Check out the 10 most frequently viewed audit tools and publications on KnowledgeLeader in October.

1. Process Classification Scheme (PCS)

The Process Classification Scheme (PCS) document, powered by Protiviti's KnowledgeLeader platform, provides a framework for businesses looking to categorize and understand their core functions and processes. This scheme delineates business activities into two primary categories: operating processes and managing and supporting processes, thereby providing a structured approach to analyze and optimize organizational performance. It is instrumental in identifying strategic, operational and tactical levels of business functions, promoting a common language for better communication and alignment within the company.

2. Entity-Level Controls: The Importance of Setting the Tone

An effective organization of consequence, whether public or private, attempts to strike a balance between its mission (usually but not always profit) and its responsibilities to employees, the community, the government (laws and regulations), and society at large. This is accomplished through “corporate governance,” or what was once known as “business ethics." Most experts believe that to be truly effective, corporate governance must start at the top with a set of policies called entity-level controls. This blog post explains the importance of entity-level controls and explores the COSO Framework.

3. Risk Assessment Guide

Every organization faces various risks from external and internal sources that must be assessed. ‘‘Risk assessment’’ is defined as the identification and analysis of relevant risks to achieve objectives, forming a basis for determining how the risk should be managed (accept, reject, share, reduce). To mitigate risks, organizations must set objectives; integrate them with sales; and perform production, marketing, financial and other activities to ensure that everything is operating correctly. This tool contains four guides that can be used by auditors to understand and improve their risk assessment process.

4. Internal Audit Department Key Performance Indicators (KPIs)

This benchmarking tool provides a comprehensive framework for evaluating the performance of an internal audit department using different metrics and indicators. Key concepts discussed include developing effective communication strategies to drive management and employees to action. Metrics include monitoring the percentage of implemented recommendations within agreed-upon timelines, the frequency of surprises at exit meetings, report cycle times, and more. The concept of positioning internal audit as a change agent is also introduced with metrics like issues identified using facilitated sessions compared to traditional audit approaches. 

5. Internal Audit Value Scorecards

Manage and measure the performance of your organization’s internal audit function with the various guidelines in this tool. The content emphasizes the importance of maintaining capabilities through professional certifications, training, and evaluations, while also ensuring audits are completed efficiently and within planned timelines. Detailed calculations and methodologies are provided for tracking progress against objectives, such as issue follow-ups, resource optimization, and compliance with SOX requirements. Additionally, the scorecards highlight achievements in reducing duplicative efforts, automating processes, and improving control structures, with a focus on delivering value through partnerships, training, and continuous improvement initiatives. 

6. Financial Due Diligence Report

Our Financial Due Diligence Report serves as a comprehensive tool for auditors to meticulously examine the financial health and operational efficiency of a target company. It aids in identifying and analyzing key financial metrics such as profitability, asset valuation, liabilities, cash flow and working capital requirements. The report also delves into contractual obligations, contingent liabilities, related-party transactions and revenue recognition policies to ensure that all aspects are thoroughly vetted. Additionally, it evaluates projections and assumptions made by management regarding future performance while providing an in-depth review of human resources, IT systems and internal controls.

7. Accounting Reconciliation Audit Work Program

Optimize your organization's accounting reconciliation accuracy and ensure that discrepancies are reconciled and accounting reconciliations are performed accurately with our comprehensive audit work program. It outlines specific audit objectives, including ensuring that reconciliations are performed accurately, discrepancies are resolved, and adequate documentation is maintained. The program emphasizes the importance of understanding organizational structures, conducting interviews with key personnel, and following detailed audit procedures to evaluate current practices against best practices. Additionally, it highlights the roles of management, internal audit and external auditors in maintaining effective controls and ensuring compliance with regulatory standards.

8. IT Audit Update: Audit Committee Report

Utilize this audit report sample to evaluate your organization’s general computer control risks and report on the progress made toward addressing audit findings. Sample procedures to perform include: interview key members of the management team and other key participants involved with technology infrastructure while leveraging the results of the GCC and other reviews; perform a gap analysis by comparing interview results, documentation reviews and observations to the information technology infrastructure library (ITIL) best practices; and validate findings with interview participants to ensure the accuracy of the results and discuss ongoing efforts that meet ITIL best practices.

9. Preliminary Controls Self-Assessment Questionnaire

Our Preliminary Controls Self-Assessment Questionnaire is designed to aid internal audit departments in evaluating and understanding the existing control environments within an organization. It serves as a preliminary step before conducting detailed audits, allowing managers or process owners to self-assess their current systems and controls across various domains such as treasury, information technology, billing, payroll, and purchasing. This structured approach helps in identifying areas of strength and pinpointing vulnerabilities that require attention, thereby facilitating targeted improvements in business processes and internal controls. The document includes 11 sample questionnaires that are all adaptable to different business contexts, ensuring relevance and applicability across diverse organizational scenarios.

10. Internal Audit Feedback Questionnaire

This tool includes 10 sample questionnaires that can be used by internal audit functions to gather client feedback and measure client satisfaction. Sample questions include: What is your overall evaluation of internal audit’s performance for this project? How much value do you believe the audit provided to your group/department? How likely are you to use internal audit for future projects? How much would you be willing to recommend internal audit to other members of management? Would you ask internal audit for help in a situation warranting their attention? Does internal audit perform work efficiently and effectively in an acceptable amount of time?