Benefits of outsourcing Internal Audit
As Credit Unions have continued to grow and develop their Governance, Risk and Compliance systems, the risk emphasis has started to change from failing to meet compliance requirements to failing to meet strategic targets. Through our experience in the sector WDA have developed a value added approach to role of Internal Audit. We are committed to re-positioning of the role of internal audit from that of a ‘tick the box’ compliance function to that of a constructive and valued function within the organisation.
Benefits to your Credit Union in outsourcing your Internal Audit Function
- Internal Audit Function designed and tailored to adhere to the Credit Union Act and handbook
- A Reporting Framework that’s been developed to deliver practical and relevant information to Management team and Board of Directors.
- Internal Auditors with extensive credit union experience in Risk, Compliance, Internal Audit & Governance.
- Fixed costs – agreed in advance (no hidden extras)
- Continuity in delivery of service – no succession issues through staff rotation/cessation.
- No training of staff required
- No employment law or HR issues
- No concerns with regard to Internal Audit Functions in a PRISM inspection
Step 1 – Meet with the CU to understand their needs. Meet with the Audit Committee, CEO & Operations Manager to identify perceived areas of weakness and challenges facing the CU.
Step 2 – Define Objectives: The principal objective of all work completed by WDA within the Internal Audit process will be to provide independent internal oversight to the CU and to evaluate the effectiveness of the Credit Union’s Risk Management, Internal Controls and Governance Processes, and make recommendations for improvement.
Step 3 – Scope & Charter: As required under the Act and Handbook, the CU must prepare an Internal Audit Charter. WDA will assist in the preparation of this document, which will clearly define the activities of the Internal Audit Function within the CU and the scope of those activities.
Step 4 – Detailed Internal Audit Plan: A detailed internal audit plan will be prepared by WDA for signature and approval by the CEO, Chairman of the Board or Audit Committee, External Auditor and Internal Auditor.
Step 5 – Our Audit Programmes have been specifically designed to incorporate the Institute of Internal Auditors professional standards and the CU Handbook. Under the WDA IAF process we are always cognisant of Risk, therefore we link applicable risks within the Risk Register to applicable audit tests to ensure 100% coverage in our risk based audit approach.
Step 6 – WDA discuss all the findings and recommendations for improvements with the management team of the Credit Union and seek their feedback prior to finalisation of the final internal audit report. A final audit report is issued for consideration by the Audit Committee or Board of Directors. The Reporting framework includes
• Detail report of findings
• Ranked recommendations schedule
• Audit Plan
• Open Audit Recommendations including Board Response and Action plans
We produce a comprehensive tender document for the Boards consideration, which sets-out a full schedule of tasks that must be completed within the engagement. This will ensure there is absolutely no ambiguity to the scope of the engagement.
All professional fees are agreed between WDA and the Credit Union prior to the commencement of the engagement at a mutually agreeable level, so there is no hidden surprises or overruns.
Should you require additional information or a consultation please call us on 01 6771411 or submit your details below: