Vaktechnische Publicaties

This practical guidance is part of the Risk in Focus 2021 publication. It aims to provide a concise overview of key publications and existing tools developed by the 10 European institutes of internal auditors in Austria, Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Spain, Sweden, the UK & Ireland and publications from IIA Global. This guidance is developed to help internal auditors address some of the key risks identified in Risk in Focus 2021, with the aim of contributing to the reduction of their impacts on businesses and stakeholders. Where the Risk in Focus report itself addresses the ‘WHAT-could be important to audit’, this guidance helps you address the ‘HOW-to audit’ this topic. For the 2021 edition, practical guidance and webinars will be available on the following three chosen topics from the report: Guidance Cybersecurity and data security Webinar Cyber and Data Security  Guidance Macroeconomic and geopolitical uncertainty Guidance Climate change and environmental sustainability These topics have been selected due to their current and foreseen importance for most organisations and take into consideration the needs of Chief Audit Executives to strengthen or expand their knowledge and experience in auditing these three fast-developing risks. Please keep in mind that we intentionally chose to dive into some specific components of these three risks. Whilst we have endeavored to explore what we think are the key focus areas of these risks, a thorough understanding of their application may require additional research on your part, but we aim to provide a selection of what would benefit the most to the profession in the current context. All practical guidance is designed to firstly, help practitioners learn from experienced professionals (experts, operational teams or internal audit), and, secondly, offer practitioners useful reflections that we believe are of particular interest when auditing these topics and their associated risk management processes. About Cybersecurity Cybersecurity and data security has been one of the top three priority risks identified in Risk in Focus over the past five editions. It is documented as the number one priority risk for 2021, and this trend is expected to continue for the next three years. As a result, a number of resources have been produced within the IIA network to support practitioners navigating this risk.  

This publication is a comprehensive overview of IIA NL’s research into non-traditional auditors. It provides a comprehensive overview of better practices identified related to competence, quality, independence, objectivity, selection and reward of non-traditional auditors. For readers interested in a more extensive publication; please read the extended edition with more guidance and background or a scientific version published in MAB.

To bring a high level of expertise on-board IAFs increasingly include persons that are not trained as auditor and/or have no experience in performing internal audits. These non-traditional auditors, often named rotational auditors, guest auditors or ‘subject matter  experts’, function as part of the IAF for a specific period of time and come from within the organization or are hired from the outside. The use of non-traditional auditors has several advantages for the non-traditional auditors themselves, the IAF and the organization. The purpose of this document is to share better practices regarding the use of non-traditional auditors in the IAF. These real-life examples are recommended protocols put in place to profit from the advantages of using non-traditional auditors, to ensure their valuable inputs contribute to the objectives of the audit function without compromising the quality of the audit process and its outputs.   You can read the comprehensive overview here  

Without question, 2020 was defined by the global coronavirus pandemic (GCP). By March, as the research for Risk in Focus got underway, Europe had become the epicentre of the biggest public health crisis in living memory. This caught most countries and businesses off guard, despite the fact the World Economic Forum and others had already been sounding the alarm on global health security and the probability of a pandemic event.  Not only has the virus had huge public health consequences, social distancing and lockdown measures have had profound economic impacts. The GCP is the most significant and far-reaching event for businesses since at least the global financial crisis of 2008, and is expected to cause a deeper recession, higher rates of unemployment and bigger increases in public debt.  Businesses and their risk profiles have been significantly affected by coronavirus. The safety of workers has been a priority, with staff sent home to work in the first half of 2020 under orders from governments and employers. Lockdowns inevitably caused immense operational disruption as companies were forced to rapidly adjust and sectors including manufacturing, construction and industrials had to reduce output in order to maintain distancing measures within their core business. The beginning of summer 2020 was marked by an easing of restrictions as governments managed the delicate balance of kickstarting their economies with resurgences in infections. It is expected that this challenge will have to be managed throughout 2021. Although the exact course of the pandemic’s development is uncertain, it was continuing to accelerate in the second half of 2020. The longer-term implications of this exceptional scenario are less clear. Lessons will be learned over the coming months and years by governments and businesses. Internal audit can and should assist in this regard. Its unique 360-degree view of the business and risk-control mindset can help organisations identify their blind spots and opportunities to improve their operations. Looking ahead to 2021, internal audit’s enterprise-wide perspective has never been more necessary. Boards and executive management teams will depend on this independent top-down viewpoint for insights into the business and its risks during what remains a significantly challenging period. This is the exceptional backdrop against which this year’s Risk in Focus is set. Also available: Board briefing Guidance Cybersecurity and data security Webinar Cyber and Data Security  Guidance Macroeconomic and geopolitical uncertainty Guidance Climate change and environmental sustainability

Putting risk into focus for the board Board members must be aware of their organisations’ principal risks (and opportunities) and the external threats to their operations and strategies. They should also have confidence that internal audit is prioritising these. Especially now. The risk landscape has taken a dramatic and unexpected turn. Looking ahead to 2021 we see that the global coronavirus pandemic (GCP) is likely to shape the risk profiles of organisations in many ways. Rather than posing a novel risk, the pandemic has exacerbated and magnified existing risks as well as opportunities that you as a board member should be mindful of.  This briefing summarises insights from the latest edition of our annual report, Risk in Focus 2021 (RiF21), which this year is a collaborative project between ten institutes of internal auditors from across Europe.

The internal audit function has an important role to play in providing assurance over the effectiveness and security of key processes outsourced from (re)insurance undertakings to third parties. It is crucial that key stakeholders, including management, the board and the (re)insurance undertaking’s supervisors can place reliance on the work of internal audit in respect of the risk management of third parties, while at the same time maintaining a reasonable expectation of the extent of the internal audit function’s responsibilities in this area. This paper sets out the view of the ECIIA Insurance Committee (the Committee). It is based on the position paper on Internal Audit Oversight of external outsourcing issued by the ECIIA Banking Committee, on best practices that could be adopted by internal audit functions in respect of the audit of externally outsourced services. This paper was adapted to the specifics of the (re)insurance undertakings, in particular the regulatory requirements of Solvency II. This paper does not consider: Outsourcing of internal audit as a function Internal outsourcing (from one legal entity to another within the same group), albeit many of the same concepts could be applied

Internal Auditing Around the World, Volume 16 - The future auditor had arrivedThe future auditor has arrived. It’s a bold statement — and it’s true. The future auditor is a vision, inspired partly by the definition of internal auditing from The Institute of Internal Auditors: ‘‘an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations.’’ When Protiviti first articulated this vision in 2014, we explained that the future auditor, once personified, would be recognized as a ‘‘positive change agent’’ in the organization. We also asserted that chief audit executives (CAEs) who embraced this vision would be ‘‘better positioned to demonstrate to executive management and the board the value contributed by internal audit through their comprehensive risk focus and forward-looking, change-oriented and highly adaptive behavior.’’ Six years later, we see that many internal audit leaders around the globe have answered that call to action — and are committed to bringing forth a next-generation internal audit function. They, and their teams, have disrupted their function’s status quo by thinking differently about how internal audit performs its work and delivers results that do, in fact, add value to the business.

This Global Perspectives and Insights describes the Internal Audit Ambition Model from the perspective of several CAEs who have applied it. Looking toward to its potential applications, the report considers how the model may be used as part of the internal audit activity’s quality assurance and improvement program (QAIP). In today’s unprecedented and volatile business environment, organizations face a future that is as difficult to predict as it is open for creativity and innovation. The internal audit activity can play a vital role in helping organizations anticipate, evaluate, and respond to risks and opportunities. And CAEs must effectively demonstrate that value. CAEs need robust tools to continuously enhance the value that the internal audit activity provides to management and the board. Perhaps equally important, the right tool should enrich the ability to clearly express internal audit’s potential. The Internal Audit Ambition Model seeks to help CAEs achieve those goals. The Internal Audit Ambition Model may help the internal audit activity: Adopt a common approach and consistent criteria for conducting self-assessments of its current (“achieved”) quality. Help drive conformance with the The IIA’s International Professional Practices Framework. Establish a peer benchmark against which to compare itself. Create a visualization of its achievements in key process areas. Identify the “ambition” level to which it aspires. Identify gaps that must be filled to achieve its desired ambition level. Communicate with senior management and the board about its achieved level of quality and its level of ambition. According to the model’s authors, the word “ambition,” distinguishes this model from maturity models because it communicates the CAE’s choice about the level to which the internal audit activity should aspire. The choice takes into account the input of senior management and the board in light of factors such as the complexity of the organization, the size of the internal audit activity, and the industry in which the organization operates. The word “ambition” moves the focus from simply meeting the requirements to inspiring intentionally chosen improvements.  

This paper offers a practical approach to directly address the scenario of an increased risk of fraud (corruption, misappropriation of assets, fraudulent financial statements) in organizations due to the pandemic. It considers related key actions, including assessment of vulnerabilities, risk mitigation, and monitoring fraud alerts (red flags). This report also presents a useful analysis on how to face a possible increase in the risk of fraud in these times of COVID-19 (pre- and post-pandemic) from the perspectives of the fraud triangle, the Three Lines of Defense model, cybersecurity, and global risk. People and organizations around the world are fighting to overcome the crisis caused by the COVID-19 pandemic and its direct and collateral effects. In this fight, internal auditors are actively helping organizations overcome and recover from the crisis. Download it today and watch Continuing the Conversation for a deeper dive.

Organisaties zijn ondernemingen van mensen, die actief zijn in een wereld die steeds onzekerder, complexer, meer onderling verbonden en volatiel wordt. Vaak hebben ze meerdere stakeholders met verschillende, veranderende en soms tegengestelde belangen.

The Three Lines Model helps organizations identify structures and processes that best assist the achievement of objectives and facilitate strong governance and risk management.

Information technology is a fundamental part of all organizations, so internal auditors should have a fundamental understanding of their organization’s IT functions and processes. Because IT is imperative to business strategy, understanding the impact technology can have on business processes and making accurate and timely recommendations can elevate internal audit as a trusted advisor and value creator. This guidance will enable internal auditors to understand: The relationship between IT and the business. The various network structures, components, and related concepts. IT infrastructure, including hardware, software, and databases. How organizations use, implement, and develop applications. Relevant topics such as data analytics, social media, machine learning, RPA, and more. This is for members only. To access it and other valuable resources, become a member today.

Na de practice guide (PG) over Auditing Culture (eind 2019), is nu een specifieke PG verschenen over Auditing Conduct Risk. Zoals wordt aangegeven is ‘gedrag’ niet gemakkelijk te scheiden van de cultuur; gedrag kan worden gezien als de manifestatie van cultuur. Deze PG is vooral gericht op de financiële sector en op het evalueren van het management van  het ‘conduct risk, ofwel het risico van wangedrag. Daarbij wordt uitgegaan van de ‘nalevingsstrategie’ (de organisatie vertelt duidelijk wat het gewenste gedrag is, bewaakt dat en sanctioneert bij overschrijdingen). Minder aandacht wordt besteed aan de zogenaamde ‘stimueringsstrategie’, gericht op het moreel redeneren door de medewerkers in lastige situaties (dilemma’s), zoals vaak ook onderdeel is van compliance- en integriteitsprogramma’s binnen organisaties. English The issue of conduct is not easily separated from an organization’s culture; rather, it is a distinct segment of culture as a whole. Internal auditors can add value by assessing and reporting on their organization’s conduct risk management. The internal audit activity can help drive strong internal control risk management frameworks (including conduct risk) that align with stakeholder expectations, supporting boards, audit committees, and executive management in their oversight roles. This guidance will enable internal auditors to understand: The business significance of conduct risk in an organization’s control environment. The key components of conduct risk. Key stakeholder (including regulator) concerns and expectations related to conduct risk. Internal audit’s role in assessing and reporting on organizational culture and management of conduct risk. An approach to assess and report on an organization’s culture and management of conduct risk. The eBook Practice Guide: Auditing Conduct Risk costs $25.00

In today’s unprecedented environment, effective internal auditing requires thorough planning coupled with nimble responsiveness to quickly changing risks. To add value and improve an organization’s effectiveness, internal audit priorities should align with the organization’s objectives and should address the risks with the greatest potential to affect the organization’s ability to achieve its goals. Ensuring alignment between internal audit priorities and the organization’s objectives is the essence of Standards 2010 – Planning, 2010.A1, 2010.A2, and 2010.C1, which task the chief audit executive (CAE) with the responsibility of developing a plan of internal audit engagements based on a risk assessment. This practice guide will help the CAE and internal auditors create and maintain a risk-based internal audit plan. The guide describes a systematic approach to: Understand the organization. Identify, assess, and prioritize risks. Coordinate with other providers. Estimate resources. Propose the plan and solicit feedback. Finalize and communicate the plan. Assess risks continuously. Update the plan and communicate updates. The eBook Practice Guide: Developing a Risk-based Internal Audit Plan costs $25.00

The first in a three-part series, this report serves as a how-to guide to assist internal auditors in assessing their current level of preparedness regarding privacy and data protection issues, particularly as their approaches relate to the present state of the profession overall.  Further, the report is intended to help internal auditors understand specific risks and threats and to help them ensure that relevant controls are developed, implemented, and operated effectively. The framework, audit plan, and implementation discussions in the later sections of the report are designed to provide a foundation on how internal audit departments can build their own structures. You can find part 2 here.