Common audit findings8/2/2023 ![]() ![]() the northerly route taken by the Titanic, close to an icepack, the speed of the ship, the inadequate look-out arrangements and commercial imperatives that encouraged a northerly route in April, rather than, say, June or July) and then the contributing causes – that ‘set the stage’ for the problem to occur (i.e.the immediate cause – the thing that obviously led to the problem (i.e.Needless to say, this requires the ability for the audit team to ‘take a step back’ in relation to what they have found and to learn how to combine issues, but I am seeing this become an increasing common practice within audit teams.įirst, we must be disciplined when we talk about what caused an incident, issue or gap and robust RCA distinguishes between three different types of cause: These techniques yielded a number of important benefits the first being a clearer basis to write shorter audit reports for example: a dozen issues found might be due to just five root causes and if the findings are written in this way, action plans will be more impactful, address key issues and enable internal audit to write a shorter audit report. Later, when I was global head of internal audit for AstraZeneca we became interested in lean/agile ways of working – which incorporate two key root cause techniques – the five whys and the Ishikawa (fishbone) diagram. a growing interest in risk culture and a realisation that effective root cause analysis is an important ‘gateway’ into this area.Īfter a career in finance, my first serious interest in RCA came when I worked in HR, helping to make change programmes more successful.an increasing sense within audit (and risk and compliance) teams that they are seeing the same, or similar, issues over and over again (Groundhog Day).an IIA practice advisory note that states that IA teams are failing to add value if they simply ask management to fix problems without addressing the underlying reasons that caused the problems to arise.the 2017 IIA IPPF requirement that internal audit should be insightful, proactive and future focused.The reasons for the growing interest in RCA are multiple: While this article provides a crash course in the key points concerning RCA for internal audit teams, it may also be of interest for those in risk, compliance and other functions. I’ve been running courses on root cause analysis (RCA) for over five years for the IIA across Europe as well as on an in-house basis. ![]() We'd suggest that you use this as a guide when allocating yourself CPD units. One hour of learning equates to one unit of CPD. Studying this technical article and answering the related questions can count towards your verifiable CPD if you are following the unit route to CPD and the content is relevant to your learning and development needs. An introduction to professional insights.Virtual classroom support for learning partners.Becoming an ACCA Approved Learning Partner.
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