Ways to Incorporate Strategic Objectives into Internal Audit Plan
Internal auditingteams must check whether or not your company is incorporating its strategic objectivesin audit plans and other operational concerns.
Your company will face existential risk due to strategic risks. Strategic risks may cause 80% damage to your company’s market share. Often, internal audit teams spend the majority of their time on operational and financial audits ignoring the strategic risks.
Although all these areas are crucial, audit teams need to incorporate your company’s strategic objectives into their audit plan. This will help you to gain an insight of whether or not your company is on the right track or not.
At VGNC, we believe that internal audit is incomplete without incorporation of strategic objectives. Today, we will discuss a few methods using which you can incorporate your company’s strategic objective in your audit plan.
One of the popular approaches used in investing, this method can help you to ensure that your audit plan gives a satisfactory record of your company’s strategic priorities. It is one of the best ways to gather information and insight about whether your company and its employees are true to the strategic objectives.
Information is collected from unit-level processes that have a strong impact on corporate objectives of your company. We encourage our clients to make enterprise level goals the core of their annual audit. Our clients were able to identify strategic procedures that need careful scrutiny.
Basically, it is the starting point of all the corporate strategic objectives. In this method, you can make organization-wide drivers that have strategic value an essential input while creating a new audit or risk assessment plan.
In this type of audit, the analysis begins with the identification of strategies that is of highest value to stakeholders. The functions and processes are evaluated while keeping their specific contribution to these strategic objectives in mind.
The audit projects are first grouped into the themes of strategy and then aligned with the enterprise risk. Value driver analysis is used to filter all the potential engagement for final selection. The focus is laid on the process that is creating the most value for your company.
This method is a perfect blend of both top-down and bottom-up method. This blended approach ensures the strategic plan and objectives of your company are accounted for. The information is diligently collected through management interviews to avoid any kind of wrong information or missing information.
Whether the corporate objectives are to be met or not based on strategic planning is verified at a high level. Further drilling is done by asking detailed questionnaires during management interviews. This helps the audit team to understand unit strategies for your business. The result of risk assessment and audit is in tune with business and enterprise- level strategies.
These are some methods that help you to incorporate strategic objectives of your business into your audit plan. A right internal audit consulting partner can help you to achieve long-term goals by ensuring that your corporate goals are prioritized right from the unit level.