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Inside Internal Controls

News and discussion on implementing risk management

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Budgeting and Auditing

CEOs are not idiots when it comes to risk management

If you consider the small number of organizations where risk management is considered as providing a strategic advantage, one of these alternatives must be true:

 

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If risk management is the answer, what is the question?

We need to stop coming up with new words and phrases when all we need to address is the effectiveness of management. So stop talking about ERM, IRM, or even objective assurance, and start thinking about how to obtain reasonable assurance that the management of the organization, including how it sets objectives and makes related execution decisions, is effective.

 

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Anti-money laundering considerations in cannabis finance

While the right financing structure can be a critical advantage to any cannabis-related business, it is also important to remember that there are legal considerations involved, including in respect of anti-money laundering (AML) matters.

 

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Time (again and still) for the IIA Standards to be correct

Internal audit can assist management by facilitating a fraud risk assessment. Management should make the decision both on the level of risk and whether it is acceptable. Internal audit can provide their opinion and advice on both.

 

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Decision-making and the practitioner

McKinsey has shared three articles with insights into effective decision-making.

 

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How often should you assess risk?

I recently listened to a new video by my friend, Alex Sidorenko. In How often [should] the risk assessments be performed, he makes some solid points, including:

 

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A board that would fail any test of its governance practices

I am planning a meeting with the CRO from a company during which I had planned to share some of the principles of effective risk management, based on what is considered world-class, and the governance of risk management by the board.

 

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Beyond due diligence: Ongoing third party risk management

There is something in a name. More people in the compliance industry, when referring to third-party due diligence, are labeling it “Third Party Risk Management.” I like it because it is more accurate.

 

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Is internal audit being distracted by consultants bearing sparkling new toys?

In PwC 2019 State of the Internal Audit Profession Study, they are advising internal auditors to adopt approaches and practices with which I disagree.

 

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Are we taking risk, making a decision, or gambling?

We gamble all the time, but we don’t think of it that way. We think we are making decisions, not gambling – and often don’t see it as taking risk either.

 

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Federal Court of Appeal holds Canada Revenue Agency does not have the power to compel oral interviews during audit

The Canada Revenue Agency (CRA) has increasingly requested oral interviews during audits, particularly in transfer pricing audits. In Minister of National Revenue v. Cameco Corporation, the CRA sought an order compelling employees of the Cameco group to attend oral interviews. The decision of the Federal Court of Appeal (FCA) will be welcomed by taxpayers as it holds that an auditor does not have the power to compel such interviews.

 

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Assessing the effectiveness of your risk management program

The IIA has published a new Practice Guide, Assessing the Risk Management Process. In IIA-speak, this is recommended but not mandatory guidance for its members.

 

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The wonder and joy of internal auditing

More than 17 years ago, The IIA’s magazine published an article of mine, The new age of internal auditing. I made some provocative comments, including:

 

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Talking about software for GRC

The Open Compliance and Ethics Group (OCEG) recently published the 2019 OCEG GRC Technology Strategy Report.

 

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Advice for audit committees and oversight of external auditor

While it is clear that the role of the external auditor is important and that the audit committee is charged with their oversight, it is unusual to see advice on how that oversight should be discharged.

 

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