Internal Auditing Services
Our firm has been engaged in the field of internal auditing for over 25 years. We serve as the internal auditors of publicly traded companies in Israel and abroad, government corporations, non-profit organizations, kibbutzim and kibbutz enterprises and private companies. Our varied experience of many years covers almost all sectors of the economy and enables us to conduct internal audits for almost any entity.
The firm’s working methods and emphases in conducting internal audits derive from a view of the broadest interests of the audited entity. The work is planned in cooperation with the management of the audited entity, with the aim of deciding how to improve the functioning efficiency of the audited entity and to control the processes within it. We aspire to have our work serve as the long arm of the audited entity’s management in order to ensure proper execution of its policies and procedures.
Internal Audit Working Method
When commencing to work with the audited entity, and thereafter every few years, it is customary for the internal auditor to perform a risk survey in order to map out the control risks in the organization. The survey is required to enable both the auditor and the Company’s management to become familiar with the weaknesses and risk areas in the control systems of the audited organization. The risk survey is conducted in accordance with professional standards customary among developed countries. The work method used for performing the survey relies on studies concerning risk factors, and the probability and intensity of risk scenarios.
The internal auditing work is based on a multi-annual work plan derived from the results of the survey. The orders of priority in the multi-annual program, which are usually established jointly with the management of the audited entity, the audit committee and the internal auditor, dictate the annual work program including focusing on fields where economy and efficiency can be achieved.
The proposed annual work plan is submitted to the audit committee of the audited entity for discussion and approval. The audit committee discusses and approves the subjects of the annual work plan, the priorities for execution and the annual budget for the audit work.
During our work we make sure to share our findings and conclusions with the relevant managers in the organization participating in the audit process. Consequently, the report is submitted by us to the management of the audited entity usually after clarification of differences of opinion with those responsible for the audited field, so that the conclusions can immediately be implemented.
Following the report, the management of the audited entity and the audit committee adopt a series of decisions with respect to the required changes. The process ends from the aspect of the internal audit after following-up implementation of the decisions adopted subsequent to the audit report.
The Internal Audit Team in our Firm
The internal auditing work in our firm is performed, with ongoing supervision and direction, by the personnel of the department specializing in internal auditing. These persons engage solely in internal auditing, and they possess rich experience and appropriate education in this field. Internal auditing work, by its very nature, demands relatively high involvement by the partner. Accordingly, a partner is appointed for each audited entity, who is responsible for the work of the team, and closely directs and monitors their work.
The specialization of the internal auditing team in this field alone enables them to perform the most professional work with maximum efficiency. The experience accumulated by the partners and the department personnel in the field enables them to deal with the naturally sensitive issue of internal auditing pertinently and clearly, with no personal harm to the members of the audited entity.