Ms. Jeanette Franzel, Board Member of the Public Company Accounting Oversight Board (PCAOB), joined the MAPI Financial Council meeting on November 3 to discuss the focus of the PCAOB and to answer members' most pressing questions about the role of the Board.
A Council member recapped a presentation she did at the 2016 Internal Audit Data Analytics Forum in which she and several other attendees described the dashboards they use to display the results of data analytics that had been performed.
Internal Audit plays a lead role in creating a well-controlled environment. Two members discussed how they have created a proactive internal controls culture. One member indicated that his IA function created a control universe with management.
Reporting to the Audit Committee about the activities of internal audit is a key responsibility for chief audit executives. Three members who have different approaches to the level of detail they report shared their approaches.
Two Council members and one of the member's team members led a discussion on how audits of third parties can involve a review of the governance of those relationships. Also discussed was how members conduct third party risk assessments.
An alternate for a Council member reviewed the various vendor audits his IA department has performed in China. His company produces a product with significant components that are manufactured by third party vendors in China.
At the Council I Spring Meeting, two members gave an overview of how their enterprise risk management is integrated with the business strategy. At one member's company, the business units start with the top 30 risks and consider what other risks could derail their business plans.
At the Council I meeting, a member and an alternate for a Council member, each gave an in depth review of how risk assessments are conducted at their respective companies. At the member's company a live discuss of the risk committee occurs to score risks.