Industry expectations from the consultants

This topic has been discussed multiple times over the period at various forums but in most cases, stakeholders’ expectations are not met by the consultants. I keep getting this kind of feedback from my fellow Internal Audit Heads.

There can be multiple reasons around the same including limitations at the client’s end w.r.t mismatch in SOW vis-à-vis stakeholder’s expectations, data, and process owner’s availability, data alteration, or misleading information, etc. These are some of the serious concerns which should be managed end to end by the IA Head and the consultants with the support of the top management if required.

Assuming, there are no limitations at the client’s end then what should be done by the consultants to add value to the business and assure the respective stakeholders? Although, I have been discussing and sharing my views and inputs with all my team members and other colleagues at various forums but now thought to spread awareness for the benefit of everyone through one of the biggest professional networks i.e. Linkedin.

Listed below are some of my key learnings for your reference:

-    Understand the client’s business, problem statement/Scope of Work and objective of the review;

-    Understand the universe of the project based on financial statements, system data, discussion with various stakeholders, Industry colleagues, etc.;

-   Get inputs from the top management at the beginning of review on the entire scope and check concerns if any related to any function, individual or the process;

 -   Draft your interview questions in advance before meeting with the client and send MOM to avoid any conflict later. Avoid repetitive questions;

 -   Keep track of data requirements, follow-up and send a status update to the management on a timely basis;

 -   Prioritize your work basis client’s availability and project requirements;

 -   Usage of the latest technology such as AI, Blockchain or Data Analytics tool, etc for sample selection, testing, and reporting. Try to use technology as much as possible to ensure accuracy, increasing efficiency, and better results;

 -   Define and identify sample basis regulatory requirements, erratic trends, abnormal transactions, and the materiality of the transactions;

 -   Data/Process benchmarking;

 -   Go over and above procedural non-compliances and add value to the business;

 -   Focus on solutions as well and don’t limit yourself till the level of observations;

 -   Way-forward: understand the business vision for the next couple of years, planned/expected changes in the process, and conduct review keeping in mind those changes and provide solutions accordingly;

 -   Design risk categories along with the impact parameters such as financial, regulatory, reputation, etc. and rate your observations accordingly to avoid conflicts with the auditee;

 -   Highlight risks to the business which are specific to your observations and not in general;

 -   Agree on recommendations, responsible team and the timeline for implementation with the auditee;

 -   Review your results in terms of factual accuracy, executive summary, reporting requirements, etc. before releasing;

 -   The Executive summary should be updated with the material observations where management focus is required on an immediate basis. Summarize and assess overall project e.g., well-managed area, the improvement required, etc. Just to update at the end of the day stakeholders are looking for your assessment and going to take actions accordingly;

 -   Good practices: with the change of time auditee is also expecting you to highlight good practices so that they are getting recognition from the top management, continue the same practices and at the same time, you are also able to manage the relationship despite giving observations;

 -  Follow-ups: Ensure implementation status is checked on a timely basis (based on the agreed timeline) with the auditee and update is given to the management and;

 -   Stay in touch with your key connections in the organization i.e. IA Head, CFO, etc. and update them on a timely basis with the changes in the industry, process, policies, regulatory norms, surveys, conferences, or white papers prepared by you. This will help the organization and consultants to move forward together with the same vision.

Happy to receive your inputs or respond to your queries if required. Thanks

PS: Next time I’ll try to share expectations of consultants 😊