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Date Created: 12/21/15
CASE STUDY A CENTRAL BANK DEPLOYS METRICSTREAM’S INTERNAL MetricStream AUDIT SOLUTION Overview Federal (or Central) bank is primarily responsible for stabilizing the▯ national currency. The bank imple- ments the monetary policy, and maintains the financial stability of the nation. In the charter, the bank’s senior management gives the internal audit department the right of▯ authority and initiative, and empowers it to evaluate the bank’s financial statements, oversee its risk manage- ment system, reduce the gaps in risk controls, recommend norms and proce▯dures for stronger internal controls and assist the senior management to identify, measure, mitigate, monitor, and communicate the bank’s key risk exposures. Challenge The audit department followed manual audit processes, spending countless▯ hours preparing work papers and audit reports along with associated documentation. With incre▯ased workload, the bank identified significant challenges such as audit inefficiencies, errors, ▯unreliable reporting, redundant efforts, inflated costs, and data inaccuracies. Disintegrated audit proc▯esses, lack of collaboration Benefits between the departments, manual and inefficient follow-up on action item▯s, and timeconsuming data gathering process - all translated into limited reporting and data ▯analysis. Increased regulatory, Improved Audit Efficiency: The average audit time legal, and risk management obligations further underscored the need for ▯an integrated Audit Manage- has gone down substantially. The automated work- ment Solution. flows help the bank to unify all the audit-related activ- ities, data and processes. Systematic and paperless The bank’s Chief Internal Auditor explains, “With 90+ cross-organizational processes, collaboration audit process across the enterprise with standardized consistently became a challenge for us. Our auditors frequently complain▯ed about spending too much data collection has further eliminated audit errors and inconsistencies. Efficient time tracking, email based time performing administrative work, such as scheduling audit programs, ▯collating audit findings, col- notifications and alerts, and risk assessment method- lecting audit completion reports, and preparing the risk analysis. In ad▯dition, each of our departments ologies allow the bank to implement the industry-best had its own processes for conducting and issuing audits. We wanted a standardized, company-wide practices for efficient audit execution. audit approach that could unify all the audit efforts across the bank.”▯ Enhanced Visibility: The bank has complete visibility The need of the hour was a centralized audit management framework that c▯ould automate and man- into the audit process and metrics. This leads to bet- age entire audit life cycle - from planning and scheduling audits to dev▯eloping standard audit plans, ter risk management and assured compliance. The collecting field data, developing and reviewing audit reports and recomm▯endations, and implementing transparency has made audit management a predict- audit recommendations and remediation. Going forward, the senior managem▯ent looked to leverage able process, while improving audit findings and lowering risk probability. the solution to identify gaps or inefficiencies in the bank’s risk coverage; resolve compliance issues; enable fraud risk assessments; build continuous audit capability; influe▯nce continuous monitoring techniques; improve risk management and processes; and reduce audit comp▯lexity and costs. Integrated Audit and Risk Management: The solu- tion supports comprehensive risk assessment, based on parameters such as severity and likelihood of Solution occurrence. With computations based on configu- rable methodologies and algorithms, auditors get a The bank evaluated various audit management solutions in the market; the benchmark being robust- clear view into bank’s risk profile. ness of the solution, quality of the application, and a lower cost of ow▯nership. After extensive evalu- Clarified Personal Accountabilities, Roles & ation, MetricStream emerged as their preferred choice. Recalling the process of selection, the Chief Responsibilities: The MetricStream solution not only Internal Auditor says, “We tested MetricStream, and found that it addressed all our needs, in ter▯ms of streamlines the bank’s audit processes, but also al- unifying the audit universe, improving the effectiveness of internal aud▯it function, and streamlining the lows auditors to better incorporate accountability into internal control and governance processes.”: the work culture of the department. The MetricStream’s Audit Planning solution enabled the bank to create a riskbased aud▯it plan with a Ensured Continuous Risk Management Learning: well-defined objective and scope; in tandem with quality, compliance and risk management pro- With the MetricStream solution, the bank’s business cesses. The solution organized audits in a logical structure, matching t▯he audit steps from IAD’s Audit units can share their experience and best practices - internally and externally. Thus ensuring, continuous Procedure Manual. It also defined the evaluation and pass/fail criteria, ▯checklists, and the tasks that risk management learning. This supports innovation, needed to be performed for executing the audit. Audits could now be sche▯duled periodically, or trig- capacity building and continuous improvement, and gered ad-hoc. fosters an environment that motivates people to learn. The MetricStream solution improved the audit team’s productivity by enabling it to unify and analyze cross-departmental audit data, quickly and efficiently. The team could now access data directly from a centralized data repository; have multiple auditors working simultaneo▯usly; and use automated audit tests. The MetricStream solution enabled auditors to record, track, and monitor▯ qualitative or quantitative audit findings across different business groups. The findings could be s▯tored along with detailed observations and recommendations in predefined formats. A unique offline▯ capability allowed auditors MetricStream to enter audit findings in notebook, computers, or handheld devices at r▯emote field sites. Further, the Why MetricStream time-tracking capability captured the time spent in auditing for optimal res▯ource utilization. Centralized Audit Management Platform to automate The MetricStream’s Audit Review solution routed audit findings, observation reports, and auditors’▯ and integrate the audit process recommendations for review and subsequent actions. The ACL analysis was ▯automatically attached to the respective work paper record in an electronic format. Findings we▯re sent to the audited entity Powerful reporting for audit data analysis as well as to seek responses or issues observed. The application provided built-in ▯workflows for reviewing risk reporting responses for approval or rejection with options to initiate remedial ac▯tions for undesirable variations and trends, and to schedule follow-up audits. On-line and offline access to “work-inprogress” Complete integration of the Audit department with “The MetricStream Solution has exceeded our expectations in every way. We are par- financial controls management, IT risks and compli- ticularly impressed with the accuracy and reliability of the audit findi▯ngs, which provide ance management us a valuable and well referenced insight into our environment. Based on▯ the recommen- Low total-cost-of-ownership dations we have implemented improved operational practices to successful▯ly mitigate potential risks.” says the spokesperson of the Company. The MetricStream Reporting solution provided comprehensive capabilities to the bank for co▯mpiling audit reports and work-papers. It allowed access to the bank’s data and history, and performance analysis of auditors. Graphical executive dashboards and flexible report▯s with drill-down capability provided statistics on a variety of parameters including audited entitie▯s, audit schedule and calendar, filed reports, and corrective and remediation actions triggered. Planning & Scheduling Audit Remediation Risk Contro Matrix User Homepage Final Audit Report Audit Fieldwork Workpaper Review & Completion For more information, visit www.metricstream.com Copyright 2011. All Rights Reserved.
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