PART II - Risk Assessment, Planning and other ways for doing the 'right things'.
1. Does the CAE (Chief Audit Executive) You? use the organization's documented Strategic and Technology Plans/Organizational Goals or a combination of these documents for your macro risk assessment i.e., annual planning? (If Yes, score = 3)
2. Is the CAE involved in the organization's Strategic Planning and/or Goal Setting sessions? (If Yes, score = 5)
3. Is Executive Management actively involved up front in the Risk Assessment process through interviews or group meetings? (If Yes, score = 4)
4. Does your IAD (Internal Audit Department) have a universe of auditable entities, such as locations and cost centers? (If Yes, score = 2) If the universe includes business processes - add 2 to your score.
5. Does your IAD have a documented inventory of significant risks, usually the result of the aforementioned planning sessions or management interviews? (If Yes, score = 5)
6. Is CSA or CRSA (Control Risk Self Assessment) used in your Risk Assessment process (If Yes, score = 4)
7. Does your Risk Assessment process incorporate measurable risk factors and weighing calculations for prioritizing? (If Yes, score = 3)
8. Do you assign estimated staff-days to the resulting priority listing of audits? (If Yes, score = 3)
9. Are the results of your Risk Assessment, usually the annual plan, presented to Executive Management and the Board (Audit Committee) for comment and approval? (If Yes, score = 4)
10. Your Risk Assessment often will identify areas (below the line) that cannot be audited with existing resources. Do you present the higher ranked areas just below the line during your presentations to Executive Management and the Board? (If Yes, score = 5)
11. Is there an established methodology to incorporate the strategic objectives/goals or significant business risks, developed during your Risk Assessment process, in the planned individual audits? (If Yes, score = 4)
12. Is a corresponding risk assessment process used during your individual audits? (If Yes, score = 5)
If YOUR Total Score is between:
1 to 15 - Don't feel bad. Let us know and we will offer some advice on how you may be able to reinvent your Internal Auditing Department.
16 to 35 - Not bad! Contact us and we will be glad to share with you some ideas on enhancing your Internal Auditing Department.
36 to 49 - WOW! Contact us because we want to do an article on an Internal Auditing Department that has it all together.
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