CATALYSTS FOR IMPROVEMENTS

COVID-19 turned not only our everyday life but also business operations upside down, and that includes how organizations assess and test internal controls. Business processes have had to change in response to the pandemic and our organization has played a big role to strengthen the Internal Audit department to navigate through these challenges.

When it comes to risk management and compliance, most organizations operate on a 3 Lines of Defense model, in which operational management, compliance, and internal audit work together in pair to assess and mitigate risk and manage controls and compliance.

In Blowplast Limited, Internal Audit department provides valuable & objective assurance by assessing and reporting on the effectiveness of governance, risk management, systems & control processes to help the business achieve its vision and compliance objectives.

Blowplast Internal Audit department slogan, Catalysts for improvements, is driven by Independence, Transparency & Accountability. Our department slogan takes inspiration from the organisation’s objectives, values and beliefs; and put to work in the following phases of internal audit activities explained below:

1. Planning: A yearly plan is prepared for various audits to be carried out during the year. Each audit has a well-defined scope and objectives.
2. Fieldwork: This is actual act of auditing where the audit plan is executed. It usually includes interviewing key personnel to confirm an understanding of the process and controls, reviewing relevant documents and artifacts, testing the controls for a sample over a period of time, documenting the work performed, identifying exceptions and recommendations.
3. Reporting: A final report is prepared clearly and concisely to avoid misinterpretation and to encourage the management to actually read and understand the report. The findings are accompanied by recommendations that are actionable and lead directly to process improvements.
4. Management Response: The final phase is an important one; the management ensures that the recommendations have been implemented to address the findings identified. This process includes appropriate follow-up with process owners needing to implement the recommendations as well as Board oversight of the company’s overall status in addressing findings identified by internal audit.

Written by

Mitesh Hirani, Internal Audit Manager