Audits | SKC

Audits

In today's volatile business environment, organizations face a wide array of complex business risks. These risks come in the form of many issues: regulatory compliance, litigation, competitive market pressures, changing technology, investor demands, corporate governance, business ethics, and accountability. India's integration into the global markets has brought with it additional challenges of quality and optimum productivity and efficiency. How clients manage these risks is critical to the future of their organizations.

SKC’s Internal Audit Services
 

We assist our clients to effectively manage business risks by providing a full spectrum of corporate governance, risk management, and internal audit services. These services are tailored to meet clients’ individual needs, and provide effective support to management in meeting the challenges and opportunities presented by today's complex business environment. Our services enable clients to effectively co-ordinate their key growth, quality and operational challenges - and working in partnership with us, clients have the benefits of SKC's experienced, objective, and industry-grounded viewpoints. SKC's Internal Audit Services offer a wide range of tailored services and products to enhance corporate governance, manage business risk, provide assurance on control effectiveness, and support you in achieving the organization's objectives. SKC's Internal Audit Services include:

  • Corporate Governance - Review and Assessment
  • Outsourcing or Co-sourcing of Internal Audit
  • SKC IADPR (Internal Audit Department’s Delivery Performance Review)
  • Establishing an Internal Audit Function
  • Accounting procedures manual
  • Reconciliation problem resolution
  • Corporate Governance - Review and Assessment Imperative for Organizational Success and Prosperity

Over the last decade regulators, institutional investors, and the media have bombarded companies, both public and private, with requests for enhancing governance standards. Regular corporate failures and highly publicized “scandals” will ensure that the governance demands on business leaders will increase and become more onerous. The minimum standards for corporate governance are ever increasing and companies with strong corporate governance structures and policies are valued more among investors and enjoy better terms in trade. Simply stated, good corporate governance makes very good business sense.

Self-Appraisal The Board is accountable for ensuring that the organization has a robust risk assessment framework and adequate and effective internal control systems, designed to manage these risks and provide reasonable assurance that the organization’s objectives are being achieved. Although in practice this function is normally delegated to management, it in no way reduces the Board’s ultimate responsibility. Board level accountability and performance expectations from stakeholders are ever increasing, and director remunerations and reappointments are increasingly based on individual contribution to a company’s performance. It is therefore essential that boards evaluate their approach to fulfilling their roles and responsibilities so that continuous improvement is achieved and value is added to the operations of the organization.

Our Internal audit methodology has an operational and business risk focus and allows for a flexible and high quality response to address Audit Committee and management concerns. The risk assessment process is fundamental to our Internal Audit approach, which requires business areas to become formally accountable for internal control assurance by conducting self-assessment of their control infrastructure. The Internal Audit thus becomes a key component of the client organization's approach to corporate governance and business risk management.

Establishing an Internal Audit Function

The Approach Developing an effective Internal Audit capability can be demanding on management’s time, and requires the considered professional wisdom on a wide range of issues to ensure maximum potential. The increasing expectations from Internal Audit as well as the changing focus of Internal Audit from transaction-based to risk based is setting the pitch for changes in the process of setting up an internal audit function. We will help plan for and resolve all these issues, drawing on our in-depth knowledge of ‘best practice’ in structuring and organizing effective Internal Audit functions. We can source SKC Internal Audit professionals who have worked with a wide variety of organizations throughout the private and public sectors by helping them assess the costs and benefits of Internal Audit functions.

We have also assisted in the development of Internal Audit functions, thereby leaving management free to concentrate on the key issues facing their businesses. Key elements of our approach:

Determining the Audit Committee's and management's requirements and expectations;

Assessing the business needs in comparison to the management’s requirements – Risk profiling;

Agreeing to communication protocols;

Interlinking the departmental works for sake of ensuring independent reporting;

Developing detailed Internal Audit plans Defining working practices, including the Internal Audit methodology / formats, and audit software Determining the core skills required in recruiting the right staff for the function Establishing accountability and quality control standards

Accounting Procedures Manual.

An accounting procedures manual enhances management’s efforts to: Monitor performance against established procedures. Help ensure policies and procedures are consistently applied Improve efficiency in training employees during periods of transition Update procedural changes by reorganization or the implementation of a new information system . How we can help SKC recognizes that despite the management’s desire to develop best practice Accounting Procedures, and despite the presence of individuals within the company who can codify the procedures, there is a growing need to professionalize the practices to adhere to the international norms and practices, and to work as systematically as possible on established rules and practices acceptable to the investors and to governing authorities. In response, we have created a service that allows an organization to outsource this task. We assist in updating or compiling new documentation of the sequence and details of key accounting function procedures.

Our approach SKC uses a systematic process for documenting procedures. This process includes: Assessing the business needs of client organization; Outlining the broad structure for transaction process and information flow and then Interviewing staff in key functional areas; Conducting a walk-through to validate transaction processes; Observing users performing key procedures; For each activity, we record: The position responsible for the activity The review process and the position responsible for sign-off Required inputs for the procedure Desired outputs with formats The exception handling process After documenting the workflow and key activities for each process, SKC develops a key reference manual. The manual includes narratives, matrix tables to clarify interconnected activities, and flow charts for selected procedures. Supporting exhibits may include sample documents, a master calendar of critical deadlines etc.

You also receive an electronic copy of the manual, which provides a mechanism for you to update procedures on an ongoing basis. Normally this manual is supplemented with and internal audit manual (on request). We also provide a training session for the management wherein they are trained to look for check points and alert points which would indicate system violation to them leading to recourse to corrective actions; Naturally we also provide internal audit services thereby giving complete peace of mind to our clients enabling them to focus on their core competence functions