sekelaxabiso cae masterclass - session 1

Transforming Your Assurance

& Advisory Function

©The content in this presentation is copyright of SekelaXabiso CA Inc - 2017. All rights reserved.

Session Outline

• About SkX CAE

MasterClass

• CAE MasterClass

Journey

• Concept of a World-

Class Assurance and

Advisory function;

• Questions

© 2016 SekelaXabiso

Background to CAE MasterClass™


• Grave complexities in business environment with heightened

stakeholder unrest;

• Immense pressure on IA to become trusted business advisors;

• Significant disconnect or non-alignment of IA strategy to

organisation’s corporate strategy;

• No formal training or leadership development programme

specifically for CAE’s, despite their unique and onerous mandate;

• Unending stakeholder expectations for IA to transform their

approach, methodologies and techniques;

• Generally stringent legislative and regulatory professional

environment;

• Strategically position CAE’s as leading sources for innovation and

value add in their organisations.

SkX’s CAE MasterClass™ Vision


• To establish a formal CAE Technical and Leadership

programme that is superior and highly rewarding to CAE

incumbents;

• Admittedly, there is enough justification to have a formally

package CAE MasterClass™ programme that will secure

superior performance by CAE’s;

• Our CAE MasterClass™ programme is packaged primarily

around and beyond organisational strategy, governance,

risk and control;

• Our plan is to jointly host with IIA(SA), a CAE excellence

awards annual event to recognise the contribution of CAEs

to the economy and the nation at large.

CAE MasterClass Key Themes


PEOPLE & SECTOR

EXPERTISE

STAKEHOLDER RELATIONS

METHODS, TOOLS &

PRACTICES

CAESTRATEGY

GOVERNANCE & PROCESSES

THOUGHT LEADERSHIP

& INNOVATION

LEADERSHIP BALANCE

SCORECARD

• Align internal audit with

the organisation;

• Guarantee IA success in

an uncertain

environment;

• Significantly improve IA

performance;

• Stimulate innovation &

creative thinking; and

• Benchmarked against

USA’s Vision University

CAE Leadership

framework.


Benefits to Attending SkX’s CAE MasterClass™

• Enhance your capability to transform your internal audit function to

become a world-class assurance function that delivers superior

service;

• To help you exceed expectations in areas of governance, risk

management and control, as well as develop a clear action plan for

implementing key aspects of the Combined Assurance Framework;

• Become a solid leader for IA function with special focus on client

relationships, process excellence, and strategic leadership;

• An opportunity to share ideas with peers as well as leverage the

collective knowledge of successful CAEs across various sectors;

• Actively participate in CAE-inclusive discussions and gain insights on

current trends, practices, and critical issues.

• Earn great hours of continuing professional development (CPD).

CAE MasterClass Modules

Universe

Epitome of a world class IA

Balance score card driven IA

Transforming Maturity of IA for value add

Managing key stakeholder of an IA function

Embedding a combined assurance framework

Delivering the desired levels of assurance and advisory


• Epitome of a world-class

internal audit function;

• Develop and implement an

IA balance scorecard;

• Transforming the internal

audit value chain:

• Establish a stakeholder

relationship management

plan;

• Leveraging the benefits of a

Combined Assurance

Framework;

• Delivering the key

engagement deliverables.

Epitome of a world-class internal audit function

• Governance dimension and alignment with organisational

strategy;

• Creating an enabling environment for a value adding internal

audit function;

• Track, measure and monitor the IA trusted business advisor index;

• People dimension as well skills and competency alignment with

organisational strategy;

• Strategic positioning of the internal audit function;

• Methods, tools and techniques dimension;


INTERNAL AUDIT

Develop and implement an IA balance scorecard


Customer Perspective (40%):• Stakeholder Feedback score ≥4;• Significant risks addressed by planned projects ≥100%;• Efficient audit planning process = days to submission to Audit

Comm;• Planned projects timely completed within allocated budget

≥95%;• Audit effort dedicated to “value for money “audits – 30%;• Number of issues raised in draft report versus issues in final report

>90%;• Timely and complete closeout of reports >90%;• Reliance placed by external auditors or other identified

assurance providers per pre-agreement ≥ 100%;• Overall AC Evaluation score >4.

Engagement Team (25%):• Timely performance engagement reviews of individual team

members <10 working days of project file final sign off byDirector;

• Number of individuals with timely engagement reviews - 90%;• Average competency score based on engagement reviews >4

score (of 5);• Attendance to specific learning & development initiatives >95%

targeted group;• Individuals achieving their CPD set targets >100%;• Climate survey average score of >4 (of 5).

Financial Health: (15%)• Average team productivity/chargeability >85%;• Compliance with the resource mix per Approved Audit planning

schedule (within 5% threshold);• Efficiency in billing processes - Invoice rejection rate of zero;• Timely submission of invoices - 100%;• Timely collection of invoiced fees -100% (within 30 working days

from submission);• Time written off <3% of billable time.

Operational efficiency (20%):• Use of data analytics on the project ≥30% of budgeted hours;• Integration efforts with other assurance providers 360˚ score of

≥4;• Peer review average score of >4 of 5 per team;• 10 day close out of files after report is finalised;• 5 day turnaround time from when file is submitted for second

review and QA;• 2 Day turnaround time for clearing of reviews and archiving.

KPI

Transforming the internal audit value chain

• Strategically positioning the IA function;

• Creating a mature governance, risk and control environment;

• Aligning IA methodologies, tools and techniques with the Corporate

Strategy – embedding a Risk Based IA;

• Balancing consulting and assurance services;

• Leveraging technology to meet IA strategic goals;

• Enhancing quality standards in delivering assurance and consulting

services;


VALUE CHAIN

Managing Internal Audit key stakeholders

• Three dimension stakeholder lens, with emphasis on: – Financial Value creation;

– Environmental sustainability;

– Corporate social citizenry;

• Establish a complete stakeholder universe;

• Develop and execute Stakeholder management plan;

• Track, measure and monitor stakeholder satisfaction index;

• Implement stakeholder strategic improvement plan;


KEY

Leveraging the benefits of a Combined Assurance Framework

• Develop and embed an organisation wide combined

assurance universe;

• Co-ordinating the implementation, tracking and reporting of

combined assurance results/outcomes;

• Pre-requisites for a combined assurance framework to be

effective;

• Integrated assurance versus combined assurance;

• King IV readiness for embedding an optimised combined

assurance framework.


ASSURANCE

Delivering the key engagement deliverables

• Delivering high impact assurance and advisory outcomes;

• Use of dynamic dashboards in delivering assurance

outcomes;

• Holding strategic conversation with key stakeholders;

• Track, monitor and measure the impact of value add by the

audit function;


KEY

A world-class IA function


World Class

What is “world class”?

• The Oxford English Dictionary defines

“world class” as ranking among the

world's best. So what does that really

mean for an internal audit function?

• Professional services, and processes

that are ranked by customers and

industry-experts as “among the best

of the best”.

• This symbolises excellence in

standard-setting in terms of design,

performance, quality, as well as

customer satisfaction and value

creation when compared with all

similar functions from anywhere in

the world.


Think World Class

Features of a world-class audit function: “My Top 20”

• Intimately understand the business,

strategy and the dynamics of the internal

and external factors and can solidly

demonstrate this position;

• Have established articulate vision, mission

and its values which will drive its assurance

and consulting strategy across the

organisation;

• The IA strategy allocates reasonable efforts

and time to marketing the key strategic

contribution of the IA function to secure

unassailable buy-in by all stakeholders;

• Has become a trusted business advisor

across the organisation – IA is most sought

after for views, opinions, as well as

presence in key meetings by the IA

function stakeholders;



• Have embedded a balance scorecard to

track and monitor delivery of IA assurance

to clients and consistently achieve 90% of

all targets;

• Proactively conduct thought leadership

initiatives targeted at impacting certain

challenges faced by its organisation;

• Continuously train and empower key

governance stakeholders to fully

appreciate IA discipline and related

developments relating to assurance and

consulting services;

• Boost 100% reliance on their work by

external auditors and other relevant

assurance providers on pre-agreed focus

areas;


Innovative


• Consistently socialise the IA function

methodologies, approach, tools &

practices as well as the team credentials

with IA function stakeholders;

• Engage in strategic conversations with the

key stakeholders as well as the IA function

personnel;

• Embraces and encourages diversity of

thought, creativity and innovation;

• Strives to be on the cutting edge of

technology (extensive use of data analytics);


Inclusive


• Plan and execute audits based on key risks –

audit plan leaves room for emerging risk,

about 20-25% unallocated IA resources;

• The IA plan is characterised by a significant

focus on real-time and continuous

assurance for all mission-critical aspects of

the organisation;

• IA organisational structure is resourced with

an ideal mix and balance of skills and

competency that mirrors the structure of its

organisation;

• Carefully allocates its high priority resources

to the key business drivers of the

organisation such as the product or service

value chain, distribution/logistics, customers,

as well as sustainability of the organisation;


Coherent


• Continuously motivates for change,

creates an environment that strives to

motivate IA personnel as well as drive their

passion to soaring heights;

• Hold tough conversations and honest

discussions with all critical stakeholders;

• Have seamlessly embedded formal

continued professional development

programmes that are robust to prepare

the IA function for any challenges in the

environment;

• Consistently receives high accolades from

IA function stakeholders in relation to the

quality of services and value add

delivered. ;


Caring

Thank You!

sekelaxabiso cae masterclass - session 1

Economy & Finance