Our firm and the risk services team have substantial experience providing internal audit services to organizations of all industries and sizes. Internal audit relationships range in scope from risk assessments and special projects to full outsourcing of a company’s internal audit function. There are a number of benefits of engaging Brown Smith Wallace to provide internal audit services.
Significant experience providing fully outsourced and co-sourced internal audit services
Unequaled technology risk resources and capabilities
Our integrated (financial, operational and technology) approach to helping clients evaluate and manage business risk and improve processes and internal controls
High quality deliverables: on-time and within budget
A focus on adding value, not just compliance
Our critical mass that enables us to provide resources when needed
Ability and experience providing services globally through our Moore Stephens affiliation
Professional services firm grounded in client satisfaction
We take great pride in being your trusted advisor. Our role as your advisor does not just include performing the identified assignments. It also includes providing leadership to your organization in the areas of risk management and process improvement. The depth and breadth of our internal audit experience along with the active involvement of our most senior team members allows us to bring ideas to help you improve the company. We encourage you to speak to our clients about our role as their trusted advisor.
Risk Assessment and Audit Planning
The foundation for an effective internal audit function is understanding and focusing on areas of greatest risk and opportunity. Our risk assessment methodology provides a consistent approach to risk and opportunity analysis. Deliverables include a risk profile, which serves as the foundation for developing a risk-based audit plan, identifying needed management initiatives, and generating specific recommendations for performance improvement. Our approach will help you determine whether the organization is taking appropriately managed risks to achieve its business objectives. This information contributes to enhanced decision-making, improved risk management and increased business performance.
Our risk assessment approach is predicated upon an understanding of risk from the enterprise perspective. We then drill down into the business units, processes and initiatives that impact the organization’s overall risk profile. To conduct an appropriately focused risk assessment, we must understand the company’s view of risk and risk tolerance. Our risk assessment methodology enables us to quickly develop this understanding. We often use the results of an enterprise risk assessment to work with management and the audit committee to establish a risk-based audit plan.
We have risk assessment products for the entire enterprise, covering fraud, Sarbanes-Oxley and a variety of specific financial, operational and IT areas. We are often engaged to provide these services by companies that are establishing an internal audit function or are interested in obtaining more value from their audits through a risk-based audit plan.
Risk Based Audits
Our internal audits are designed to take a risk-based approach to evaluating the area(s) under review. Our approach includes the following:
We identify potential risks to the achievement of goals and objectives. Through discussions with management, reviews of internal control guides and our experience with other similar organizations, we identify risks related to financial, operational and compliance objectives for the areas being reviewed.
As risks are identified, we evaluate the overall impact the risk could have to the process and the likelihood that the risk will occur.
As we gain an understanding of the policies, procedures and practices for the areas under review, we identify internal controls that have been put in place to mitigate the relevant risks.
During our procedures, we evaluate the design of internal controls to determine their effectiveness at mitigating the relevant risks. In addition, we also perform tests to evaluate whether controls are operating as described.
We have found this approach ensures audits are focused on areas of greatest risk and opportunity, which results in more valuable feedback to management and a more cost-effective audit.
Specialized Internal Audits
Companies often look to third party service providers to bring experience and expertise to address risks unique to their organizations. The depth and breadth of our professionals and client base has allowed us to develop specialized skills in a number of different areas that may be relevant to your organization. Some areas where we have worked with clients in recent years include:
At Brown Smith Wallace, we have had significant success in integrating data analysis tools (computer assisted audit techniques) into our audit approach. These tools allow us to be more efficient and effective in our audit approach for areas with significant volumes of data. Our team includes individuals that have been trained in the implementation and use of data analysis tools (e.g., ACL, IDEA and MS Access). These tools enable us to analyze 100% of the data in a population and can be used to:
Select samples
Automate the testing of specified attributes
Identify exceptions that exist within the data population
Focus on unusual data or trends
Put in place continuous monitoring solutions (e.g., identify exceptions that need to be investigated throughout the year versus testing at a point in time)
International Audit Assistance
Brown Smith Wallace is a member of Moore Stephens North America, Inc. and Moore Stephens International Limited. The Moore Stephens network is now one of the leading international accounting and consulting groups outside the Big Four, comprising approximately 600 offices in 98 countries worldwide with more than 17,000 professionals. Combined, Moore Stephens is ranked as the 6th largest public accounting firm in the U.S. and the 11th largest globally. We have performed audits by leveraging the Moore Stephens network in over 20 different countries over the last three years.
Outsourcing
We work with a number of companies to fully outsource their internal audit functions. Our highly experienced team can help you:
Establish a new internal audit function
Manage the internal audit function
Perform risk assessments and develop audit plans
Perform specific internal audits
Work with executive management and the audit committee
Provide subject matter expertise
Provide an internal audit framework and methodology
Companies find outsourcing of the internal audit function to be cost effective because:
The service provider is able to provide experienced internal audit professionals with specialized skills.
Management can effectively manage costs along with peaks and valleys in the internal audit schedule.
Executives can reduce the effort and costs of internally managing the internal audit effort.
The service provider brings leading internal audit practices to the company.
The service provider can bring outside and diverse perspectives to business issues
Our approach is risk-based and flexible to address your unique environment and budgetary constraints. We work closely with our clients to ensure all activities are thoroughly planned and executed to minimize the impact on normal business operations.
Co-Sourcing
We have the talent and expertise to provide you with a wide variety of co-sourcing options. You can maintain control of the audit function while utilizing our internal audit professionals to address your staffing needs. Co-sourcing engagements can include staff augmentation or engagements to perform certain audit projects. Companies often hire us as their co-sourcing partner to address staffing shortfalls or to contract for specialized expertise (e.g., technology audit professionals).
We have the depth and breadth of experience to help you with specific audits, risk assessments or special projects. By co-sourcing with us, you are able to cost-effectively manage costs while addressing staffing and technical needs, ultimately increasing the value proposition to your company.
Staff Augmentation
We can provide talented staff on an as-needed basis. We hire experienced staff, which eliminates any need for you to provide time consuming training. This helps to minimize disruption and promotes continuity on assignments.
Special Projects
Special projects can lead your current staff into unfamiliar territory and often include complex project management requirements. When you do not have the in-house talent and expertise to accomplish what you need to get your desired results, we can perform those projects for you. We have the depth of experience equal to that of national firms with the added benefit of a broad and deep local presence.
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