selling your recommendations presented by: lindsay mercer isaca london 22 november 2001
TRANSCRIPT
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Selling Your Recommendations
Presented by:Lindsay Mercer
ISACALondon
22 November 2001
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Selling your recommendations
WHY?
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Selling your recommendations
Why would you want to?
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What’s your culture?
Empowered Directed
Trust Control
Actions Recommendations
Where are you?
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What’s your role?
Actions Recommendations
Where are you?
IndependentAssurance
EmbeddedMonitor
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Selling your recommendations
Why should you have to?
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What everyone wants! goal congruent culturally sympathetic well designed risk sensitive cost effective efficient operating RISK MITIGATION
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Selling your recommendations?
Most auditors can’t give theirs away!
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What’s the problem?
Finding wrong irrelevant
Solution wrong not cost effective
Culturally incompatible WIFM?
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Question
all cheques signed by 2 directors bank reconciliations done daily invoices matched with order and GRN
before payment strict authorisation limits monthly management accounts
Are the following strong controls? -
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Business risks are risks that threaten the achievement of business objectives
What is a business risk?
Finding
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Solution 1
Objective
Criterion
Cause Condition
Effect
Recommendation
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Deficiency finding components
condition - what’s wrong criterion - what should be happening and why cause - what is really causing the problem effect - what is the impact on the business (£) recommendation - how to correct the cause action - management’s commitment
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Des
ign
ApplicationBad
Go
od
Good
OKJFDI
Design & do!
!
Solution 2
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Solution – cost effective?
Spend a £ to save a p?
Cracking walnuts with sledgehammers?
Addressing the right axis?
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LIKELIHOOD
CONSEQUENCE
5
4
3
2
1
1 2 3 4 5Lo
Hi
HiLo
Hi
Hi
Addressing the right axis?
Pre
ven
tati
ve
Detective
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Cultural incompatibility
hierarchical collegiate commanding empowered doubting trusting incompetent competent blame no-blame closed open defensive learning selfish sharing IA knows best management
knows best
Trad New
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Cultural incompatibility
Parent
Child
Colleague
Parent
Child
Colleague
Auditor Auditee
Transactional analysis view
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better side cheaper/more
efficient better achievement
of objectives help fulfill
responsibilities
self interest makes my life easier makes me look
better makes me more
money employment
enhancing keeps me out of jail
WIFM?
Making your rec’s irresistible
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Do you really want to?
organisation’s culture RM maturity your role
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If you really must!!!!!!!!!!
get your fieldwork right relate to business objectives address the cause not the symptom be proportionate & realistic think “victim” - WIFM? hearts & minds or ………………..?
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Selling Your Recommendations
Presented by:Lindsay Mercer
ISACALondon
22 November 2001