Internal Audit

 

The recent collapse of several multi-nationals as a direct result of control deficiencies and governance issues has raised the importance of internal auditing and obligating / binding / compelling legislation.  Internal audit and risk management is meant to direct the attention of executives and employees toward risks that are inherent to the functioning of the organization, and toward the need to improve management control systems that will minimize exposure to key risks.

 

 

Our Internal Audit Department

The department offers a variety of internal audit and risk management services on an outsourcing basis to private and public companies, financial bodies, foundations, and NGOs.

 

We have a team of experts with a variety of areas of specialty: accounting, economics, law, industrial management, information systems, and more.  They have a broad business perspective and in-depth experience.

 

The audit department maintains the highest professional standards, performs internal reviews, has strict quality control, delivers on time, pushes for excellent results, and believes that the clients’ interests always come first.

 

 

The Audit Department’s Services

 

Risk assessment surveys

Risks within an organization and risks within its environment can impact an organization’s activities, and its operational and financial results.  Through the preparation of the survey we follow risk management methodologies to find and analyze organizational, operational, and financial weak spots that expose the company to the most amount of risk.

 

Fraud and embezzlement surveys

A major risk source in any organization is the possibility of error, embezzlement, or fraud.  This risk will usually occur in issues\subjects and process of high exposure or high risk.  Our department will find and analyze the problematic risk areas that have the potential for major error, embezzlement, or fraud in your organization.  The level of risk will be assessed and we will provide recommendations to prevent or hedge the risk.

 

Information systems audits

We provide consulting services to IT managers, consulting on information security, information systems audits, business continuity and disaster recovery planning, automated data analysis and improvement, computer-based data analysis, interface integrity audits, and more.  All our surveys are done by IS professional who are Certified Information Systems Auditors.

 

Subsidiary and affiliate audits in Israel and abroad

This type of audit ensures that subsidiaries and affiliates: implement policies and procedures, have proper governance, adhere to rules and regulations, follow appropriate work standards, hold proper and thorough internal audits, and keep proper and thorough reporting to the parent company.

 

 

 
The challenges we can help you face:

 

The recent collapse of several multi-nationals as a direct result of control deficiencies and governance issues has raised the importance of internal auditing and relevant legislation. 

 

Internal audit and risk management is meant to direct the attention of executives and employees toward risks that are inherent to the functioning of the organization, and toward the need to improve management control systems that will minimize exposure to key risks. 

 

Analyzing the risks and making recommendations for new management control systems will set the organization on a productive, efficient, and ethical path forward, and will safeguard the organization’s funds and other assets.

 

The managerial control systems include such tools as: creating the right organizational culture, putting policies and regulations in place, the proper assignment of responsibilities and accountabilities, creating checks and balances, writing and updating provisions\instructions and procedures, creating computer processes that follow the necessary rules.

 
 
The main steps of an internal audit:

 

  • Performing a risk assessment survey to develop a multi-year plan.

  • Performing an audit plan and an initial survey of the specific auditing issues/themes.

  • Fieldwork and statistical sampling work.

  • Writing a draft of the report and getting feedback from the constituents.

  • Writing the final report that includes all recommended changes in managerial controls.

  • Following up on the implementation of recommendations by the reviewed corporation.

 

 

To determine the audit targets that the annual audit plan will be comprised of, we perform a risk survey that takes into consideration the short and long term goals and objectives of the organization, as well as the positive and negative trends in the organization’s environment. 

 

Based on the analysis of the goals and the trends in the environment, the auditor estimates the areas in which changes in managerial controls can contribute to the minimization of risk and contribute to the effective, efficient, and ethical achievement of the client’s goals.

 

 

 

 

Internal audit – the law in Israel:

 

 

The role of an internal auditor in public entities is explicitly determined in the Internal Audit Act of 1992.  Financial organizations (banks and insurance companies), public companies, and other organizations are required to appoint internal auditor as determined in the legislation.

 

 

The Internal Audit Statute of 1992 states that any internal auditor is required to have a bachelor’s degree, or to be a certified accountant, or a lawyer.