Tips for students who are struggling with MCQ section in CIA & CMA exam

 Very important tips for Students who are struggling with MCQ section in CIA & CMA exam

⭕

*Common mistakes students make while attempting objective type questions:*

1. Lack of time management:⏳ Not allocating sufficient time for each question.

2. Insufficient reading❌: Failing to read questions and options carefully.

3. Misinterpreting questions:⁉️ Misunderstanding the question's intent.

4. Ignoring keywords: 📍Overlooking crucial words or phrases.

5. Guessing randomly: ⁉️Making uninformed guesses.

6. Not eliminating options: Failing to remove obviously incorrect choices.❌

7. Overthinking: 😌Spending too much time on a single question.

8. Careless marking: 😕Incorrectly marking answers.

9. Not reviewing: 🫵Failing to review answers before submission.

10. Panic and stress:🥸 Allowing anxiety to impact performance.

11. Lack of practice: 👎🏾Insufficient exposure to objective-type questions.

12. Poor understanding of concepts: 🏷️Weak grasp of subject matter.

13. Confusing similar options:⁉️ Mixing up similar-looking choices.

14. Not using the process of elimination: 🗑️Failing to remove incorrect options.

15. Changing answers: 👎🏾Unnecessarily altering correct answers.

⭕

To avoid these mistakes, students should:✅

- Practice time management⏳

- Read questions carefully🔎

- Understand the question's intent🔖

- Focus on keywords🔐

- Eliminate obvious incorrect options⁉️

- Stay calm and composed☺️

- Review answers before submission💯

- Practice regularly✍️

- Strengthen subject knowledge📈

By being aware of these common mistakes, students can develop strategies to improve 📈their performance in objective-type questions.

⭕

*Students..feel free 🆓 to discuss with me if you want to clarify 👉some doubts.. ✍️Text on 9773464206..*⭕

Regards from Prof Mahaley Head Gmsisuccess Mumbai 🎓

Enroll before 1 st January 2025.. ACCA FRM CIPFA EA CIA CPA

Enroll before 1 January 2025..ACCA CPA CIMA FRM CIPFA EA..Gmsisuccess Goregaon West Mumbai Tel 9773464206.Click here ✍️ to get this offer..CIA Gmsi Training Centre on Google: https://posts.gle/zE7Aas

How global professional credentials programs can help students boost their professional career prospects and jobs in MNC companies:

Enhanced Career Prospects

1. *Global Recognition*: Credentials like US CMA, US CPA, CIMA, ACCA, FRM, CIPFA, EA, and IFRS EA are recognized globally, making it easier to work abroad or for MNCs.

2. *Increased Earning Potential*: Studies have shown that professionals with these credentials can earn higher salaries compared to those without.

3. *Career Advancement*: These credentials demonstrate expertise and commitment, leading to faster career advancement and promotions.

Improved Job Prospects in MNCs

1. *MNCs' Preferred Qualifications*: Many MNCs require or prefer candidates with these credentials, especially in finance, accounting, and risk management roles.

2. *Global Networking Opportunities*: These credentials provide access to global networks of professionals, creating opportunities for collaboration, mentorship, and job referrals.

3. *Cultural Adaptability*: Professionals with these credentials have demonstrated their ability to adapt to global standards and best practices, making them more attractive to MNCs.

Development of Key Skills

1. *Technical Expertise*: These credentials develop technical skills in finance, accounting, risk management, and other related areas.

2. *Strategic Thinking*: Professionals with these credentials learn to think strategically, making them valuable assets to MNCs.

3. *Communication and Leadership*: These credentials help develop essential soft skills, such as communication, leadership, and teamwork.

Increased Competitiveness

1. *Differentiation*: Having a global professional credential differentiates you from others in the job market.

2. *Competitive Edge*: These credentials demonstrate a commitment to ongoing learning and professional development, giving you a competitive edge in the job market.

3. *Adaptability*: Professionals with these credentials are better equipped to adapt to changing market conditions and industry requirements.

Some popular global professional credentials programs include:

1. *US CMA (Certified Management Accountant)*: Offered by the Institute of Management Accountants (IMA)

2. *US CPA (Certified Public Accountant)*: Offered by the American Institute of Certified Public Accountants (AICPA)

3. *CIMA (Chartered Institute of Management Accountants)*: Offered by the Chartered Institute of Management Accountants (CIMA)

4. *ACCA (Association of Chartered Certified Accountants)*: Offered by the Association of Chartered Certified Accountants (ACCA)

5. *FRM (Financial Risk Manager)*: Offered by the Global Association of Risk Professionals (GARP)

6. *CIPFA (Chartered Institute of Public Finance and Accountancy)*: Offered by the Chartered Institute of Public Finance and Accountancy (CIPFA)

7. *EA (Enrolled Agent)*: Offered by the Internal Revenue Service (IRS)

8. *IFRS EA (International Financial Reporting Standards Enrolled Agent)*: Offered by the International Association of Accounting Professionals (IAAP

)

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Useful Tips for students to boost up quality study get sure Success in Exam..

"Time Management Tips for Students...

From.. Gmsisuccess Mumbai.

To maximize your study time, follow these essential tips:

1. *Prioritize*: Focus on key topics and allocate time accordingly.

2. *Create a schedule*: Plan out your study sessions in advance.

3. *Study in chunks*: Break down study material into manageable chunks.

4. *Use active learning techniques*: Engage with your study material through summarizing, self-quizzing, and elaboration.

www.gmsisuccess.in

Effective Study Techniques:

1. *Speed reading*: Use techniques like skimming, scanning, and meta-guiding to read efficiently.

2. *Active recall*: Test yourself regularly to reinforce learning.

3. *Mnemonics*: Use memory aids to associate new information with something familiar.

Understanding and Retaining Key Information:

1. *Identify key terms*: Focus on important vocabulary and concepts.

2. *Create concept maps*: Visualize relationships between ideas.

3. *Take notes*: Record key points and summarize main ideas.

Stay focused, stay motivated!

www.gmsisuccess.in

Here's a comprehensive guide to memory boosting, confidence building, and mind-body healthcare:

Memory Boosting Techniques

1. *Repetition*: Repeat new information out loud or to yourself to solidify it in your memory.

2. *Association*: Connect new information to something you already know or find meaningful.

3. *Visualization*: Use mental images to help remember information.

4. *Mnemonics*: Use acronyms, rhymes, or other memory aids to associate with new information.

5. *Chunking*: Break down large amounts of information into smaller, more manageable chunks.

6. *Active recall*: Test yourself regularly on new information to reinforce learning.

7. *Sleep*: Get adequate sleep to help consolidate memories.

www.gmsisuccess.in

Confidence Building Steps

1. *Positive self-talk*: Encourage yourself with positive affirmations.

2. *Goal setting*: Set achievable goals and celebrate your successes.

3. *Practice mindfulness*: Focus on the present moment and let go of self-doubt.

4. *Seek feedback*: Ask for constructive feedback from trusted sources to identify areas for improvement.

5. *Develop a growth mindset*: View challenges as opportunities for growth and learning.

6. *Take care of yourself*: Prioritize your physical and emotional well-being.

7. *Celebrate small wins*: Acknowledge and celebrate your small achievements.

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Mind-Body Healthcare Tips

1. *Exercise regularly*: Engage in physical activity to reduce stress and boost mood.

2. *Meditate*: Practice mindfulness meditation to calm your mind and reduce anxiety.

3. *Connect with nature*: Spend time outdoors to reduce stress and improve mood.

4. *Eat a balanced diet*: Fuel your body with nutritious foods to support mental and physical health.

5. *Get enough sleep*: Prioritize sleep to help regulate your mind and body.

6. *Practice gratitude*: Reflect on the things you're thankful for each day.

7. *Seek support*: Surround yourself with positive, supportive people.

Additional Tips

1. *Stay hydrated*: Drink plenty of water throughout the day.

2. *Limit screen time*: Establish healthy boundaries around your screen use.

3. *Engage in activities you enjoy*: Make time for hobbies and interests that bring you joy.

4. *Practice self-compassion*: Treat yourself with kindness and understanding.

5. *Seek professional help*: If you're struggling with your mental or physical health, don't hesitate to seek help from a qualified professional.

By incorporating these tips into your daily routine, you'll be well on your way to boosting your memory, building your confidence, and prioritizing your mind-body healthcare.

Gmsisuccess: Empowering Students for Success

At Gmsisuccess, we offer comprehensive support to students, helping them achieve their academic and professional goals.

*Study Planning and Exam Strategy*

- Personalized study plans tailored to individual needs

- Effective exam strategies to ensure success

- Guidance on time management, goal setting, and stress management

*Confidence Building and Mindset Development*

- Online and offline sessions to boost confidence and self-esteem

- Interactive workshops and group discussions to foster a growth mindset

- One-on-one mentoring for personalized guidance and support

*Training in Global Professional Software*

- Expert training in QuickBooks, MYOB, and ERP software

- Hands-on practice and real-world examples to enhance learning

- Certification programs to enhance job prospects and career advancement

Join us at Gmsisuccess and unlock your full potential!

Greetings from Prof Mahaley Head Gmsisuccess Mumbai 

Tel 9773464206

www.gmsisuccess.in

How to score 400+ in US CMA Part 1 and Part 2 Exam... Effective Tips!

 Stretegy to crack 400+ scale in part 1 and part 2  ⁉️ GMSI TIPS ✍️ 

GMSI 1.Be familiar with concepts of all topic, subtopic,even terms, phrases.

Example.. Compliance,impairement, subordinate,override,overseas, redundancy,etc allmost 200+ words..you must be familiar..if not 🚫 then first obstacle in exam.. Difficulty in grasping or understand that question ⁉️ Got it???

GMSI2.Don't wait for revision..During the first reading or lecture only..try to grip the core part of discussion..once you understand topics,parellelly solve MCQ, your tutors mocktest online offline..even essay based questions‼️ 

GMSI3.During lecture, ✍️ important terms, sentence, logical step are discussed.. listen carefully..try to write ✍️ important terms meaning,don't stuck in textbook..move ahead..

GMSI4.Ask question ⁉️ queries, discuss with teachers,follow students who  respond quickly:refer their solution..

GMSI5.Solve questions from students support guide of IMA,that you will get,once you register with IMA..YOU WELL AQUIANTED WITH EXAM TYP QUESTION ⁉️ 

GMSI6.Your confidence & exam competency build up mainly during online offline lecture, during which question answers sessions conducted..participates that.. don't miss 

GMSI7.Try to finish mocktest, before time slot allotted by teacher 

GMSI8.Memorize important types of questions, with their logical steps.. mainly variance analysis, budgetary control,joint cost,overhead allocation.WATCH CAREFULLY HOW PROF MAHALEY WRITING,SOLVING DIFFICULT ILLUSTRATION ON WORD FILE DURING ONLINE SESSION..JUST COPY & MEMORIZE THAT..IT'S AS PER IMA NORMS..

GMSI9.Solve simulated 3 hours comprehensive mocktest, before booking exam..REFER #Gmsisuccess# "Pre Exam Test Series.."at least 3..get your performance report.. know your possibility of wrong steps,wrong assumption,wrong application ..how to overcome your limitations, topic subtopic key words etc 

GMSI10.In main exam also..if you are confident & aggressive then..you can solve mcq in three steps..A.solve first..EASY question ⁉️ which YOU CLICK GRASP easily.. approx 30+questions ‼️ in first hour..next B.moderately difficult 35+ in 2nd hour C.difficult , challenge or lengthy question ⁉️ in 3rd hour 

Students..if you have any questions ‼️ please ask here ✍️ in comment box ☑️ sure respond to you in shortest possible time..even your suggestion are welcome..I will try to give more helpful tips..how to Crack MCQ Questions ⁉️ what is interpretation of MCQ Questions with few illustration..in my next article..thanks students for reading and responding this useful article..Lets determine & initiate challenging task..Are you Ready? Start your study with positive & aggressive approach..

Best wishes..

Prof Mahaley 

Head 

Gmsisuccess Mumbai 

www.Gmsisuccess.in

Unlock Global Career Opportunities with CIPFA Certification

 

*Unlock Global Career Opportunities with CIPFA Certification*🏃🏽‍♂️🏃🏽‍♀️

Are you interested in pursuing a career with prestigious international organizations like the World Bank, EU, ASEAN, UNESCO, or IMF?

CIPFA GMSI Training Centre in Goregaon West, Mumbai, offers a comprehensive training program that can help you achieve your goals.

*Benefits of CIPFA Certification:*👉🏾

- Enhance your career prospects with international organizations

- Develop expertise in public finance, accounting, and management

- Gain a globally recognized certification

*Limited Time Offer:*🔖

Enroll before December 15th and receive a 25% discount on the program fee.

*Contact Information:*👉🏾

Phone: +91 97734 64206
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Don't miss this opportunity to unlock your global career potential. Enroll now and take the first step towards a successful career with international organizations!🏃🏽‍♀️🏃🏽‍♂️

CIA Part 1 & CMA Part 2 students:Essaybased Question ⁉️ Ethical Dilema

 Today's essay based questions ‼️ Topic..How to tackle Ethical issues/Dilemma in a organization

_Purchase Department_

1. Case Study:

Rahul, a purchase manager at a manufacturing company, is responsible for procuring raw materials. One day, he receives a bribe offer from a supplier in exchange for awarding them a contract. What should Rahul do?

A) Accept the bribe and award the contract

B) Reject the bribe and award the contract to another supplier

C) Report the incident to his supervisor

D) Ignore the incident and continue with the procurement process

Answer: 

1. Case Study:

A purchase department employee, Rohan, discovers that a supplier has been overcharging the company for raw materials. However, the supplier has been providing Rohan with personal gifts and favors. What should Rohan do?

A) Ignore the overcharging and continue accepting gifts and favors

B) Report the overcharging to his supervisor and return the gifts and favors

C) Confront the supplier and demand a refund

D) Resign from the company to avoid conflict

Answer

_Payroll Department_

1. Case Study:

A payroll department employee, Priya, discovers that an employee has been misrepresenting their work hours to receive extra pay. What should Priya do?

A) Ignore the issue and continue processing the employee's payroll

B) Report the issue to her supervisor and recommend disciplinary action

C) Confront the employee and demand repayment of the excess amount

D) Resign from the company to avoid conflict

Answer: 

1. Case Study:

A payroll department employee, Raj, is responsible for processing employee salaries. However, he discovers that the company is not paying its employees the minimum wage required by law. What should Raj do?

A) Ignore the issue and continue processing employee salaries

B) Report the issue to his supervisor and recommend corrective action

C) Confront the management and demand immediate correction

D) Resign from the company to avoid conflict

Answer:

_Human Resource Department_

1. Case Study:

A human resource department employee, Ramesh, discovers that an employee has been harassed by a colleague. However, the employee is hesitant to report the incident due to fear of retaliation. What should Ramesh do?

A) Ignore the issue and advise the employee to resolve it on their own

B) Report the issue to his supervisor and recommend disciplinary action against the harasser

C) Counsel the employee and provide support, but do not report the incident

D) Resign from the company to avoid conflict

Answer: 

1. Case Study:

A human resource department employee, Suresh, discovers that an employee has been misrepresenting their qualifications and experience on their resume. What should Suresh do?

A) Ignore the issue and continue employing the individual

B) Report the issue to his supervisor and recommend disciplinary action

C) Confront the employee and demand correction of their resume

D) Resign from the company to avoid conflict

Answer:

_Production Department_

1. Case Study:

A production department employee, Kumar, discovers that a machine is not functioning properly and is producing defective products. However, the production manager is pressuring him to meet the production targets and ignore the issue. What should Kumar do?

A) Ignore the issue and continue producing products

B) Report the issue to his supervisor and recommend corrective action

C) Confront the production manager and refuse to continue producing defective products

D) Resign from the company to avoid conflict

Answer:

1. Case Study:

A production department employee, Ravi, discovers that a colleague is not following safety protocols and is putting themselves and others at risk. What should Ravi do?

A) Ignore the issue and continue working

B) Report the issue to his supervisor and recommend corrective action

C) Confront the colleague and demand that they follow safety protocols

D) Resign from the company to avoid conflict

Answer: 

www.gmsisuccess.in

_Senior Management Level_

1. Case Study:

The CEO of a company, Mr. Sharma, is considering a proposal to acquire a rival company. However, he has a personal relationship with the CEO of the rival company and stands to gain financially from the acquisition. What should Mr. Sharma do?

A) Approve the acquisition proposal without disclosing his personal relationship

B) Recuse himself from the decision-making process due to conflict of interest

C) Disclose his personal relationship to the board of directors and seek their approval

D) Reject the acquisition proposal due to potential conflict of interest

Answer:

1. Case Study:

The CFO of a company, Ms. Rao, discovers that the company's financial statements contain material errors that could mislead investors. However, the CEO is pressuring her to release the financial statements without correcting the errors. What should Ms. Rao do?

A) Release the financial statements without correcting the errors

B) Refuse to release the financial statements until the errors are corrected

C) Report the issue to the audit committee and seek their guidance

D) Resign from the company to avoid conflict

Answer: 

_Board of Directors_

1. Case Study:

The board of directors of a company is considering a proposal to pay a large bonus to the CEO, despite the company's poor financial performance. What should the board do?

A) Approve the bonus payment without questioning the CEO's performance

B) Reject the bonus payment due to the company's poor financial performance

C) Request additional information about the CEO's performance and the company's financial situation before making a decision

D) Delegate the decision to the compensation committee

Answer:

1. Case Study:

The board of directors of a company discovers that the CEO has been engaging in insider trading. What should the board do?

A) Terminate the CEO's employment contract immediately

B) Conduct an investigation into the CEO's activities before taking any action

C) Request the CEO to resign voluntarily

D) Take no action and allow the CEO to continue serving

Answer:

_Audit Committee_

1. Case Study:

The audit committee of a company discovers that the company's financial statements contain material errors that could mislead investors. What should the audit committee do?

A) Request the management to correct the errors and reissue the financial statements

B) Conduct an investigation into the causes of the errors

C) Report the issue to the board of directors and seek their guidance

D) Take no action and allow the financial statements to remain unchanged

Answer: 

1. Case Study:

The audit committee of a company receives a whistleblower complaint alleging that the company's management has been engaging in fraudulent activities. What should the audit committee do?

A) Conduct an investigation into the allegations immediately

B) Report the issue to the board of directors and seek their guidance

C) Request the management to investigate the allegations and report back to the audit committee

D) Take no action and dismiss the whistleblower complaint as unfounded

Answer: 

Please solve & submit your answers

gmsisuccess1@gmail.com

www.gmsisuccess.in

CIA Part 1: MCQ test: Independence Objectivity & Internal Audit Charter

 Today's MCQ mocktest. basic.. please solve, submit your answers

_Internal Audit Charter_

1. What is the primary purpose of an internal audit charter?

A) To establish the internal audit function's responsibilities and authority

B) To define the scope of internal audit activities

C) To identify the internal audit function's stakeholders

D) To outline the internal audit function's reporting requirements

Answer: 

1. Which of the following should be included in an internal audit charter?

A) Audit procedures and techniques

B) Audit scope and objectives

C) Auditor's qualifications and experience

D) Management's responsibilities and expectations

Answer: 

_Independence and Objectivity of Internal Auditor_

1. What is the primary requirement for internal auditors to maintain their independence?

A) Reporting directly to the board of directors

B) Having no operational responsibilities

C) Being free from management's influence

D) Having unlimited audit budget

Answer: 

1. Which of the following can compromise an internal auditor's objectivity?

A) Having a close relationship with management

B) Having a financial interest in the company

C) Having a family member working in the company

D) All of the above

Answer: 

_Definition of Internal Auditing as per IIA_

1. According to the IIA, what is internal auditing?

A) An independent, objective assurance and consulting activity designed to add value and improve an organization's operations

B) A management function responsible for ensuring compliance with laws and regulations

C) A financial function responsible for preparing financial statements

D) A operational function responsible for managing day-to-day activities

Answer: 

1. Which of the following is NOT a key characteristic of internal auditing as per the IIA?

A) Independence

B) Objectivity

C) Assurance

D) Management

Answer: 

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Study Planning & Exam Stretegy 1 for US CMA & CIA Students

 Study Planning & Exam Stretegy for US CMA & CIA students..

Unlock Success in Your US CMA / CIA Exams

Key to Success: Question Practice

Acquiring a firm grasp of required knowledge is crucial, but exam technique and revision strategy are equally vital.

Common Pitfalls to Avoid:

1. Not answering the question

2. Lack of understanding of underlying concepts

3. Simply writing numbers without analysis

4. Inadequate business sense

5. Ignoring question clues

Effective Exam Strategy:

1. Answer simple MCQs first; attempt all questions.. possible to attempt 35 to 40 MCQ in first hour.

2. Plan your approach; prioritize easiest questions.

3. Allocate time wisely; avoid overrunning.

4. Read requirements carefully; focus on key information.

5. Highlight key numbers and words; scribble notes.

Computational Questions:

1. Identify key numbers and information.

2. Jot down proformas and notes.

3. Plan your answer; allocate time.

Written (Essay) Questions:

1. Identify format and recipient.

2. Plan your answer; use titles and subtitles.

3. Address key areas; use formal or informal tone.

General Tips:

1. Spot easy marks; tackle independent parts first.

2. Practice questions under timed conditions.

3. Use GMSI resources: lectures, mock tests, audiovisual capsules.

4. Evaluate performance; focus on weak areas.

GMSI Support:

1. Tuesday (Fast Track Q. Mock Test)

2. Wednesday (Essay-Based Q. Mock Test)

3. Audiovisual Recorded Capsules with PDF Notes

4. Performance Evaluation Reports

Your Goal:

Attempt exam-standard questions confidently, to time, without supplementary help.

Practice Strategy:

1. Start with open-book help; gradually move to timed conditions.

2. Use retired exam questions; assess progress.

3. Identify areas for improvement.

Remember:

1. Attempt all questions.

2. Allocate time wisely.

3. Achieve 70% accuracy.

Best Wishes,

Prof. Mahaley

Head, GMSI Success, Mumbai

www.gmsisuccess.in

Tel 9773464206

Where is Internal Audit, into an increasingly technology-driven, innovation-oriented, risky, and disruptive future!

www.gmsisuccess.com

The world is entering the fourth industrial revolution and new technologies, digitalization, and artificial intelligence are dramatically changing the business landscape.

That means organisations are hurtling into an increasingly technology-driven, innovation-oriented, risky, and disruptive future. The question is now where is the internal audit? The answer is that, most of the time and despite ongoing efforts to meet stakeholders’ growing list of needs, it’s playing catch-up.

Until recently, the Internal Audit profession has not faced the need to innovate. Internal Audit 1.0 was born with the founding of the Institute of Internal Auditors (IIA) in 1941 while the Sarbanes Oxley Act of 2002 brought Internal Audit 2.0. Along the way, such developments as the COSO framework, improved capabilities such as IT internal audit and data analytics, and supplementary guidance have improved the profession following the global financial crisis.

However, as we approach the end of a decade of unsettling uncertainty, organisations face evolving strategic, reputational, operational, financial, regulatory, and cyber risks. There is also an urgent need for Internal Audit to innovate to the next level.

Internal Audit 3.0 is the next generation of Internal Audit, and is a function attuned to the challenges of emerging risks, technologies, innovation, and disruption as the organisation itself. Internal Audit must be a function fully able to assist in safeguarding processes and assets as management pursues new methods of creating and delivering value.

Based on Deloitte external quality assessments (EQAs) conducted for Internal Audit functions in a range of industries, in interviews with senior executives and audit committee chairs, and in numerous Deloitte research surveys with chief audit executives and heads of Internal Audit, the following constitute the triad of value that Internal Audit stakeholders now want and need.

• Assurance constitutes and remains the core role of Internal Audit. Yet the range of activities, issues, and risks to be assured should be far broader and more real-time than they have been in the past. Assurance on core processes and the truly greatest risks is essential but so is assurance around decision governance, the appropriateness of behaviors within the organisation, the effectiveness of the three lines of defense (LoD), and oversights of digital technologies. Assurance is central to Internal Audit’s role but must not be the limit.

• Advising management on control effectiveness, change initiatives, enhancements to risk management related to the three Lines of Defence and other matters – including business effectiveness and efficiency – falls well within Internal Audit’s role and stakeholders’ expectations. All sources confirm that a strong advisory role is key to maximising the value of Internal Audit.

• Anticipating risks and assisting the business in understanding risks, and in crafting preventative responses, transforms Internal Audit from being a predominantly backward-looking function that reports on what went wrong to a forward-looking function that prompts awareness of what could go wrong, and what to do about it, before it happens. Internal Audit becomes more proactive and, through its assurance and advisory roles, helps management intervene before risks materialise.

As the saying goes, “There are those who make things happen, those who watch things happen, and those who ask, ‘What happened?’” The stakes are too high, for both Internal Audit and the organisation, for Internal Audit to be in the latter group. Stakeholder needs have become clear enough for Internal Audit to engage in true transformation. With a vision – collaboratively developed, clearly articulated, and strongly supported – functions can upgrade to Internal Audit 3.0 providing stakeholders with its true worth. The future of Internal Audit has become clear, and the time to upgrade is now.

These key sources of opinion have clearly said that:
Assurance constitutes and remains the core role of
Internal Audit. Yet the range of activities, issues, and
risks to be assured should be far broader and more
real-time than they have been in the past. Assurance on
core processes and the truly greatest risks is essential
but so is assurance around decision governance, the
appropriateness of behaviors within the organization,
the effectiveness of the three lines of defense (LoD), and
oversight of digital technologies. Assurance is central to
Internal Audit’s role but must not be the limit.

Advising management on control effectiveness,
change initiatives, enhancements to risk management
related to the three LoD and other matters – including
business effectiveness and efficiency – falls well within
Internal Audit’s role and stakeholders’ expectations.
All sources confirm that a strong advisory role is key to
maximizing the value of Internal Audit.
Anticipating risks and assisting the business in
understanding risks, and in crafting preventative
responses, transforms Internal Audit from being a
predominantly backward-looking function that reports
on what went wrong to a forward-looking function
that prompts awareness of what could go wrong, and
what to do about it, before it happens. Internal Audit
becomes more proactive and, through its assurance and
advisory roles, helps management intervene before risks
materialize.

Internal Audit planning aims to balance assurance
around two features – core processes and the truly
greatest risks to the organization. Internal auditors can
cover only so many processes per year and often default
to performing audits on a rotational basis in order to
find time to also provide assurance around the greatest
risks. Yet stakeholders need both types of assurance
– assurance that core financial and operational
processes in areas like procurement, payables, payroll,
and health and safety are working properly, and
confidence that the organization’s truly greatest risks
(e.g. cyber, digitalization, change management, etc.) are
appropriately managed – on a more continual basis.
Now, what if – using digital assets – core assurance
could be automated, significantly reducing the
resources needed to cover these traditional, core
processes on a more continual basis? Automated
core assurance harnesses analytics, robotic process
automation (RPA), and artificial intelligence (AI) to
monitor controls and flag non-conformance in real
time. Combine this with automated reporting, and
Internal Audit can communicate non-conformance to
the business so they can remediate immediately, rather
than only being able to check the controls every few
years under a rotational audit plan scenario.

Assure
The core – but not the limit – of Internal Audit:

Advise
Maximizing value to stakeholders:

Anticipate
Delivering forward-looking insights:

Courtesy:

deloitte:gx-internal-audit-3.0-the-future-of-internal-audit-is-now