Tools

The following tools were published on KnowledgeLeader this week:

Risk Management Concepts Guide

In this tool, we’ve compiled guidelines that auditors can use to better understand and improve the organization’s risk management processes. This guide underscores the importance of an integrated risk management (ERM) approach that encompasses all strategic, operational, compliance and reporting risks. It also outlines key components such as developing a risk management policy, integrating risk management into existing processes, clearly defining roles and responsibilities, and maintaining focused executive and board reporting. It also emphasizes building and driving a risk-aware culture, assigning clear accountability, and using consistent risk language and evaluation scales. 

Fraud Policy

Our Fraud Policy provides a detailed framework for preventing, detecting and responding to fraudulent activities within an organization. This tool underscores the company's commitment to transparency, accountability and integrity while fostering a culture of honesty and intolerance toward fraud and corruption. This policy defines fraud and corruption, offering examples such as financial misappropriation, misuse of company resources and unethical behavior. It establishes procedures for reporting suspicions, ensuring that employees and external parties can voice concerns through secure channels. It emphasizes confidentiality with measures in place to protect whistleblowers and prevent reputational harm to individuals wrongly accused. 

Workers' Compensation Policy

Access our detailed workers compensation policy sample to enhance your organization's injury reporting and management procedures. This policy provides employees with a safe, healthful working environment, as well as a method for obtaining the appropriate workers' compensation benefits. According to this tool, all employee work-related injuries or work-related illnesses must be immediately reported to the employee’s immediate supervisor and human resources, whether or not the injury/illness appears serious.

Inventory Audit Work Program

Our Inventory Audit Work Program is a detailed guide designed to enhance the accuracy and efficiency of inventory management through systematic auditing practices. It outlines methods to identify discrepancies between physical inventory and recorded data, address risks like theft and obsolescence, and ensure compliance with regulatory standards. This tool emphasizes improving inventory control processes and provides organizations with actionable steps to maintain accurate financial statements and optimize operational efficiency. It serves as a customizable framework for organizations to tailor audit procedures to their unique needs while continuously monitoring and refining their inventory management strategies.

Returned Checks Audit Work Program

Improve your organization's financial integrity using our Returned Checks Audit Work Program for effective auditing returned check processing. This work program provides detailed steps for planning, fieldwork and reporting to ensure proper oversight and adherence to best practices. The program emphasizes understanding organizational structures, workflows and processes through interviews, documentation reviews and process mapping. Organizations are guided to assess controls and procedures related to debits, overdraft prevention mechanisms, compliance with legal requirements and charges applied to returned checks.

Publications 

KnowledgeLeader has also published several publications this week.

Executive Perspectives on Top Risks for the Near- and Long-Term: Private Equity Industry Group Results

This report highlights critical risks facing private equity (PE) firms and their portfolio companies, as identified by 1,215 global executives in Protiviti’s 2025 Executive Perspectives on Top Risks Survey. The survey reveals that cyber threats have emerged as the top operational risk, surpassing economic concerns, which now rank second due to inflationary pressures and rising labor costs. Executives are increasingly worried about the ability to attract and retain talent, especially amid an evolving workforce landscape and the rapid adoption of artificial intelligence (AI), which is reshaping job roles and necessitating new skills. 

Why Right Now Is the Time to Double Down on Sustainability

In this article, Audit Analytics emphasizes the strategic opportunity for businesses to enhance their sustainability efforts in light of recent regulatory delays, particularly the postponement of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D) by the European Parliament. This reprieve should not be viewed as a setback but rather as a chance for forward-thinking companies to strengthen their sustainability strategies, which are increasingly demanded by investors, consumers and employees. The article outlines several key benefits of prioritizing sustainability: future-proofing the business against regulatory changes and market volatility, attracting capital and talent by aligning with investor preferences and employee values, and building stakeholder trust through proactive transparency.

Prioritize Cost Optimization Over Cost Cutting to Achieve Meaningful Results

This article underscores the superiority of cost optimization strategies over traditional cost-cutting in today's volatile business landscape. While immediate cost reductions might achieve short-term goals, they often inflict long-term damage on an organization’s morale, innovation capacity and strategic execution. CFOs are advised to shift from old-school cost-cutting to a sustainable cost optimization approach, which not only aligns costs with business value but also supports strategic objectives, enhancing the company's agility and resilience. The narrative warns against the hazards of indiscriminate cost reductions, such as diminished service quality and hindered growth, advocating instead for a methodical approach that uses advanced analytics and AI to pinpoint effective cost-saving measures.

Recommended Resources 

This list of recommended resources from the web may be of interest to you. Click each link to learn more. 

1. Elimination of PCAOB Can’t Remain in Budget Bill, Senate Official Rules
2. Rising Costs Re-Emerge as Companies’ Top Benefits Issue
3. Can CPA Requirement Changes Solve Finance’s Talent Shortage?