Actualiteit

Climate Change and Environmental Risk is a very relevant and important subject for most organisations. For many organisations this is a reason to reconsider and adjust their future course. In view of the strategic importance for the organisation, there is also a role for the internal auditor here. Risk in Focus (RiF), the annual survey of auditors in Europe (ECIIA) confirms this. Climate change is in the top 10 of current risks and is increasing in importance. However, we see that the time spent on climate risk is still limited. This seems to be the right moment to look at how the Internal Audit Function (IAF) can properly support the organisation on this theme. The aim of the research conducted by IIA Netherlands is therefore to provide IAF’s with tools to do so. The report answers questions such as: What role could the IAF play? What 'products' can it offer? Which tools can be used for this? What expertise is needed (extra) for this? And how do you implement this within the IAF?

Climate Change and Environmental Risk is een zeer actueel en ingrijpend onderwerp voor vrijwel alle organisaties. Het is voor veel organisaties aanleiding voor een heroverweging en aanpassing van de koers. Met het oog op het strategisch belang voor de organisatie ligt hier ook een rol voor de internal auditor.  Risk in Focus (RiF), het jaarlijks onderzoek van auditors in Europa (ECIIA) bevestigd dit. Klimaatverandering staat in de top 10 van actuele risico’s en stijgt in belang. We zien echter dat de tijdsbesteding op het gebied van klimaatrisico nog gering is. Dit lijkt hét moment om te kijken hoe de Internal Audit Functie (IAF) de organisatie goed kan ondersteunen op dit thema.  Het doel van het door IIA Nederland uitgevoerde onderzoek is dan ook Internal Audit Functies (IAF’s) daartoe handvatten te bieden. Het rapport geeft antwoord op vragen als: Welke rol zou de IAF kunnen spelen? Welke ‘producten’ kan zij bieden? Welke hulpmiddelen zijn daarvoor te gebruiken? Welke deskundigheid is daarvoor (extra) nodig? En hoe implementeer je dit binnen de IAF? 

Internal audit’s role in ESG reporting Conversations and focus on sustainability, typically grouped into environmental, social and governance (ESG) issues, are quickly evolving — from activist investor groups and inquisitive regulators pushing for change to governing bodies and C-suite executives struggling to understand and embrace the concept. At the forefront of this new risk area is pressure for organizations to make public commitments to sustainability and provide routine updates to ESG-related strategies, goals, and metrics that are accurate and relevant. However, ESG reporting is still immature, and there is not a lot of definitive guidance for organizations in this space. For example, there is no single standard for what should be reported. What is clear is that strong governance over ESG — as with effective governance overall — requires alignment among the principal players as outlined in The IIA Three Lines Model. As with any risk area, internal audit should be well-positioned to support the governing body and management with objective assurance, insights, and advice on ESG matters. The following provides an overview of risks related to ESG reporting along with context on the growing sustainability movement. It also outlines internal audit’s role in ESG reporting and how internal audit can support ESG objectives and add value.

A pivot is a change in strategy without a change in vision. Internal auditors, by nature, like order and certainty. But the global health crisis has allowed for none of that. Its disruption thrust internal auditors into the uncomfortable position of having to completely abandon or revise their well-thought-out plans and familiar checklists and processes — fast. They had to pivot — often, multiple times — to ensure they did not falter in providing independent assurance that their organization’s risk management, governance and internal control processes were operating effectively. But many internal audit functions needed to be more agile and flexible than ever before for another critical reason: The business needed their help to survive. The internal audit organizations most successful at pivoting, and helping the business to do the same, are those that had already embraced next-generation internal audit practices before the COVID-19 pandemic. These functions, which are more agile and technology-enabled, were well-positioned to support the business in new, innovative ways driven by the crisis. For this edition of Internal Auditing Around the World®, we thought it would be appropriate to focus on the topic of resilience, given everything internal audit teams and their companies have been through lately. More specifically, we asked chief audit executives (CAEs) and their colleagues: “What is internal audit’s role in business resilience?” To summarize their responses: It’s pivotal. Featured Companies The organizations profiled in the latest edition represent a cross section of countries and industries, including Booking Holdings, Centene Corporation, DBS Bank, FIS, GlobalFoundries, Grupo Bepensa, Inchcape plc, Knowles Corporation, Masonite International Corporation, stc (Saudi Telecom Company) and Standard Chartered. The new edition of Internal Auditing Around the World addresses how internal audit functions early into the evolution process have found that changes they’ve made so far — whether it was automating a critical process, expanding analytics capabilities, learning about agile auditing or encouraging an innovative mindset — allowed them to be more adaptable and resilient amid unprecedented disruption. Eleven organizations were interviewed and their experiences dealing with this transformation are presented as case studies in the book.

The Covid-19 pandemic has been the most significant disruptive event for decades, impacting the political, social and economic environment of insurance companies for years to come. It has been a catalyst for several distinct pre-existing macro trends: use of technology, workforce and ESG (sustainability). This research paper by the ECIIA addresses the following topics: Impact of macro trends: on insurance and Internal Audit, focusing on those directly resulting from the Covid-19 pandemic Reaffirming the Purpose of Internal Audit: Judgement at the Core of Audit Assurance; Impact of the New Ways of Working: Environment and risks; Remote Auditing: Opportunities, Audit needs and limits; Future of Audit Work in the light of process automation and remote working