Internal Audit Services: Case Study

Implementation of a local internal audit function with a financial services company

The issue

A financial services company (subsidiary of an international group) was considering the implementation of a local internal audit function in Luxembourg. The objective was to define which organisation would be cost effective (externalising the audit, appointment of an internal auditor or assigning the role to a member of the group).

Our approach

• Review the existing organisation (processes, human resources and systems) and identify key risks;
• Evaluate the requirements and expectations of the Board of Directors and executive committee members;
• Create an internal audit report template that includes specific reporting topics required by the Board of Directors;
• Assist in designing the audit plan and audit programs;
• Define and describe the scope of the internal auditor's job;
• Manage the internal auditor's recruitment process;
• Train the internal auditor;
• Provide quality review of audit reports.

The outcome

• Creation of a cost effective internal audit department in Luxembourg
• Significant improvements to the company' organisation
• Improvement of reporting process to the Board of Directors