Digital Audit Universe – Continuous Auditing

– risk-oriented rolling-audit planning supported by methods for continuous-audit planning 2.0 –

Objective:

Dynamic risk fluctuations, their global interconnective impact as well as shorter product lifecycles in an environment with significant influences on the corporate business model call for the implementation of an audit function that is up-to-date and operates in a foresighted manner. In order to keep pace with these developments – from an auditing standpoint – it is necessary to switch from an audit-planning schedule that employs a static, annual perspective formulated one year in advance to a more timely rolling method.

At the same time and from a supervisory perspective, audit-capacity buffers of up to 25 percent should be maintained for ad-hoc examinations in connection with an altered audit-risk landscape. This, after all, is highly advisable from an audit-economic standpoint as well.

In this instance, priority is placed on the creation of foresighted audit-intervention options by establishing a digital audit universe. This universe is to be structured in the form of a risk-oriented landscape of early warning indicators for ensuring the timely allocation of limited audit resources.
ARC supports its clients in the establishment of an “audit risk engine” that provides risk indicators for the systematic evaluation of various audit objects. This can be conducted on a continuous basis or in a periodic cycle appropriate to the client. Equipped with such an engine, audit operations are able to conduct their rolling-audit planning in accordance with the relevant actual risk situation within a company’s practical audit environment.

The German Accounting Law Modernization Act (Bilanzrechtsmodernisierungsgesetz = BilMoG) as well as the country’s Corporate Sector Supervision and Transparency Act (Gesetz zur Kontrolle und Transparenz im Unternehmensbereich = KonTraG) places demands on companies – and consequently on their risk-oriented administrative departments as well. Among these requirements are a timely risk assessment regarding the internal monitoring system as a component of the internal-control, risk-management and governance system. ARC assists its clients in achieving this goal in sync with a statement made by Robert Hirth, executive vice president of the California-based global internal audit practice Protiviti Inc., a leading business consulting and internal audit firm.: “We work in a real-time world, and we need to have real-time auditing. Continuous auditing helps us get there.” (Robert B. Hirth Jr., IIA International Conference 2007)

Topics:

  • Differences and areas of application for continuous auditing vs. continuous monitoring
  • Digitization of the audit universe: continuous auditing
  • Blueprint for an audit risk engine for rolling-audit planning
  • Methods and formative options regarding a modern risk-oriented audit landscape
  • Formulation of business-model-specific adjustment levers and risk components for conducting rolling-audit planning
  • Implementation of the audit landscape’s digitization with regard to the audit object
  • Options for selection of the respective appropriate risk-evaluation systematics and consequences for the operative audit-practice environment
  • Performance of rolling-audit planning with the assistance of quantitative and qualitative risk indicators from a business-model-focused risk assessment
  • Extension module: targeted staff allocation in accordance with key risk areas derived from rolling-audit planning
  • Practical implementation examples and adaption of acquired course knowledge to individual audit objects and the client’s audit landscape
  • Support regarding integration and implementation of a company-tailored solution

Management Trainer

ARC-Institute

About the ARC Institute

With the Audit Research Center, the ARC Institute provides important impulses for the further development of the audit industry. The focus is on networking science and practice. The focus is on further and new development in cooperation with auditors, companies and associations in order to maintain practical relevance and to develop methods, tools and concepts that can be implemented. The results developed in dialogue with industry experts serve as a guideline and adaptation options in practice today, in order to increase the overall benefit of the company in the long term and sustainably with innovative auditing work.

In the spirit of thought leadership, the ARC Institute and the Audit Research Center stand for topic leadership and forward thinking in the area of internal auditing.

Currently, the ARC Institute supports not only leading supranational institutions in the context of research, consulting and personnel development projects, but also numerous listed companies in the three German-speaking countries of Germany, Austria and Switzerland.

 

Dr. Dominik Förschler

ARC Institute Profile: Managing Director | Senior Equity Partner

Dr. Dominik Foerschler
PhD, M.A. Banking & Finance, CIA, CRMA, Quality Assessor

Erfahrung ist unersetzbar. Mehr als 2100 Trainings- und Beratungstage in Zusammenarbeit mit mehr als 190 Unternehmen zeichnen den erfolgreichen Weg von Dr. Dominik Förschler aus. Darunter zahlreiche börsennotierte Unternehmen, supranationale Institutionen wie Zentralbanken, Kreditinstitute sowie zugleich namhafte Sparkassen und erfolgreiche Unternehmensrevisionen aus Industrie und Handel. Das Audit Research Center konzentriert sich unter seiner Leitung auf die Themen, die als Hebel einen wesentlichen Einfluss auf die Leistung Ihrer Revision haben. Dabei ist der Anspruch die Leistungsfähigkeit der unterstützten Revisionen nachhaltig zu verbessern.

Im Sinne des Thought Leadership Gedankens steht das ARC Institute für Themenführerschaft und Vorausdenken im Bereich Interne Revision.


Since heading the Audit Research Center | ARC Institute, responsible for three operational audit and risk advisory teams, Dominik Foerschler developed a new product portfolio strategy based on his Integrated Audit Risk Centric Approach® and a comprehensive CMMi audit approach.

After joining the business school initially as executive assistant to the president, Dominik Foerschler subsequently built up the “Governance & Audit” section, consisting of the four main pillars: Internal & External Audit, Banking Supervision, Corporate Governance and Fraud Investigation. He established the “Audit Challenge” leadership conference series as an audit methodology conference for the three German-speaking countries Germany, Austria and Switzerland.

Previously, Dominik Foerschler launched his career in the financial services sector as a member of Deutsche Bank Group AG’s corporate center talent group. There, he worked in several business areas worldwide [Retail Banking, Asset Management, Corporate Investment Banking, a subsequent cooperation project with Canadian Imperial Bank of Commerce (CIBC), Bond Trading TSE Toronto, Management Information system CIBC Ontario, CBOT Chicago, Deutsche Bank AG, Inhouse Consulting Europe]. In conjunction with a restructuring of the global internal audit function, he joined the corporate center group audit team. After being part of the reorganization team for the IAA, he was a senior audit team leader and project methodology leader in the chief of staff’s group audit team.

Key skills include

  • Audit Executive Coaching
  • Executive Training for Board Members
  • Integrated Audit Risk Centric Approach® (IARCA) [originator]
  • HiANCA – Brain Research Audit Methodology®
  • Senior Expert for European Banking Regulation
  • Systemic Coaching Expert

Language Skills

  • German native speaker
  • English business fluent
  • Spanish business fluent
  • French very good
  • Russian good

Further Roles & Responsibilities

  • Chairman of the Audit Challenge Conference Board
  • Executive Facilitator of the Audit Excellence Group
  • Chairman of the Audit Innovation Award Jury
  • Executive Facilitator of the Audit Excellence Group
  • Chief Editor till 2015 of double blind journal >Audit, Risk, Compliance<, Bankverlag Köln
  • Publisher of the book series “Internal Audit Strategy”
  • Vice President of the German Association of Business Economists
Tracie Marquardt

Tracie Marquardt
CPA, Senior Management Trainer, Audit Research Center | ARC Institute
Bachelor of Arts, Honours Chartered Accountancy Studies

Since 2005, Tracie has trained hundreds of internal auditors from Germany, Europe, Africa and the US to communicate more effectively on an international stage. As a result, these auditors are able to communicate their key messages more clearly, concisely, and persuasively, resulting in agreement, action and positive change. Specialties include audit report writing, global communication competence, interviewing skills, reconciling findings with auditees, and presenting powerfully. Tracie is a former external auditor (Deloitte) and internal auditor (HFCL) from Canada, with 10 years’ experience in the financial industry in Canada and the U.S.

Key skills include

  • Training, coaching and consulting internal audit for global communication skills
  • Designing training programmes that combine skills learning with culture and language to ensure success of the participants working internationally
  • Designing, creating and delivering customised, interactive workshops that bring measurable results for management
  • Providing feedback and distance coaching to internal auditors on actual audit reports and training case studies
  • Deep understanding of stakeholder requirements, audit report objectives, communication interactions within the audit process, and related challenges

Significant Projects/Audit Communication Skills

  • 2010-2017: Delivering a customised Audit Report Writing and Communication training programme to the Internal Audit within the European banking system. Over 250 auditors from 21 countries have participated to date.
  • 2012-2017: Coaching & Training worldwide acting enterprises, with teams on four continents in audit report writing and communication strategies based on latest brain research results.
  • 2015-2016 Trained, coached and provided consulting services for 40 auditors including 5 Heads of Audit at a top German financial powerhouse as they overhauled their report writing methodology
  • 2014-2015 Trained the Internal Audit team of a DAX30 medical device company on Audit Report Writing, including individual & team coaching, and development of an Audit Report Writing Style Guide. Reduced reporting review time by more than 50%.
  • Deliver Report Writing and Interviewing skills workshops to DIIR clients since 2005.
  • 3 years as senior auditor in Canada for a Schedule B lender, reporting directly to U.S.
  • 4 years external audit in the financial industry with Deloitte in Toronto

Language Skills

  • English native speaker
  • German intermediate spoken

Other

  • Vice President Education, Heidelberg International Toastmasters Club, affiliated with Toastmasters International
Peter Duscha

ARC Institute Profile: Senior Engagement Manager

Dipl. Math. Peter Duscha,
CIA, CCSA, CRMA, Quality Assessor (DIIR)

Peter Duscha is a very experienced senior engagement manager specialised in audit methodology, project management, and risk management. As an experienced auditor himself, he is able to execute and teach different practical situations in a prepared manner. His over 14 years of work experience for different internal audit departments in IT Audit, Operations Audit, Business Audit, and Risk Management Audit make him an professional counterpart.

A team oriented and dynamic mathematician (MSc equivalent), Certified Internal Auditor (CIA), and Quality Assessor accredited by the IIA. Experienced in different audit assurance and consulting assignments, with excellent communication skills. An expert in audit strategies and risk assessment, specialising in auditing risk management systems. A confident and efficient audit and project manager. He has written numerous articles about audit methodology and co-written an audit methodology book about IT-Audit.

Key skills include

  • Innovative trainer for audit methodology, project-, and risk management audit
  • Coodination and execution of risk management audits
  • Coordination and execution of quantitative finance audits, risk model audits
  • Extensive audit experience including planning, executing, supervising, and reporting
  • Broad mathematical knowledge in various areas
  • Senior experience in projects and project management
  • Developing and introducing of risk oriented strategic audit planning methods
  • Leadership experience

Significant Projects/Project management

  • Key subject matter expert for integrated process auditing
  • Key subject matter expert for regulatory subjects, especially MaRisk, EBA Guidelines
  • Managing a quality reviews of the internal audit function
  • Developing a quality reporting for the internal audit function
  • Drafting of an internal audit manuals
  • Implementing an internal audit function for a finance holding company
  • Developing process frameworks
  • Support with the development of an IT infrastructure security framework
  • Development and implementation of new processes in Internal Auditing and a risk oriented audit planning method, drafting of a manual for Internal Auditors
  • Implementation of a management system for the audit department (for planning, controlling, and reporting)
  • Implementation of new regulatory requirements (MaRisk) for the audit function
  • Execution and management of audits

Language Skills

  • German native speaker
  • English fluent
  • Japanese advanced
  • French basic

Terms of participation and price

Each open training day is 890,- Euro plus VAT when booking the modules individually. Inhouse training conditions are based on individual pricing and travel expenses. After receipt of your registration you will receive a confirmation of registration with invoice. Please pay the registration fee directly after receiving the invoice. The registration fee does not include 19 % VAT.  The price includes participation in the lectures of the booked event, lunch, coffee breaks and seminar documents.

How can we support you?

At a glance

Target audience:
Employees and managerial staff from the internal audit function

Methodology:
Interactive workshop, discussion, game-theory strategy analyses according to US-American mathematician John Forbes Nash, Jr., practical exercises, case studies, retrospective summary

Training / Training / Consulting period:
Bookings are based on an audit-situation analysis as well as a personal preliminary meeting (workshops without implementation generally cover 3-5 days of instruction).

Contact:
Would you like more details about ARC’s Audit Training & Consulting Services, or do you wish to book an appointment with its team? Please address your e-mail inquiry to Info@ARC-Institute.com or phone us at +49-2159-6945-904

Registration