Tools

The following tools were published on KnowledgeLeader this week:

Receiving Policy

Our Receiving Policy outlines essential procedures and guidelines for managing the receipt of inventory, non-inventory items and services. It emphasizes the significance of documented policies as crucial components of efficient operations and internal controls. This tool defines the roles and responsibilities of key personnel involved in the receiving process, including receiving clerks, goods requestors, service requestors, accounts payable teams and purchasing groups. By establishing clear protocols, this policy aims to ensure accurate financial reporting and safeguard company resources.

Data Center Review Audit Work Program

This Data Center Review Audit Work Program is designed to facilitate the auditing of data centers, focusing on both security and environmental controls. It outlines a systematic approach and includes two distinct samples, each aimed at addressing specific audit objectives. Sample 1 emphasizes evaluating access and environmental controls, detailing the roles of the project team and the phases of the audit process, which include planning, fieldwork and report issuance. It highlights the importance of physical security measures, such as reviewing access procedures, ensuring vendor supervision, and documenting the physical characteristics of the data center. The sample culminates in a reporting phase where findings are compiled and discussed with management before final publication.

Banking/Financial Institution Account Policy

Our Banking/Financial Institution Account Policy provides a framework for managing corporate banking relationships and financial accounts. It includes three samples that delineate specific policies, objectives and operational guidelines. Sample 1 focuses on the establishment and maintenance of financial institution accounts in the U.S., emphasizing the role of the corporate treasury department in safeguarding company assets and minimizing financial risks. It outlines the qualifications required for financial institutions, the process of opening and closing accounts and the importance of annual reviews to ensure continued relevance to business operations. Sample 2 addresses global banking consistency and details procedures for managing banking relationships, including the responsibilities of the treasurer in evaluating banks based on various criteria such as reputation and operational efficiency. 

Human Resources Risk Management Assessment Report

Our HR Risk Management Assessment Report evaluates the current and future state of HR risk management practices across a global organization. The assessment uses the Capability Maturity Model (CMM) and identifies key areas requiring improvement, such as recruiting and hiring, performance management, timekeeping and compensation, policies and procedures, and legal compliance. The findings in this sample reveal that while some HR processes in the U.S. are relatively mature due to established systems like HRIS, global operations face challenges related to decentralization, inconsistent standards and limited oversight. For instance, hiring practices lack standardization globally, resulting in inefficiencies and risks. 

Payroll Audit Work Program

A payroll audit can help a company provide an evaluation of the internal and business environment to ensure that the internal controls are in place and operating effectively, evaluate the effectiveness and efficiency of the payroll cycle process, and develop recommendations to effect meaningful change. By conducting regular payroll audits, companies can protect themselves from errors, fraud and financial losses. The two sample work programs included in this document were designed to help you design a comprehensive and systematic approach to auditing your payroll processes. The steps included in these samples allow auditors to gather sufficient evidence to support their audit findings and recommendations.

IT Capabilities CMM

This capability maturity model can be used to measure the maturity of an organization’s IT governance, infrastructure, applications and security practices and to assist its progress from the initial/ad-hoc stage toward the optimized state. The capability maturity model describes a maturity curve on these capability levels: initial, repeatable, defined, managed and optimized. In this sample, an optimized organization’s standards and cross-training are ingrained into operations.

Publications 

KnowledgeLeader has also published several publications this week.

Annual Report (Form 10-K) Restatements 

Explore insights from Audit Analytics’ 2025 Financial Restatements Report on 10-K restatements and their impact on controls, investor confidence and regulations. This publication highlights trends over two decades, noting fluctuations in the frequency of restatements, particularly the rise in material corrections ("Big R" reissuances) due to regulatory changes impacting special purpose acquisition companies (SPACs). The primary benefit of this analysis lies in its ability to guide stakeholders—auditors, regulators and investors—in understanding evolving financial reporting practices and identifying areas of concern for long-term valuation and investor confidence. This information is especially valuable now, given the dynamic nature of financial innovation and the increasing role of SPACs, which have introduced complexities in accounting standards and compliance.

The Next Phase: AI and Human Collaboration Powering Internal Audit Transformation

Explore how integrating artificial intelligence (AI) into internal audit functions can revolutionize the profession. By leveraging generative and agentic AI technologies, chief audit executives (CAEs) and their teams can enhance operational efficiency, improve decision-making, and deliver deeper strategic insights. This transformation is not only about adopting advanced tools but also fostering a human-AI collaboration where auditors focus on creative, relational and judgment-based activities that AI cannot replicate. This article emphasizes that AI enablement is imperative in today’s dynamic landscape, offering unparalleled opportunities for internal auditors to become high-value strategic advisors. The ultimate benefit lies in achieving faster, more insightful and efficient audits while aligning with organizational priorities.

Microsoft GM of Global Advertising: AI-Driven Personalization Will Fundamentally Reshape CX

Explore how integrating artificial intelligence (AI) into internal audit functions can revolutionize the profession. By leveraging generative and agentic AI technologies, chief audit executives (CAEs) and their teams can enhance operational efficiency, improve decision-making, and deliver deeper strategic insights. This transformation is not only about adopting advanced tools but also fostering a human-AI collaboration where auditors focus on creative, relational and judgment-based activities that AI cannot replicate. This article emphasizes that AI enablement is imperative in today’s dynamic landscape, offering unparalleled opportunities for internal auditors to become high-value strategic advisors. The ultimate benefit lies in achieving faster, more insightful and efficient audits while aligning with organizational priorities.

Recommended Resources 

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

1. Economic pessimism Grows, but CFOs Have Strategic Responses
2. The Week in GRC: SEC and U.S. Stock Exchange Operators in Talks to Ease Listing Requirements
3. Nine Steps for CFOs to Build a Future-Focused Finance Organization