Developing internal audit in uncertain times - one view of a changing approach to audit

1. developing internal audit in uncertain times - one view of a changing approach to audit Peter Farrow Audit Services & Risk Management Manager Sandwell MBC & West Midlands Fire Service

3. opportunities/threats? commercialising the audit team armchair auditors adapting our role

4. threats/opportunities? defunct CAA/audit commission FMSiS/Contactpoint gone cuts - smaller teams shared services outsourcing tendering partnering management or staff buy out/mutual pathfinder combined internal/external audit (cut price audit package)

5. commercialising the team make the jump � immerse in the wider business an integral part of the business/sniff test/(financial ability v attitude) softer skills/relationship building/get out of the office/confidence �if you�re part of the business, then your part of the business � if you�re just a necessary evil, then you might as well be outsourced�

6. skills and attributes of commerciality keen mind (for acquiring knowledge of the wider business) strong interpersonal skills (in particular self-confidence and communication skills) willingness to challenge the status quo (and to be challenged in turn)

7. army of armchair auditors how interact with internal audit detailed requirements (see over) nominated contact person include internal audit on website? make available plans & reports? promote audit committee? training?

8. local spending data guidance �what�s the most you can publish, not what�s the least you have to� from 1 January 2011 (go back to April 2010) dedicated website page �500 � could publish all spending monthly � within 30 days in a way that can be re-used (not pdf) mash ups etc. body/date/transaction no./amount/supplier/expense area/service category

9. adapting our role build relationships with those that remain doing more with less grant certification contactpoint � similar FMSiS � new standard due Summer 2011 NFI � continued��. increase in fraud investigations counterfraud activities vfm

10. adapting our role fast changing (possibly reduced) control environment auditing shared services more partnerships/delivery vehicles more time on risk analysis, identifying �killer risks� -managers more interested in outcome shift focus from justifying what we are not testing (or minimising) to justify why testing an area shorter reviews increased control risk self assessment using other sources of assurance

11. adapting our role new areas (i.e. environment, carbon reduction, change management) new relationships with audit commission successor CIPFA�s role of the head of audit (governance, training etc.) moving from: controls assurance based on risk based internal audit plans, to assurance on the effectiveness of risk management plus controls assurance