Effective Auditing For Corporates

Author: Joe Oringel
Publication Year: 2012
Category: Auditing

Introduction

“Effective Auditing For Corporates” by Joe Oringel is a comprehensive guide designed to assist corporate auditors in enhancing auditing practices. The book emphasizes modern approaches to auditing with a focus on leveraging technology, risk management, internal controls, and providing value beyond traditional auditing practices. Oringel’s insights cater to both novice auditors and seasoned professionals seeking to refine their skills and methodologies.

Chapter 1: Understanding the Auditing Landscape

Oringel opens the book by outlining the evolving landscape of corporate auditing. He points out that traditional auditing approaches are no longer sufficient in the dynamic corporate environment. The author stresses the urgency for auditors to adopt a forward-looking perspective rather than merely reviewing past financial records.

Action point: Stay current with industry trends by subscribing to relevant auditing and financial periodicals. Regularly attend professional development seminars on modern auditing techniques.

Chapter 2: Integrating Technology in Audits

Oringel delves into the importance of integrating advanced technology in the audit process. He emphasizes the use of data analytics and specialized audit software to streamline investigations and enhance the accuracy of audit reports.

Example: A case study in the book illustrates a retail corporation adopting data analytics tools to detect discrepancies in inventory management, leading to the discovery of over $1 million in inventory shrinkage.

Action point: Invest in audit software like ACL Analytics or IDEA to facilitate data analysis. Train your audit team on these tools to perform more effective data scrutiny.

Chapter 3: Enhancing Risk Management

Risk management is a pivotal theme in the book. Oringel explains that proactive risk management identifies potential issues before they become significant problems. He introduces risk-based auditing as an approach that aligns the audit focus with an organization’s risk profile.

Example: Oringel references a healthcare organization that adopted risk-based auditing to identify compliance risks. This approach led to the early detection of regulatory breaches, saving the organization from potential fines.

Action point: Develop a risk management framework that includes regular risk assessments and integrates risk-based auditing into your audit plans.

Chapter 4: Strengthening Internal Controls

Oringel underscores the significance of internal controls in mitigating risks and ensuring operational efficiency. He provides detailed guidance on evaluating and improving internal controls within an organization.

Example: The book describes a financial services firm that restructured its internal control procedures following an extensive audit. This restructuring resulted in reduced fraud incidents and improved regulatory compliance.

Action point: Conduct a thorough review of your organization’s internal controls. Based on the outcomes, implement enhancements to address identified weaknesses.

Chapter 5: Audit Planning and Execution

The author offers an in-depth discussion on effective audit planning and execution. He outlines the steps involved in creating an audit plan, including defining objectives, assessing risks, and allocating resources effectively.

Example: Oringel presents an example of a manufacturing company that improved audit efficiency by adopting a structured audit plan. This change led to the timely completion of audits and identification of operational inefficiencies.

Action point: Develop a detailed audit plan at the beginning of each audit cycle. Include timelines, resource allocations, and clear objectives to ensure a focused and efficient audit process.

Chapter 6: Communicating Audit Findings

Effective communication of audit findings is critical to the utility of the audit process. Oringel highlights best practices for presenting audit results to stakeholders, including senior management and audit committees.

Example: The book illustrates how a technology firm’s audit team enhanced report clarity and impact by using visual aids, such as charts and graphs, to highlight key findings.

Action point: Use visualization tools to present audit findings. Ensure that your reports are clear, concise, and tailored to the audience’s level of understanding.

Chapter 7: Continuous Improvement and Training

Oringel emphasizes the importance of continuous improvement in the auditing profession. He advises auditors to seek ongoing education and training to stay abreast of evolving standards and techniques.

Example: A case shared in the book describes an audit team that regularly attended professional training, resulting in improved audit quality and innovative audit practices.

Action point: Encourage your audit team to participate in continuous learning opportunities such as workshops, webinars, and professional certifications.

Chapter 8: Leveraging Internal and External Audit Synergies

The interaction between internal and external auditors can significantly impact audit effectiveness. Oringel discusses strategies for fostering productive collaboration between these groups to enhance overall audit outcomes.

Example: The book details a scenario in which an internal audit team collaborated closely with external auditors, leading to a more comprehensive understanding of financial risks and stronger audit conclusions.

Action point: Facilitate regular meetings between internal and external auditors to share insights and coordinate efforts for a more integrated audit approach.

Chapter 9: Legal and Ethical Considerations

Legal and ethical issues are an integral part of the auditing function. Oringel provides guidance on maintaining ethical standards and complying with relevant legal requirements during audits.

Example: Oringel describes a situation where an auditor uncovered financial irregularities but needed to navigate complex legal considerations to report the findings appropriately without breaching confidentiality agreements.

Action point: Educate your audit team on legal requirements and ethical standards through regular training sessions and establish a clear protocol for handling ethical dilemmas.

Chapter 10: Value-Adding Audits

Beyond compliance, audits can add significant value to organizations. Oringel discusses how auditors can provide actionable insights that contribute to business improvement and strategic decision-making.

Example: The book illustrates how an audit team’s recommendations on process improvements led to cost savings and efficiency gains for a large logistics company.

Action point: Identify areas where the audit can provide strategic and operational insights. Present findings that go beyond compliance to offer tangible business improvement suggestions.

Conclusion

Joe Oringel’s “Effective Auditing For Corporates” is an essential resource for auditors seeking to enhance their practice in today’s complex corporate environment. The book’s actionable insights and real-world examples make it a valuable guide for improving audit effectiveness, integrating technology, and adding value to organizations.

Action Point Summary

By following these recommendations, auditors can ensure that they remain relevant and effective in their roles, ultimately contributing to their organization’s success and resilience.