INTERNAL AUDITING
What is Internal Auditing?
Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. - The Institue of Internal Auditors
Why Internal Auditing?
With the current growth & acceleration in innovations, including in information & communications technology (ICT) & business model innovations, markets & industries are being disrupted providing great risks &/or opportunities to companies who know how to navigate & take advantage of the current market environment. Internal Auditing is the entity’s very valued business partner providing a very rich & wide variety of assurance & consulting activities to help entities continuously improve & reach its objectives & goals in the midst of the ceaseless & speedy changes in market conditions.
“A prudent person foresees the danger ahead and takes precautions; the simpleton goes blindly on and suffers the consequences.” - King Solomon, Son of King David
Some Specific Client Needs:
"How can I ensure my company is following adequate, effective & efficient policies and avoiding costly mistakes?"
"How can I have reasonable assurance that organizational objectives and goals in operations, compliance, financial & reporting will be met?"
Some Benefits of Internal Auditing:
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Identifies inefficiencies, wastage and weaknesses in operations.
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Ensures compliance with regulations and internal policies.
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Prevents fraud and financial & non-financial reporting misstatements.
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Improves internal controls, risk management, governance and accountability.
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Improves safeguarding of valuable business assets.
Our Internal Auditing Methodology is Risk-Based
Our Risk-Based Audit Methodology (RBAM) focuses on identifying and assessing risks to prioritize audit efforts where they are most needed. Unlike traditional auditing methods that might examine all processes or areas equally, a risk-based approach tailors the audit plan to address higher-risk areas with the greatest potential impact on the organization.
Advantages of Our Risk-Based Audit Methodology | THE CFBS ADVANTAGE.
Our Internal Auditing Services
Why Choose Us?
We are committed to driving tangible results for your business. With specialized &/or expert knowledge, skills, competence & experience in Internal Auditing, our proven track record and dedication to excellence make us the ideal partner for your business needs & requirements.
Following are three (3) useful actual STAR Scenarios allowing us to provide clear, concise examples of our expertise, skills, competence & knowledge in action. It demonstrates our problem-solving abilities, highlights our strategic approach, and emphasizes the tangible outcomes of our work. By focusing on real results, we can effectively show you how we turn challenges into opportunities and drive success for our clients. Whether you're looking for increased profits, improved efficiency, risk management, internal controls & business processes, or innovative solutions, the STAR method helps you understand exactly how we deliver value. You will see more of these as you continue to browse our services and get to know The CFBS Advantage.
In these three (3) STAR Scenarios we demonstrated the following skills, among others:
Risk Assessment Skills
Internal Controls Evaluation
Audit Planning & Execution
Sampling Techniques
Report Writing & Communication Skills
Teamwork Skills
Leadership Skills
Independence & Objectivity
Analytical & Critical Thinking
Attention to Details
Tax & regulatory knowledge
Tax Planning & Strategy
Accounting Principles & Standards
Client Management
Project Management
Data Analytics
STAR Scenario #1: Display Rental Business Process, Operations & Compliance Audit
SITUATION:
Need to conduct a Display Rental Audit Engagement for a multinational company.
TASK:
Conduct an independent & objective assurance on the company’s display rental across the Philippines.
ACTION:
1) Based on risk assessments conducted, we need to immediately initiate surprise ocular inspections of display rentals in supermarkets, store chains and drugstores among others starting with small samples then going nationwide because of initial findings & risks identified, deploying teams of auditors & merchandisers;
2) Coordinated with company’s distribution division for implementation of audit plan/ strategies and enlisted cooperation of third party merchandising contractors to ensure integrity of findings;
3) Conducted business process review of the end-to-end processes, risk-control assessments, analytical & substantive tests accordingly adjusting scope and audit procedures focusing on areas with greater risk exposures.
RESULTS:
1) Uncovered annual exposure/losses of around P30M++ of non-existing display rentals paid leading to recommendations & implementations of appropriate & fit for purpose internal controls and control activities to stop & deter the annual exposure/losses;
2) Uncovered annual tax savings of about P30M+/- by recommending & implementing appropriate tax & accounting treatments & documentations needed from customer-display rental providers. This resulted to a creation of a tax team for this purpose.
3) Provided reasonable business process assurance to the nationwide P500M++ annual display rentals of the company which was subsequently increased.
STAR Scenario #2: Toll Mfg. Business Process, Operations & Compliance Audit
SITUATION:
Need to conduct a Toll Manufacturing Audit for a multinational company.
TASK:
Audit Toll Manufacturers of the multinational company.
ACTION:
1) Reviewed the manufacturing production process including batch production documents;
2) Reviewed Toll Manufacturing Contracts & determined compliance of each toll manufacturer;
3) Documented the overview of the whole toll manufacturing process and conducted risk-control assessments;
4) Conducted substantive control tests on high risk areas within the company and within toll manufacturers.
5) Successfully managed and coordinated audit activities within the company and with toll manufacturers peacefully and harmoniously.
RESULTS:
1) Uncovered a high risk exposure on the brand equity of a Billionaire Brand due to lapses of quality controls in a toll manufacturer which could damage the brands reputation & value. The risks were immediately address by implementing the designed quality control checks strictly;
2) Uncovered product production quantity demands that were not significantly met by a toll manufacturer. This led to discussions with top management regarding strategy of ALL-IN production in the company and current capacity constraints in current manufacturing network;
3) Uncovered non-value adding activities such as double handling of inventories;
4) Uncovered that there were NO comprehensive periodic performance evaluation formally being conducted/ communicated with toll manufacturers.
5) Identified a toll manufacturer that are doing even better than the company in terms of production yield;
6) Identified delayed payments with toll manufacturer producing a number 1 brand in the market that could impact operations and productions. This resulted in subsequent prompt payments;
7) Provided reasonable business assurance to stakeholders with other matters regarding toll manufacturers.
STAR Scenario #3:
Financial Statement Audits
SITUATION:
Need to conduct regular Financial Statement Audits of international shipping group of companies.
TASK:
Audit Financial Statements.
ACTION:
1) Performed analytical procedures to aid in determining high risk FS account/areas;
2) Performed process walk thru, substantive tests and test of controls;
3) Performed risk-control assessments;
4) Evaluated and communicated results.
RESULTS:
1) Uncovered annual tax savings of about P12M+ by applying recommendations in accounting and tax treatments;
2) Provided reasonable assurance on the company’s financial statements & transactions, among others.
We can enable you to strategically move and continuously improve to reach your objectives!
Christian Fusion Business Solutions (CFBS) is dedicated to help you succeed in achieving your most important objectives & goals by applying pertinent principles, methods & disciplines in internal auditing. Internal audit activities can be applied to various business units, departments, segments, end-to-end processes, operations, activities, projects, contracts, accounts or group of personnel to name a few. Your imagination could be the only limit and the number & types of audits are rising. We will only enumerate a few of the general types of audits we currently offer as follows (Please contact us for a detailed discussion of your specific audit needs):
Financial Audits
We can perform audits of various financials including financial statements (i.e. Balance Sheets, Income Statements, Stockholder’s Equity, Cash Flow Statements, etc.), financial reports, records, accounts, transactions, processes, risk management & internal controls to determine its reliability, accuracy & integrity among others.
Compliance Audits
We can perform audits of compliance with various pertinent laws, rules, regulations, contracts &/or company policies & procedures to help you assess & determine focus of compliance efforts and avoid hefty penalties, costly lawsuits, contingent liabilities &/or other undesirable consequences of non-compliance.
Operations Audits
We can perform audits of your various operations including its pertinent records, reports, accounts, transactions, processes, risk management, internal controls to determine its effectiveness, efficiency, reliability, accuracy & integrity among others.
Business Process Audits
We can perform audits of a wide variety of business processes, including end-to-end processes i.e. order to cash, procure to pay, etc., to identify enhancements and opportunities for improvement in performances, risk management and internal controls among others.
Fraud Audits
We can perform audits designed to identify or detect irregularities that could lead to an investigation to uncover fraudulent activities, transactions &/or reporting.
Due Diligence Audits
We can perform due diligence audits before you make decisions leading to significant purchases or investments.
Agreed-Upon Audit Procedures
We can perform audits based on agreed-upon procedures tailored to your specific requirements, circumstances &/or scenarios.
Consulting
We can provide you consultancy services based on your predefined business requirements, scopes, nature, timing, complexity &/or extent.
~~~ In everything you do, put God first and He will crown your efforts with success! ~~~
Why CFBS?
CFBS’ Internal Audits provides an independent, objective assurance and consulting activity designed to continuously add value and improve an organization’s operations. We help organization’s accomplish its objectives by bringing a systematic, disciplined approach to continuously evaluate and improve the effectiveness of risk management, control, and governance processes. Our more than fifteen (15) years of experience, professional service practice & recognized excellence, education & training gained from various industries can give you much leverage & advantages.
Continuously improve & reach your objectives in the midst of the ceaseless & speedy changes in market conditions!
Contact us now for a FREE QUOTATION!
We’ll be glad to hear from you, including about your special or customize requirements.