Setting up the Internal Audit Function EN

Description

INTERNAL AUDIT SERVICES Setting up an Internal Audit Function ADVISORY With the growing focus on corporate governance issues, organizations are increasingly exploring the potential benefits to be gained from establishing an effective internal audit function. An internal audit function would undertake an important role in risk assessment, by initiating quality improvement activities, performing performance testing, identifying possible operational improvements and opportunities for obtaining new profits. Moreover, the companies whose financial statements are audited are required to set up an internal audit function in order to comply with Government Ordinance 75/1999, as amended by Government Ordinance 37/2004. How KPMG can help The issues Our services Establishing an internal audit function While the impact of corporate that will provide an enduring benefit governance is one reason to establish • Establishment of internal audit to your organization is no easy task. an internal audit function, there are function The process will be demanding on more basic reasons why internal audit • Internal audit outsourcing senior management time and requires adds value to your organization, careful consideration of a wide range including: • Internal audit co-sourcing of • Internal audit's ability to provide • Secondment of internal audit issues to ensure that the function staff management with objective works to the organization's ...

Informations

• Publié par: Difef
• Nombre de lectures: 75
• Langue: English

Extrait

INTERNAL AUDIT SERVICES

Setting up an Internal Audit

Function

ADVISORY

With the growing focus on corporate governance issues, organizations are increasingly exploring the potential benefits

to be gained from establishing an effective internal audit function. An internal audit function would undertake an

important role in risk assessment, by initiating quality improvement activities, performing performance testing,

identifying possible operational improvements and opportunities for obtaining new profits. Moreover, the companies

whose financial statements are audited are required to set up an internal audit function in order to comply with

Government Ordinance 75/1999, as amended by Government Ordinance 37/2004.

The issues

While the impact of corporate

governance is one reason to establish

an internal audit function, there are

more basic reasons why internal audit

adds value to your organization,

including:

•

Internal audit's ability to provide

management with objective

analyses, appraisals,

recommendations, counsel and

information about the quality of

internal controls;

•

Internal audit's understanding of

the organization's key business

processes provides the

opportunity for continuous

improvement; and

•

Internal audit helps the board of

directors effectively discharge

their responsibilities in respect of

internal control.

How KPMG can help

Establishing an internal audit function

that will provide an enduring benefit

to your organization is no easy task.

The process will be demanding on

senior management time and requires

careful consideration of a wide range

of

issues to ensure that the function

works to the organization's best

advantage.

KPMG's business oriented approach

and relevant experience can help you

with this process. We can assist the

organization by determining the

resource requirements, recruiting

staff, and developing an operating

plan.

At a preliminary stage, we can provide

assistance in performing a start-up

analysis to assess the costs and

benefits to be derived by the

organization from internal audit.

Our services

•

Establishment of internal audit

function

•

Internal audit outsourcing

•

Internal audit co-sourcing

•

Secondment of internal audit

staff

•

Internal audit department

restructuring

•

Procedures manual

development

•

Internal audit procedures

review

•

Internal audit function review

•

SOX 404 advisory assistance

•

Internal procedures and

internal controls review

•

Risk assessment and internal

controls design

•

Internal audit training

kpmg.ro

The information contained herein is of a general nature and is not intended to address the circumstances

of any particular individual or entity. Although we endeavor to provide accurate and timely information,

there can be no guarantee that such information is accurate as of the date it is received or that it will

continue to be accurate in the future. No one should act on such information without appropriate

professional advice after a thorough examination of the particular situation.

KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG

International”), a Swiss entity.

© 2010 KPMG Romania S.R.L., the

Romanian member firm of KPMG

International Cooperative („KPMG

International”), a Swiss entity.

All rights reserved. Designed by KPMG.

Printed in Romania.

The assessment would consider the

structure of your organization, the

degree of autonomy of each operating

unit and your organization's overall

control culture and management

philosophy. Having assessed these

issues and decided that the

organization will genuinely benefit

from an internal audit function, there

are a number of steps, as detailed in

the diagram below, which will need to

be taken in establishing a well-

organized and effective function

KPMG internal audit

implementation approach

1

Prepare a detailed

implementation task matrix;

2

Determine Audit Committee and

management requirements and

expectations;

3

Develop and confirm approval of

the internal audit mandate;

4

Recruit and train internal audit

staff;

5

Develop a strategy for internal

audit and a compliance self

assessment process;

6

Develop a risk profile for the

organization;

7

Develop a three-year rolling plan

and annual internal audit plan;

8

Develop and implement

methodology and approach;

9

Conduct internal audit work and

report;

10

Establish internal audit

accountability and quality control.

KPMG will help the organization plan

for and resolve all these issues,

drawing on our in-depth knowledge of

best practice in structuring and

organizing effective internal audit

functions.

KPMG has built up an extensive

inventory of best practices and has an

established network of professionals,

both locally and internationally.

KPMG's internal audit professionals

have worked with a wide variety of

organizations throughout the private

and public sectors by helping them

assess the costs and benefits of

internal audit functions.

KPMG has also assisted in the

development of internal audit

functions, thereby leaving

management free to concentrate on

the key issues facing their

businesses.

Ongoing support

KPMG has the resources to provide

ongoing support by offering advice

and training on a variety of topics

throughout the development of your

internal audit function.

We also have the resources to

outsource staff to your organization

during critical reviews where our

skills, knowledge and experience will

enhance those available internally,

effectively providing on-the-job

training for your own internal audit

staff.

Contact

Serban Toader

Senior Partner

[e-mail]

Richard Perrin

Partner

[e-mail]

Georgiana Iancu (Timofte)

Senior Manager

[e-mail]

Cristina Ionescu

Manager

[e-mail]

KPMG in Romania

Victoria Business Park,

DN1, Sos. Bucuresti–Ploiesti nr.

69-71

Sector 1, Bucharest 013685,

Romania

P.O. Box 18 - 191

Tel:

[phone]

[phone]

Fax:

[phone]

[phone]

E-mail:

[e-mail]

Internet:

www.kpmg.ro