relevant to the issues you’re facing and armed with innovative techniques and technology, is capable of providing the insights, expertise and assurance you need to deliver against your objectives and meet the boards expectations. If you have an existing Internal Audit function it will, almost certainly have evolved over time but so too, has Internal Audit outsourcing. It’s time to reconsider whether specialist resources can give you the agility necessary to manage change and exploit the opportunities it presents.
We would act as your own Internal Audit function by providing you with a team that will fully cater for your needs. The Internal Audit function will execute a full scope, risk focused Internal Audit plan, and will report to the audit committee or the board of directors.
We will implement a system of continuous improvement by closely monitoring implementation of recommendations through follow-up activities and regular reporting to the audit committee.
Internal audit co-sourcing
Co-sourcing is an essential part of what makes many Internal Audit functions successful, providing access to a wide variety of skills, subject matter expertise and specialist insights. These are increasingly necessary to provide your stakeholders with assurance over the risks that matter yet many in-house teams find it challenging to acquire them. Co-sourcing can also support you in developing your staff’s potential providing important skills and experience few in-house functions can maintain alone.
Internal audit advisory
Every successful business is supported by an effective and valued Internal Audit function. An Advisory team provides the impartial perspective of a third party which can be invaluable in helping you establish what good Internal Audit looks like for your organisation. A broad overview of the profession and market place and deep subject matter and industry experience can help shape your vision and the steps you need to take to create or enhance your Internal Audit function.
Evaluation of your Internal audit function
Internal Audit functions must evolve to keep pace with the needs of its stakeholders, business and the general macro environment.
Internal Audit is a strategic opportunity for every organisation and function to:
- Drive innovation and productivity;
- Share insights and possible solutions; and
- Deliver a return on its investment.
PwC has the required pool of resources and knowledge to take your Internal Audit to the next level by:
- Comparing your Internal Audit function’s performance with leading practices and/or with Institute of Internal Auditors (IIA) standards
- Identifying gaps and areas for improvement to enable your Internal Audit function to add value to the organisation by recognising improvement opportunities. These may exist both in terms of the function’s performance and in terms of stakeholder’s expectations
- Providing training and closely accompanying your Internal Audit function towards its path to improvement at every level
- Assisting in the choice and implementation of tools and methods to manage reviews and other related Internal Audit activities
PwC can assist you in complying with regulations and legislation (e.g. sector-specific legislation, European directives, local legislation etc.), for example:
- Insurance Solvency II Internal Audits
- Proceeds of Crime Act 2015 Independent Internal Audits
- Banking Internal Audits
- GDPR (General Data Protection Regulation)
The work involved when conducting a compliance audit would cover the following tasks:
- Identify the regulation or legislation in question and the requirements pertaining to this area
- Adopt the adequate methodology and in-house specialists to assess the level of compliance to any relevant regulation/legislation
- Propose bespoke solutions to assist management in conforming to the relevant areas of the regulation/legislation
- Assist management to set up or refine the processes and internal controls to monitor compliance efficiently and effectively
- Provide technical expertise on upcoming regulation/legislation to prepare the appropriate measures to ensure future compliance
Assistance in Risk Management
The purpose of having a Risk Management function is to provide the second line of defence to complement the first line (management) and the third line (Internal Audit). PwC can assist you in developing a practical Risk Management Framework, and can also help you establish a formal Risk Management function.
We can also assist you in structuring a formal Risk Management function, tailor made to your needs, proportionate to the size of the entity and will optimally balance prudence with business initiatives and the sector in which you operate.
As part of our services, we will make available to you PwC tools relevant for effectively managing risks. We will tailor our resources in a manner such that you can derive most benefit without overloading your resources.
Training and knowledge sharing
In the current changing business environment, organisations will only thrive if they recruit, develop and retain their key staff.
We can assist you in the training and development of your Internal Audit or Risk Management teams, or any other personnel in charge of governance. We can help you ensure that your staff keeps up to date with current professional development and modern practices.
Our training solutions may be customised, tailor made, and exclusive to your organisation. We are able to provide these training programmes with a high level of interaction, based on practical examples which will help meet and exceed all your expectations, and add value to the attendees. We will leverage our trainers’ practical experience in varied aspects of Internal Audit and related subjects.
Additionally, we can run regular general training programmes that are designed and developed on wide-ranging topics according to developments within the business environment.