Weekly Wrap – 12th September 2013

VIDEO HIGHLIGHTS

0.20 – Issues analysis core competency

1.19 – Why don’t we do analysis better

1.49 – Issue analysis is value adding

VIDEO TRANSCRIPT

Hi I am Tom McLeod, Managing Consultant for McLeod Governance.

The analysis of outstanding audit issues – whilst it may sound basic – is core to a well functioning internal audit function.

In my experience over the last twenty years, on average irrespective of industry or organisation, there are about ten issues per report.

So if you are producing twenty reports per year there are two hundred issues to look at.

If you are producing two hundred reports per year there are two thousand issues to look at.

The amount of information that we can get from analysing the outstanding issues in terms of their content and why they still remain outstanding is fundamental to improving the controls of an organisation.

Why don’t we do it better than what we are currently doing at the moment?

McLeod Governance has three explanations for that.

One is the simple one.  A lack of time.

Secondly a lack of appetite on behalf of our stakeholders.  And on that part I think it incumbent upon us to talk to our stakeholders not about what we find but the connections of the issues that we are finding – a key element of outstanding issues analysis.

And the third thing is that I am not sure we really have the technology right at the moment.

A lot of the outstanding analysis is done on Excel spreadsheet.

We have to move away from that and move to something that is more intuitive and real time.

When we do arrive at that point I think that we will find that this is where we will add enormous value to an organisation; not only in providing the independent assurance but in providing the insights from the inter-connectivity of the respective issues that it allows us to see and identify.

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