How does the audit add value to the organization ? This presentation will take you through the step by step process....

1. Value Adding Internal Audit

3. Excerpts from ‘Internal Auditor’ Oct 2000 “ My first impression on internal auditing was totally wrong. I thought its only purpose was to catch management making mistakes, and I looked at it as intrusive. But I’m living proof that internal auditors can affect how they’re perceived. In my first five to eight years at Bon Secours Health System, I began to learn what can happen if you use an internal audit program effectively. My appreciation and awareness of the internal audit profession has only grown over time. Internal Auditors are a valuable part of any complex organisation, THEY ARE ONE OF THE MOST IMPORTANT COMPONENTS OF AN ORGANISATION CRITICAL TO SUCCESS….” Chris Carney, Chief Executive Officer, Bon Secours Health Systems Inc.

4. “ We are what we repeatedly do. Excellence, then, is not an act but a habit” Philosoper Aristotle Internal Audit Practices

5. What is habit? Habit is a result of our thoughts and repeated actions influenced by our desire, our knowledge and skill. Internal Audit Practices

6. ” Sow a thought, a right thought, reap an action, reap a habit - sow a habit, reap a character - reap the destiny of excellence”. Route Map: Thoughts --> Words --> Actions --> Habits --> Character --> Destiny Internal Audit Practices

7. Internal Audit Practices also need to follow the same route Thoughts - Be convinced that IA is value adding Words - Commit to Management/colleagues/Profession Actions - Practice, share, develop Habits - Repeat & Repeat Destiny of Excellence - Stand out & reach excellence Internal Audit Practices

9. Internal Audit redefined (by the Institute of Internal Auditors, Inc, USA – the International Body promoting the profession of Internal Auditing) “ Internal Auditing is an Independent and Objective Assurance and Consulting Activity that is Guided by a Philosophy of Adding Value to Improve the Operations of the Organisation. It Assists an Organisation in Accomplishing the Objectives by Bringing a Systematic and Disciplined Approach to Evaluate and Improve the Effectiveness of the Organisation’s Risk Management, Control, and Governing Processes.”

14. Our Vision “ PROVIDE WORLD CLASS INTERNAL AUDIT SERVICES”

17. Quality Policy "WE, AT MANAGEMENT AUDIT DIVISION OF E I D PARRY (INDIA) LIMITED ARE COMMITTED TO PROVIDE TOTAL CUSTOMER SATISFACTION THROUGH OUR QUALITY SERVICES BY CONTINUOUS UPGRADATION OF ACTIVITIES, KNOWLEDGE AND SKILLS”

18. 'Value Addition & Quality' (Management Audit Division's Motto) Value Addition & Quality" are customer focused concepts and meant to satisfy the customers. For the Management Audit Service provider, there are more than one customer. Operating Management, Business Group Management, Corporate Executive Management, Board Audit Sub-Committee and Statutory Auditors as customers of the Management Audit Division do expect a value added and quality service from the Internal Auditors.

19. The term 'Value' can be viewed from different dimensions. Adding value to the 'bottom line' through Audit recommendations that save cost or augment revenue is of prime importance. Audit Contributions can also add value through suggestions for improvements in the Business Processes or through putting in place a sound and effective Internal Control systems based on proper risk assessment which will lead to achieving the Objectives of the operating Units. 'Value Addition & Quality' (Management Audit Division's Motto)

20. The term 'Quality' refers to the 3 Ps. That is People, Process and the Product. The quality of people employed in the Management Audit Function, the quality of various Audit Processes that are being followed by them and the quality of the final product delivered (viz, the Audit Report) by them to their customers determines the success of the Division. Achievement of this Value Addition and Quality is facilitated by a proactive approach to Audit and by exhibiting high standard of professionalism by the Members of the Management Audit Team in their work. 'Value Addition & Quality' (Management Audit Division's Motto )

43. Quality Audit Systems - ISO 9001 : 2000 Internal Audit Practices

44. Internal Audit Practices

45. Internal Audit Practices

46. Internal Audit Practices

47. Internal Audit Practices

48. Consultancy Focus (Technical Audit as an effective Wheel) Partnership with Customers Support / Guidance from External Specialists MEASURE BENEFIT EXPLORE, STUDY & RECOMMEND FACILITATE IMPLEMENTATION INNOVATE CREATE AWARENESS

49. Assurance Focus (General / Operational Audit Wheel) Best Practices / Manuals Standards & Audit Tools Provide Education & training to people Review Risks, Controls & Governing Processes Provide Continuous Assurance to Management Create Awareness and facilitate putting systems & controls Facilitate Self Audits, Review effectiveness

50. Systems Focus Information Systems Audit & Control Global Best Practices ‘ COBIT’, IS Standards, ‘CAATS’ Review IS Policies on Security / Controls & Practices Review Risks, Controls & recommended measures to address control weaknesses Continuous feedback to Management on IS Status Create Awareness and facilitate institutionalising IS Control Systems Review IS Resource Utilisation & facilitate optimising IS Potentials

53. CUSTOMER CORPORATE EXECUTIVE MANAGEMENT EXPECTATIONS PROPER RESOURCE UTILISATION ARE CORPORATE GUIDELINES EFFECTIVELY FOLLOWED STATUTORY COMPLIANCE ASSURANCE THAT THINGS ARE IN ORDER Audit Customers & Their Expectations

54. CUSTOMER BOARD AUDIT SUB-COMMITTEE STATUTORY AUDITORS EXPECTATIONS CORPORATE GOVERNANCE REQUIREMENTS EFFECTIVENESS OF AUDIT FUNCTION SCOPE & COVERAGE OF INTERNAL AUDIT SYSTEM COMMENSURATE WITH SIZE OF BUSINESS Audit Customers & Their Expectations

56. “ Management Audit the Driving Force” Visible Top Management Support Effective Business Group Management Support Co-operative Operating Team Efficient & Contributing Suport Audit Teams Structured Audit Administration Well informed Audit Sub-Committee Management Audit – the driving force

70. Thank You