Actualiteit

Fraud in the Cryptosphere The world fixated on the sheer spectacle of the FTX scandal in early 2023, but the event also raised greater questions regarding digital assets. With parallels the Tornado Cash and Bitzlato debacles, FTX’s collapse and the subsequent impact on the industry it represented has led many to question the long-term viability of crypto assets. Part I of this three-part series on fraud examines common fraud schemes seen in the early stages of a crypto-asset world. You can find part 2 here. You can find part 3 here.

During the last years supply chains have faced many challenges, including the corona pandemic, the war in Ukraine and a move to more sustainable business models. The Committee of Professional Practices conducted research on the role of internal auditors in supply chain risks. Overall this research shows a great diversity in how internal audit departments deal with supply chains risks. Throughout the diverse range of companies and topics studied, few communalities were found. Despite that supply chain is identified as a top risk for organizations in 2023 by CAE's, 30% of respondents indicate not being involved with supply chain risks in any way. These 30% consists of IAFs of different sizes (from 0-5 tot 50+ FTE) and different industries (Construction, Finance and non-profit). A surprising finding given the attention the topic of supply chain receives in this day and age. It might explain why the internal audit literature contains few research and guidance on the topic. IAF's that do work on supply chain take different approaches and scopes tailored to the organization, taking into account different topics. Often these include the topics identified in the literature study underlying this survey. Additionally a diverse range of other topics are taken into account, including security and outsourcing. Another example of the diversity between IAFs found in this study. Future research could be performed on the diversity of subjects, and on providing a common analytical framework for operationalizing audits on supply chain management.  Surprisingly, ESG related supply chain topics such as climate impact are not included by most IAFs. Only three IAFs indicate to include ESG topics in supply chain audits. With upcoming sustainability regulations (and broader societal developments) Internal Auditors have an opportunity to be a driver for ESG related supply chain topics in their organizations. A good chance to be a business partner preparing and navigating the organization through uncertain times!

Part 3, Developing a Resilient Data Analytics Strategy Due to a complex global business and political environment, as well as stakeholder expectations, business leaders are increasingly focusing attention on data analytics to montior risk and drive strategic decisions. Internal audit already adds value by offering perspective and insights that can help organizations develop forward-looking strategies. An appropriate and resilient data strategy can support and augment that effort. This Global Knowledge Brief examines how chief audit executives (CAEs) and their teams can craft data analytics strategies that enhance internal audit capabilities, determine what technologies best suit their needs, and enhance assurance on key areas of data protection, regulatory compliance, and effective overall data governance.  This is for members only. To access it and other valuable resources, become a member today. You can find part 1 here. You can find part 2 here.  

This paper, prepared by ecoDa on behalf of Governing Bodies, FERMA representing European Risk Managers and ECIIA representing Internal Auditors, focuses on good governance. Governance models such as the Three Lines foster cooperation among all functions and operations within a company, so that sustainability can be truly embedded in business operations and strategic sustainability-related objectives can be achieved. Risk Management (Second Line) and Internal Audit (Third Line) are key forces to support the Board and Senior Management as essential parts of the Three Lines model, and more broadly. It shows why Directors, Risk Managers and Internal Auditors should act now so their companies can fulfill their sustainability responsibilities and expectations. Embracing the European sustainability challenge will require a comprehensive understanding of the organisation, its strategy, business model and value chain; and the impacts, risks and opportunities that it faces. Cooperation between functions is more important than ever, particularly on ESG as it is a truly transversal topic. ESG embedding: are you ready? Press-release

Part 2: Gathering, Understanding, and Visualizing Data ?As organizations increase their reliance on data to enhance products and services, internal auditors are positioned to leverage this ever-growing resource. Data analytics, robotic process automation (RPA), artificial intelligence (AI), and other tools provide practitioners accessible and valuable avenues to improve efficiency and effectiveness in assurance services and increase internal audit's value to the organization. Areas where data analytics can improve internal audit services include performance reporting, fraud prevention and detection, continuous monitoring, and risk assessment. This Global Knowledge Brief, the second of three that focus on data analytics, explores data in its various forms, data gathering techniques, the importance of data validation, data analysis, and keys to effective storytelling with data.   You can find part 1 here. You can find part 3 here.