Risk Assessment and Internal Audit Plan Development
An effective internal audit department places heavy reliance on a sound risk assessment process. Stinnett & Associates assists clients in developing and completing a comprehensive risk assessment. This helps determine the appropriate level of audit coverage for the company’s environment. We begin by reviewing the global “audit universe” and assisting in defining the risk factors associated with each identified process or area as well as facilitating discussions with key personnel. The end result is a risk-based audit approach which gives Internal Audit a more focused plan. In addition, management is provided with more beneficial information and enhanced value is derived from Internal Audit’s services.
Essential to strong risk management and to the development of comprehensive internal control systems are well-planned, properly structured audit programs. Once the risk-based audit plan is created, Stinnett & Associates can help management in prioritizing the primary risks to be addressed, and in mapping the key risks across organizational structures, processes and systems. Once the risks have been assessed, we help determine how they will be audited. Our internal audit work programs incorporate audit objectives, scope of work, and audit techniques to be applied. We customize the work to address operational, compliance and financial risks as applicable and in accordance with the overall plan.
Establishing an Internal Audit Department
Stinnett & Associates helps companies develop or enhance internal audit departments. In creating the internal audit department, we assist in authorizing and organizing the internal auditing organization, performing risk assessments and scheduling audits. We assist with the creation of internal audit charters, policies and procedures and help in the managing and training of personnel.
Quality Assurance Review
Stinnett & Associates helps clients measure the quality of their internal audit function to ensure and preserve its value to the organization. Using an approach which we tailor to our clients’ needs, we assess the department’s structure, use of technology and methodologies. We also evaluate personnel, audit approaches and performance as compared to plans. We benchmark policies and procedures relative to professional standards and audit methodologies to best practices and the department’s focus on identifying and addressing the needs of its customers. The results, which are communicated to Internal Audit, company management and/or the Audit Committee help the internal audit group understand their strengths and identify opportunities to enhance performance of the department, resulting in greater assurance and enhanced client satisfaction.
Outsource/Co-Source Solutions
Co-Source Solutions
For clients that already have an established in-house internal audit function, Stinnett & Associates partners with them to provide a range of co-sourcing services. Co-sourcing allows the client to remain in full control of their in-house function, while providing a number of benefits to them. We provide support for the development of in-house staff through supervision, training and joint-sourced audit teams. This allows client personnel the opportunity for thought-exchange and enhancement of core audit skills. We also provide an experienced internal audit staff to assist during heavy work periods, allowing specialized industry process or technical skills to compliment Internal Audit teams.
Outsource Solutions
Stinnett & Associates provides fully outsourced, risk-based internal audit functions to our clients. This enables the management team to focus their attention on the core operations of the business while ensuring they and the Board receive independent assurance on the management of key risks. Our outsource solutions cover most aspects of risk management including the identification of enterprise-wide risks, development of strategic and annual internal audit plans, delivery and work management through to periodic reporting to the Board and Audit Committee.
We currently are performing or have performed successful outsource projects. For example, one project involved functioning as the Internal Audit Director for a public company, for which Stinnett & Associates supervised and directed the Company’s internal audit staff. We also provided assistance on financial and operational audits.
We work closely with our outsource clients to ensure we fully understand the nature of their business and the risks they face. We develop a solid rapport with operations management to increase the frequency and quality of communications with them. This helps ensure our audit plans can be modified and dynamic in response to the ever-changing challenges our clients face.
Project Management
Stinnett & Associates provides project management at a level to meet customer requirements. We are comfortable leading a project or working side-by-side with our client project manager to assist as needed. Our main focus is communication and results will be shared throughout the engagement. We will schedule meetings to discuss findings, proposed recommendations, implementation details, and other project critical information. Depending upon the nature of the engagement, recommendations will be formally communicated in writing either in a draft report or in findings sheets. We always will provide a draft of a report to be sent to management for feedback.
Final reports are issued with management’s responses. Reports are issued to the relevant members of the audited area as well as key internal and external parties depending upon the nature of the engagement - this would include the CEO, CFO, Corporate Controller, Business Unit management, Audit Committee and External Auditors.
