Effective communication in Internal Audit

Doron Rozenblum-MBA, CIA, CISA, CRISC, CRMA

The Institute of Internal Auditors – Director

IIA Israel-VP

Kreston IL Group - Managing Partner

A seat at the table

Do we really have one?

Deliverables

Expectations

Internal Audit Mission

IIA Internal Audit Principals

Provide risk based assurance on what matters

Provide risk based assurance Which risks matter?

• Risks to the achievement of objectives:• Risks to the objectives of the

enterprise• Risks that matter to the board, CEO,

and executive team.

Risks that matters to the board and executives

Risks to:• Revenue targets• Earnings targets• Market share• Reputation• Major projects• -----

Enterprise risk-based auditing

• Enterprise risk-based auditing connects the risk profile to the internal audit plan.

• Designed to address the risks that matter.

• Dynamic and on going risk assessment is needed (updated as risks change).

As stated in The IIA Practice Advisory 2060-2

Relationship with the Audit Committee, “In large

part the overall effectiveness of the CAE and audit

committee relationship will revolve around the

communication between the parties.

Today’s audit committees expect a high level of

open and candid communications. If the CAE is to

be viewed as a trusted advisor by the committee,

communications is the key element.”

IIA Practice Advisory 2060-2

What is an effective audit report?

What is an effective audit report?

• Communicates effectively• Gets the message across, to the speed-

reading executive.• Eliminates the unnecessary, to focus

attention on the essential• No more than 2 pages

Just in time advice

Just in time advice

Just in time advice

• When do stakeholders need our assurance, advice and insight?

• When do unacceptable risks need to be addressed?

• Is the traditional audit report still the best communication?

Please ask yourself:

What NOT to do?

• Write what you want to say rather than what they need to hear.

• Use the audit report as documentation.• Waste time and money (yours and theirs)• Bury value in a mountain of waste.

Do NOT :

What is an effective audit report?

• A communication that is read and acted upon, right away.

A communication that matters: says what stakeholders need to know and no

more.

What is an effective audit report?

Top priorities for internal Audit in a changing environment

or simply:What can we do better in 2018?

• Deliver short, insightful, layered reports with summaries rather than narratives.

• Tell stakeholders what they need to know, why they need to know it, and what they should do about it.

• Communicate in business terms (effect on business objectives).

• Use visualization tools, infographics, heat maps, bubble charts, to convey findings and insights.

• New modes of reporting are essential to increasing Internal Audit’s impact and influence.

• Timely reporting.

What can we do better in 2018?

Questions?

Doron Rozenblum-Managing PartnerMBA, CIA, CISA, CRISC, CRMA

Kreston IL Group

Kreston- EYR – Consulting, Control & Risk Management

Tel: +97236130632

Fax:+97236130637

Mobile:+972508330811

www.eyr.co.il | doron@eyr.co.il

The information contained herein is of a general nature and is not intended to address the circumstances of anyparticular individual or entity. Although we endeavor to provide accurate and timely information, there can be noguarantee that such information is accurate as of the date it is received or that it will continue to be accurate inthe future. No one should act on such information without appropriate professional advice after a thoroughexamination of the particular situation.

Doron Rozenblum is the Vice President of The Institute of Internal Auditors in Israel. In this role, Doron provides direction for The IIA’s Israel strategic plan, conferences and training. Doron is also responsible for global relations with the IIA and IIA institutes around the globe. Doron’s service as an active volunteer with The IIA includes roles as committee member and currently Doron is 2018-2019 Director of the IIA Global Board of Directors. Doron is the managing partner of Kreston-Ezra Yehuda-Rozenblum leading the Risk Advisory Services practice of Kreston IL Group. He is a Certified Internal Auditor (CIA) and holds the Certificate in Risk Management Assurance (CRMA). He has nearly 25 years of experience in internal audit, enterprise risk assessment, and control design and assessment, and specializes in helping organizations understand and assess risks within their operations, assessing the design of processes and controls, and providing tailored solutions to enhance internal audit effectiveness and value.Doron has a bachelor’s degree in Accounting and a Master of Business Administration degree from Manchester University.

People do business with people they know, like and trust

Doron Rozenblum, MBA, CIA, CISA, CRISC, CRMA

Managing Partner, Kreston EYRM: +972 50 8330811 E: doron@eyr.co.il

About Kreston IL Group

We provide a varied array of professional services for most industries, different risk models and understand the issues affecting growing, internationally-active organisations. We offer a professional, customised and flexible approach based on requirements.

Internal Audit

Internal Audit aims at protecting

company value, improving

performance, increasing operating

efficiency and enhancing shareholder

value. Our Internal Audit and risk

management department serves

government offices and corporations,

statutory corporations, public

corporations, non-profit organizations

and municipal corporations.

Cyber and Security Risk Advisory

Services

Cyber & Security is a global threat

and we at Kreston IL assist

executives prevail in constantly

evolving and increasingly

complicated Cyber & Security

environment.

About Kreston IL Group

Audit and Assurance

With many years of profound and quality

audit, this is one of the core services of

the firm.

International and local clients of all

sectors, ranging from large corporations

to small and medium sized companies

enjoy our comprehensive audit services,

under US GAAP, IFRS and Israeli

GAAP.

Tax Services

When operating across a range of

global markets, it takes time and

dedication to stay on top of the ever-

increasing complexity of tax rules

around the world. We specialize in working with organizations that require in-depth, up-to-date knowledge of local rules allied to seamless co-operation between tax professionals in different jurisdictions.

About Kreston IL Group

Economical and Strategic Consulting Services

Specializing in economic-strategic planning and business

development for companies and organizations, our services grant

comprehensive solutions to the range of risks and opportunities

facing organizations in Israeli and global markets, we also deal

with Presenting Expert opinions in legal proceedings.

Risk Management system Solutions

Kreston IL A2Z helps organizations characterize, establish and

implement risk management systems. In order to help

organizations manage and mitigate risks to which they are

exposed to, Kreston IL A2Z provides services and solutions that

rely on its professionals’ accumulated experience in various risk

areas (operational and IT risks, credit and market risks, financial

risks and others) and tailored international methodologies such as

COSO ERM and COBIT.