Learning to see the Big Picture

I saw an interesting video on TED today on How art can help you analyze – Amy E. Herman. In the video Amy talks about how learning to analyse art can help doctors, nurses, police officers learn real world skills. Studying art like René Magritte’s Time Transfixed can enhance communication and analytical skills, with an emphasis on both the seen and unseen. You can watch the video here http://ed.ted.com/lessons/how-art-can-help-you-analyze-amy-e-herman. This method could also be used as a tool to help internal auditors be better at their jobs and help them see…

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Companies (Indian Accounting Standards) Rules, 2015 (released on 15th Feb 2015)

MCA has issued Companies (Indian Accounting Standards) Rules, 2015 under the powers conferred by section 133 read with section 469 of the Companies Act, 2013 (18 of 2013) and sub-section (1) of section 210A of the Companies Act, 1956 (1 of 1956). These Accounting Standards (Ind AS) that are inline with upcoming International Financial Reporting Standards, which will alter the way transactions get accounted in India.  During the first phase all companies, listed and unlisted, with net worth over of Rs 500 crore and their holding, subsidiary, joint venture or…

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Whistle Blowing to external partiesVs Raising Concerns to the Internal Audit team

A recent article on Sydney Morning Herald  “Whistleblower’s NAB leak reveals persistent bad behaviour in financial planning, fuels royal commission calls” raises the question about how seriously was internal audit taken in NAB.I am sure the internal audit reports would have highlighted these concerns in addition to the serious issues the internal audit team found in NAB’s It systems in their 2010 report.It also raising an interesting point about how people see internal audit in companies. Was the whistleblower from NAB more comfortable in going to the media rather than…

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Supply Chain Audits

Supply chain professionals do lots of supplier audits. They ask about quality standards, IP data protection, manufacturing process certifications, contract review requirements, document control measures, and source of origin of parts and raw materials. But, surprisingly, they may not be asking how suppliers deal with bribes and corruption issues, according to a recent report from Achilles, a global supplier information management company. Globally, about a third of large companies surveyed said they issue tenders or contracts without having an anti-bribery and corruption policy for their main suppliers, noted Achilles in…

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Is your risk manager helping you maximize revenue?

Studies show that companies lose between 2% to 5% of profits due to revenue not billed or accounted for. This is shocking since the company has already incurred costs and provided the product/service to the customer. Given the regulatory pressure and increased compliance requirements the focus of risk management teams and internal audit functions has shifted from this area as they feel that this is something that would be high on all business owners radars since revenue targets have the most weight-age. However, the incentive plans alone are not a foolproof mechanism…

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Who really wants an independent Internal Auditor?

The Institute of Internal Auditors Guidance Standard 1100 – on Independence and Objectivity states that  “The internal audit activity must be independent, and internal auditors must be objective in performing their work”. However, in who’s interest is this independence? Share holders, employees, management or board of directors? All of them right? Yes, until there is an audit finding :-). In fact, the share holders and board of directors are the ones who are really interested in the independence of the internal audit function. Since, they rely on the function to ensure the…

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Corporate frauds rose by over 45 per cent in India in the last two years – Is your Internal Audit function upto it?

As per a recent article in Economic Times Corporate frauds rose by over 45 per cent in India in the last two years and the lurking risk has been dissuading global companies from investing in India, said a study. Corporate frauds arose out of corruption, money laundering, tax evasion, window dressing, financial reporting fraud and bribery due to weaknesses in internal controls, scarcity of resources and over-riding powers of senior management, it added. The study by Assocham and Grant Thornton said companies related t ..  Read more at:http://economictimes.indiatimes.com/articleshow/45889366.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

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Report: Independent commission didn’t allow independent auditing

As reported by – watchdog.org http://watchdog.org/192474/independent-commission-didnt-allow-independent-auditing-report-says/ The top internal auditor for a state agency that has a say in your electric bill might have had to choose between keeping a job and telling the honest-to-goodness truth. The chief internal auditor of the State Corporation Commission has been reporting to the chief administrative officer, instead of directly to the agency’s three General Assembly-appointed commissioners. The arrangement sets up a potential conflict of interest, a new audit from the Auditor of Public Accounts says. The chief internal auditor, meant to operate as independently as possible, could have risked putting his…

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Internal report helped Mexico to gets green light: DOT ‘opening door’ to cross-border trucking

Sourced from http://fleetowner.com/http://fleetowner.com/fleet-management/mexico-gets-green-light-dot-opening-door-cross-border-trucking Less than a month after an internal audit concluded a pilot program lacked enough participants to be statistically conclusive, the Dept. of Transportation said Friday that Mexican motor carriers will soon be able to apply for authority to conduct long-haul, cross-border trucking services in the United States. Fully opening the border to approved carriers is “a significant milestone” in the implementation of the North American Free Trade Agreement, according to the DOT statement. The policy change ends a 20-year political dispute over the NAFTA trucking provision, and is…

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Internal Audit touches Football Associations

Internal Audit findings were used by Prince Ali to create the basis for the banning for life from involvement in professional football of former FIFA executive committee member and AFC President Mohammed Bin Hammam. However, he failed in getting the Asian group to act on recommendations of an internal audit conducted by PriceWaterhouseCoopers (PWC) to possibly file criminal and civil charges against the disgraced official and renegotiate if not cancel the AFC’s $1 billion master rights agreement with Singapore-based World Sports Group. The burial of the audit by Bin Hammam’s…

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