During times of economic challenges and cost reducing objectives, companies increasingly source functions outside of their core competencies as a way of reducing costs, freeing up capital, and achieving greater flexibility. Strategic sourcing of internal audit (IA) can give an organization immediate access to specialized resources and subject matter professionals globally to help quickly adjust to changing business conditions. The basis of our approach to delivering an effective outsourced or co-sourced internal audit function is to view it using a wider lens that looks at your entire business and places the function in the context of your whole organization. Our professionals, aided by proprietary tools and methodologies, assist organizations to move forward with the right approach to improve or establish their internal audit functions. KPMG’s proprietary Global Internal Audit Methodology offers a wide-ranging approach that coordinates a series of steps and activities designed to meet the increased requirements of today’s internal audit function.
KPMG’s Strategic Performance Review of Internal Audit (K’SPRint) is our global approach to providing a strategic diagnostic review that helps organizations increase the value of their Internal Audit function. KPMG’s K’SPRint methodology helps management assess how well Internal Audit is positioned within the organization to contribute to business performance and provides a basis for redesigning or improving the function. The methodology is supported by a conceptual framework that identifies three focus areas, “Positioning, Processes and People” and the related “driving principles” drawn from KPMG’s knowledge and experience with internal audit functions. It also encompasses assessment against leading practices and IIA Standards.
KPMG’s EIAF methodology will assist organizations in delivering a co-source or outsource engagement that requires the establishment or revitalization of the internal audit function. EIAF focuses on providing support to those organizations that have none or a small IA function and guides clients with the steps needed to establish an internal audit function. The implementation of EIAF will typically involve the consideration of existing business processes, controls, business models, systems and organizational structures, all of which aim to help an organization achieve its business objectives and help enhance overall performance results.
Enterprise Risk Management (ERM) Services focus on helping organizations implement sustainable ERM systems, as they pursue more profitable and competitive operations. Our professionals help clients develop predictive capabilities so that clients can react to risk and respond in a manner that enhances business value and performance. Our industry-specific ERM capabilities apply to all financial and non-financial sectors, and include: enterprise risk assessments, an evaluation of the current state of risk management practices; the development of a practical road map to achieve the desired risk management end-state; knowledge transfer; and training.
One of the most important challenges for board members is to build a foundation of trust - with management, the investment community, regulatory agencies, and the public. The stakes are high and the margin for error is low. While new standards are emerging, one thing remains clear: the responsibility to adopt sound governance practices has been placed squarely on corporate directors and officers. KPMG has developed a strategic framework that can enable a board to self-assess its existing governance practices and to build consensus around brining desired changes to fruition. Such an assessment is not only prudent but also responsive to increased stakeholder expectations for board self-evaluation.