Editorial

Chairperson's Communique
Pooja Dharewa 1
President's Communique
Burzin Dubash 2
Note from the Chief Editor
Punam Sharma 3
Our Contributors 4-5

Expert Voices - Leadership Series

The Path to Excellence: Key to Building a Remarkable Career in IA
Anil Ajmera & Pooja Dharewa 9

Cultivating Strong Banking Relationships

Srinivas Subramaniam 12

The Insight Exchange - Author's Canvas

The Role of IA in Championing DEI
Ritu Sethi 18
The Hidden Cost of Echo Chambers
Palack Jain 21
IA Role in Mitigating Discrimination & Harassment
Lakshmi B. 24
Building Inclusive Cultures: How IA Can Champion Diversity
Lalitha Satheesh 29
The Human Algorithm: Diversity & AI
Ashutosh Upadhyay 32
Transform Your Workplace by Transforming Yourself
Sakshi Shree 35
The Hybrid Shift: Evolution of IA
Aditya Maheshwari 38
From Chaos to Clarity: Harnessing the Power of Data Quality and Governance
Dharmendra Kapoor 43
The Human Element in Auditing: How Relationship Shape IA Outcomes
Aditya Kumar S 46
Why Boards Must Pay Closer Attention to Risk & Governance
Burzin Dubash 49
 Women's Forum
From Brushes to Balances
Deepika Santdasani 51
Prioritising Wellness on Women's Day
Deepika Santdasani 53

Emerging Minds - Students' Forum

Role of IA in Enhancing Good Corporate Governance
Vaibhav Sachdeva 55
Crossword: Challenge Your Mind, One Square at a Time 59
Data Analytics: Your Secret Weapon Against Risk
Srishti Sahni 60
IIA Quiz 64
Sustainable Sourcing - Risks, Advantages & Focus Areas
Sanchita Banerjee 66

Beyond Compliance (Out-of-the-Box)

Astrologically – Longevity
Sidheshwar Bhalla 70
Strategic Optimisation: A CFO’s Guide to Pricing, Margins & Inventory
Rajangam Ramasubramanian 75
Books That Matter 73
Humour In Action 74

IIA India Happenings

IIA India National Conference Announcement 6
IIA India Event Schedule: Dec-Jan 7
IIA India Training for Bank of Maldives 15
Tackling Fraud: IIA India Bombay Chapter Hosts 4th Anti-Fraud Summit 16
IIA India Partners with Air India: A New Era of Travel Benefits for Members 20
Redefining Trust: IIA India Bangalore Chapter's Tech Conference 23
IIA India CEO Inspires Future Internal Auditors at EThames College 34
Engaging Webinar on Proactive Fraud Detection for Internal Auditors 37
IIA India Conducts Training at NADFM on High-Impact Audit Reporting 45
Virtual Power Symposium Explores Digital Transitions Towards Net Zero 58
IIA Enhances IA Effectiveness for SBI 77
IIA India Membership Benefits 78
IIA India Member Referral Program 79
IIA India Delhi Branch AI Conference 80
Chairperson’s Communique
BEHIND THE SCENES
Editorial & Design Team

Championing Change: Celebrating

DEI in Our Year-End Edition
Punam Sharma
Chief Editor
[email protected]

Pooja Dharewa
Chairperson
IIA India Publication Committee
[email protected]

Dear Members and Readers, Jitesh Khushalani

Deputy Editor
As the year comes to a close, it is with immense pride that we bring you the [email protected]
December edition of the IIA India’s Internal Audit Today magazine, themed
around Diversity, Equity, and Inclusion (DEI).

This theme reflects progressive values and the foundation upon which resilient
organisations and robust internal audit practices are built.

In today’s dynamic environment, DEI has transcended beyond being a Dhavaal Ashar
corporate buzzword. It is now a critical pillar in shaping ethical governance, Deputy Editor
fostering innovation, and driving sustainable growth. For internal auditors, [email protected]
this theme is particularly significant. Our role demands an unbiased lens,
cultural sensitivity, and a commitment to understanding the diverse nuances
of the organisations we serve. This edition dives deep into the challenges and
opportunities associated with embedding DEI in organisational frameworks.
From case studies that highlight success stories to articles that explore the
evolving role of auditors in promoting inclusive workplaces, this issue aims to
provide you with actionable insights and inspiration. Ranganathan P K
Quality Reviewer
[email protected]
As auditors, we must ensure that our audit plans and processes align with the
principles of DEI. Beyond compliance, we have a unique opportunity to act
as agents of change—advocating for diverse leadership, equitable practices,
and inclusive strategies. By doing so, we enhance the value of our audits and
contribute to creating workplaces where everyone can thrive.

As we celebrate the strides made in 2024, let us carry forward the spirit of Chitra Singh
inclusivity into the new year. Together, we can lead the way in making DEI an Consultant Editor
[email protected]
integral part of our professional and personal journeys.

Wishing you and your loved ones a joyful and inclusive holiday season!
Warm regards,

Pooja Dharewa
Sandeep Singh
Design Head
[email protected]

INTERNAL AUDIT TODAY EDITORIAL | 1

 President’s Communique

Leading with Purpose: Making DEI

a Cornerstone of IA Excellence
Dear Members,
As I pen my thoughts for this edition of the or sustainability-driven business
Internal Audit Today, I am reminded of how models. Tackling these requires a
Internal Audit (IA), at its very core, is about team that includes tech enthusiasts,
fostering trust, transparency, and resilience. Today, ethical thinkers, environmentalists,
as we stand at the crossroads of a rapidly changing and operational veterans. This Burzin Dubash
global landscape, one theme has emerged as both mosaic of perspectives enables IA to President, IIA India
a challenge and an opportunity—Diversity, Equity, remain future-ready and relevant.
and Inclusion (DEI). DEI is not just a buzzword
Creating Inclusive Audit Teams
or a fleeting trend; it is a transformative principle
that shapes the way we work, think, and thrive as To embed DEI into the DNA of internal auditing, we
professionals. In the world of internal auditing, must go beyond intent and take action:
where the scope of our responsibilities spans
Recruitment: Actively seek talent from
governance, risk, and control across diverse
underrepresented groups, ensuring the broadest range
industries and geographies, embracing DEI is of perspectives.
more than a moral imperative—it is a strategic
advantage. Development: Provide equal opportunities for growth
through mentorship programmes, cross-functional
Collaboration as Our Keystone exposure, and leadership roles.

Internal auditing has always been a collaborative Belonging: Foster a culture where individuals feel safe
endeavour. Our role requires us to interact with expressing their ideas and challenging norms without
individuals across functions, hierarchies, and fear of bias.
cultural backgrounds. In this interconnected The Road Ahead
environment, collaboration thrives when
inclusivity is prioritised. Diverse teams, united by As we look to the future, let us view DEI not as
a shared purpose, are better equipped to identify an endpoint but as a journey—one that requires
blind spots, challenge assumptions, and bring continuous commitment. As an institute, we have
innovative solutions to the fore. As auditors, we the responsibility to lead by example. By making
must build environments where every voice is DEI a cornerstone of our practices, we can elevate
valued, and every perspective contributes to the the effectiveness of internal audit and inspire the
collective strength of the team. organisations we serve to follow suit.

Diversity of Thought: The Catalyst for

Innovation Let us remember that our strength lies in our ability to
see beyond boundaries, collaborate beyond differences,
The complexity of modern business demands and innovate beyond conventions. Together, as a
that internal auditors bring more than technical diverse and inclusive community of internal auditors,
expertise to the table. We must cultivate diversity we can rise to meet the challenges of tomorrow and set
of thought, drawing from varied experiences, a benchmark for excellence.
skills, and worldviews. A team that reflects a
spectrum of cultural, generational, or professional Kind regards
perspectives can uncover risks and opportunities
that a homogenous group might overlook.
Take, for instance, the challenges posed by
Burzin Dubash
emerging technologies like artificial intelligence

2 | EDITORIAL INTERNAL AUDIT TODAY

 Note from the Chief Editor

Building Bridges & Fostering a

Culture of Belonging!
Dear Readers,
I hope you had a wonderful Diwali celebration with is being invited to the dance.
your family and loved ones. It’s December, when we Inclusion is being asked to
all look forward to the joyful festivities of Christmas dance. Equity is being allowed
and the New Year. In this spirit, I wish you abundant to choose the music.” Cynthia is
love, joy, hope, and success as the festive season known for her insightful quotes Punam Sharma
enriches your lives. on topics like diversity and Chief Editor, Internal Audit Today
inclusion, emphasising the importance of creating
This season, our theme is Diversity, Equity and equitable environments.
Inclusion(DEI), a vital foundation for fostering
thriving workplaces and successful businesses. DEI In this edition of Internal Audit Today, I hope
plays a significant role in promoting social cohesion you find engaging and informative content that
and cultural development. As we explore ways to offers diverse perspectives on enhancing value
enhance our organisational culture, integrating DEI within internal audit. From unique insights of
into our core values is essential for making a positive industry experts about internal auditing, building
impact. Think of organisational culture as water; it strong banking relationships to data analytics
requires continuous effort and attention to achieve and the importance of DEI in digital marketing,
the right balance and flow, just as we must do with there is something for everyone. We also explore
DEI. the evolution of internal audits in a hybrid work
model, the creation of inclusive cultures through
The importance of DEI is increasingly recognised mindfulness, and real-world examples of how
among candidates and employees alike. As I read companies integrate DEI into their practices.
in a post recently, three-fourths of job seekers Additionally, we touch on the importance of finding
and employees consider DEI a major factor when life balance, longevity and prioritising wellness for
choosing a company or employment. the mind, body and spirit.

DEI serves as a powerful catalyst, enhancing We bring you what’s been happening at IIA India
every facet of our work and has the potential to since our last edition and a brief on what’s in store!
significantly influence overall outcomes. With all the
excitement and frenzy surrounding DEI, I urge us all I would like to express my heartfelt gratitude to all
to reflect on the pitfalls of promoting it merely for our contributors whose insights and expertise have
appearances. If treated as just a checkbox activity, its significantly enriched the content of this publication.
true value is undermined. Your dedication enhances our discussions and
helps us provide valuable resources to our readers.
DEI functions at a mindset level, subtly influencing We are thrilled by the valuable contributions from
our environments. It resembles a creeping vine the student forum. Additionally, I would like to
that grows unnoticed, potentially obstructing the thank our editorial and design teams for their hard
progress of surrounding plants. We have the choice to work in bringing this edition together. Your efforts
nurture its growth or allow it to become unwelcome. are truly appreciated!

A recent news report highlighted that Foxconn, an We are grateful for your support and trust that
Apple supplier, instructed hiring agents in India who you will enjoy this edition filled with industry
were recruiting iPhone assembly workers to remove knowledge, wisdom, wellness, and a touch of
age, gender, marital criteria, and the manufacturer’s humour to brighten your day!
name from job advertisements. An earlier
investigation allegedly found that Foxconn’s Indian
hiring vendors excluded married women from jobs Happy Reading!
at its India iPhone assembly plant, contravening
Apple and Foxconn anti-discrimination policies. Punam Sharma
I love how Cynthia Olmedo, a career enthusiast,
eloquently articulates the essence of DEI: “Diversity

INTERNAL AUDIT TODAY EDITORIAL | 3

 Our Contributors

Pooja Dharewa Chitra Singh Ritu Sethi Palack Jain

In a compelling Chitra Singh is a Ritu Sethi’s article, “The In her article, “The
discussion, Pooja seasoned journalist Role of Internal Auditors Hidden Cost of Echo
Dharewa, Chairperson of and editor, bringing in Championing Chambers: Why DEI
the IIA India Publication over 37 years of diverse DEI,” highlights the Matters in Digital
Committee, converses experience to her craft. significance of Diversity, Marketing,” Palack Jain
with Anil Ajmera, Chief In her current role, Equity, and Inclusion examines how echo
Internal Auditor at Hikal Chitra leverages her (DEI) in creating a chambers hinder brand
Ltd. His 29-year career expertise to highlight resilient workforce and visibility and market
principles emphasise key developments at improving business reach. As co-founder of
continuous learning and IIA India, delivering outcomes. Drawing Algohype Analytics, she
adaptability. Dharewa’s polished and cohesive on her 19 years of shares lessons from her
article, “The Path to news updates. She experience, she targeting missteps and
Excellence: Key to has curated various emphasises how effective advocates for broader
Building a Remarkable sections, especially DEI strategies foster strategies to engage
Career in Internal news, books and innovation. Turn to diverse customers. Turn
Audit,” reveals these humour bytes. Enjoy Page 18 to Page 21
success strategies. Turn reading!
to Page 9

Lakshmi B Srinivas Ashutosh Upadhyay Sakshi Shree

Subramaniam
Lakshmi B’s article, In “The Human In “Transform
“Internal Audit Role in Srinivas Subramaniam’s Algorithm: Why Your Workplace by
Mitigating Discrimination article, “Cultivating Diversity is AI’s Missing Transforming Yourself!
and Harassment,” Strong Banking Code,” Ashutosh A Mindful Approach
explores the essential Relationships - Upadhyay highlights the to Inclusion,” Sakshi
function of internal audit Strategic Insights for importance of diversity Shree emphasises that
in combating workplace CFOs,” highlights the in AI development. He true transformation
discrimination and critical role of strong argues that homogeneous starts within. He uses
harassment. As Head of banking relationships teams lead to biased the analogy of a stone
Audit at Padakannaya for CFOs in today’s technology, advocating creating ripples in a
and Co., she highlights financial landscape. for inclusive teams to pond to illustrate how
how effective auditing He offers strategies to enhance innovation individual change fosters
practices can improve enhance financial terms and create fairer, more workplace inclusion,
workplace culture and and services, drawing effective AI systems drawing on his extensive
uphold ethical compliance from his 35 years of essential for ethical experience as a civil
across industries. Turn to experience. Turn to solutions in today’s tech servant, mystic and
Page 24 Page 12 landscape. Turn to mentor. Turn to Page 35
Page 32
4 | EDITORIAL INTERNAL AUDIT TODAY
 Our Contributors

Aditya Maheshwari Dharmendra Kapoor Aditya Kumar S Deepika Santdasani

In “From Chaos to In “The Human Deepika Santdasani,
In “The Hybrid Clarity: Harnessing the
Shift: Evolution of Element in Auditing: Senior Manager at
Power of Data Quality How Relationships Protiviti India, explores
Internal Audit,” Aditya and Governance,”
Maheshwari explores CA Dharmendra Shape Internal Audit parallels between IA
how hybrid and remote Kapoor emphasises Outcomes,” CA Aditya and makeup artistry
work models transform the importance of data Kumar S explores in “From Brushes to
internal audit processes. quality and governance the balance between Balances.” Her second
He discusses the benefits in today’s information- technology and human article, “Shifting the
for employee morale driven world. He intuition in auditing. He Investment Paradigm,”
and the challenges for highlights challenges discusses how personal highlights the
audit teams, highlighting in maintaining relationships can affect importance of wellness.
essential tech tools that data accuracy and auditor objectivity. She leads the Women’s
enhance remote auditing consistency. Turn to
amid this operational Turn to Page 46 Circle at IIA India’s
Page 43 Hyderabad Chapter.
shift. Turn to Page 38
Turn to Pages 51 & 53

Lalitha Satheesh Sidheshwar Bhalla R. Ramasubramanian

In “Building Inclusive Sidheshwar Bhalla’s In “Strategic Optimisation:
Cultures: How Internal article “Astrologically A CFO’s Guide to
Audit Can Champion – Longevity” examines Pricing, Margins &
longevity through Indian Inventory,” Rajangam
Diversity,” Lalitha Ramasubramanian
Satheesh highlights mythology and astrology, identifies six control
the crucial role of focusing on influences points—top-line revenue,
internal audit in from Chiranjeevi and gross margins, net margins,
promoting diversity, birth charts. With over 20 finance costs, inventory,
equity, and inclusion years of risk management and accounts receivable—
within organisations. experience and as a that drive manufacturing
Drawing on her 20 former President of growth. With over 30 years
years of experience, she The Institute of Internal of experience, he enhances
advocates integrating Auditors, India, he shares decision-making for
DEI principles into unique insights blending profitable growth. Turn to
expertise and astrology. Page 75
audit practices to foster
inclusive environments. Turn to Page 70
Turn to Page 29

INTERNAL AUDIT TODAY EDITORIAL | 5

6 | EDITORIAL INTERNAL AUDIT TODAY
INTERNAL AUDIT TODAY EDITORIAL | 7
 The Path to Excellence:
Key to building a Remarkable Career in IA

achieving results; it involves recognising and

valuing each team member’s perspective,
strengths and well-being. Anil made a special
mention of the values of empathy, gratitude, and
listening. Anil’s commitment to mentorship
and team empowerment is a cornerstone of his
leadership style, transforming challenges into
opportunities for growth and collaboration.
Anil Ajmera Pooja Dharewa
Anil talked about the essential skill of
Leadership is not just about expertise—it’s about balancing stakeholder relationships, which
he believes is critical for any internal audit
passion, integrity, and the ability to inspire change.
This philosophy defines Mr. Anil Ajmera, Chief leader in today’s rapidly changing business
Internal Auditor and Risk Coordinator at Hikal landscape. His consultative mindset is evident
Ltd. In an insightful conversation with Ms. Pooja in his approach to internal audits. “We aim
Dharewa, Chairperson of the IIA India Publication to provide recommendations and solutions,
Committee, Anil unveiled the principles guiding his not just point out issues,” he explained. This
extraordinary 29-year career. perspective has transformed internal audit
from a compliance function into a driver of
Equipped with diverse qualifications— CIA, meaningful improvements for the business.
CPA, CFA, MBA, complemented by a degree
in engineering—Anil has mastered the art of Effective communication and relationship
combining technical acumen with empathy and building are at the heart of Anil’s success.
diplomacy. This diverse educational background has He balances assertiveness with diplomacy,
equipped him with a robust foundation for various ensuring internal audit findings are
roles, including internal auditing, risk management, presented with confidence and constructive
insurance, accounting and plant operations. recommendations. His ability to align audit
objectives with organisational goals has earned
“There is nothing better than loving your work,” him trust as a strategic partner. He emphasises
he shared, highlighting how aligning passion open communication and positions internal
with one’s profession can transform challenges audits as opportunities for improvement rather
into opportunities and strengthen organisational than inspections. “Audit findings should lead to
bonds. He exemplifies how these qualities can actionable improvements,” he explains, aligning
drive positive change and strengthen relationships
within an organisation. His approach underscores
the importance of empathy and diplomacy, creating
a cohesive workplace culture while addressing
complex challenges.

Anil shared insights on the role of mentorship in his

life and career. He emphasised that gratitude is a glue
that binds a successful team together, a principle he
has embraced throughout his journey. He articulated
that his professional aim extends beyond merely

INTERNAL AUDIT TODAY LEADERSHIP SERIES | 9

audit outcomes with broader organisational goals to
create sustainable value.

Anil highlighted the importance of confidence

among internal audit leaders in presenting their
assessments, even when conveying complex or
challenging insights. Such confidence fosters
constructive dialogue on risks and improvements.

3. Building a Legacy of Excellence

Anil’s career is a testament to the transformative

power of passion, adaptability, and collaboration.
His leadership philosophy—rooted in integrity,
mentorship, and value creation—has redefined
the role of internal auditing in driving
organisational success. Anil remains an inspiring
example of how dedication to excellence and
The eight key elements of an effective internal
empathy can create a lasting impact.
audit function include:
4. Cultivating Skills and Collaboration
1. Leveraging IA for Enhanced Efficiency
Anil prioritises a collaborative mindset within
Anil’s leadership has been instrumental in his audit teams, fostering relationships across
addressing complex operational risks in the departments to provide constructive feedback.
manufacturing sector. His team’s ability to identify He underscores the importance of analytical and
inefficiencies and provide tailored recommendations problem-solving skills to address complex issues
has led to substantial cost savings and streamlined and deliver impactful solutions. This partnership-
processes. These outcomes, achieved through oriented approach ensures that internal auditing
collaboration with process owners and stakeholders, is seen as a trusted advisor.
underscore the value of internal audit as a partner
in organisational success. Anil highlighted the 5. A Strategic Vision
importance of strong analytical and problem solving
skills amongst internal auditors. This capability For Anil, internal auditing transcends pointing
allows them to dissect complex issues, uncover out deficiencies. His philosophy centers on
underlying problems and craft effective solutions building trust, adding value, and aligning
that enhance operational efficiency while ensuring audit strategies with organisational objectives.
compliance with industry standards. His commitment to fostering a culture of
transparency and collaboration underscores his
2. Fostering Transparency and Integrity belief in the transformative power of internal
audits.
Anil emphasised the importance of transparency
and openness in internal audit communication. 6. Establishing Respect for Internal Audit
Structured updates, risk-based discussions, and
early engagement with senior management ensure Anil champions aligning internal audit objectives
alignment with strategic priorities. “By demystifying with strategic goals to position the function as
the audit process, we have built trust and promoted a trusted advisor. “Transparency, fairness, and
a culture where audits are seen as opportunities for stakeholder engagement throughout the audit
growth,” claims Anil. process can create a constructive environment

10 | LEADERSHIP SERIES INTERNAL AUDIT TODAY

 on aligning sustainability goals with business
objectives. Additionally, they will evaluate risks
tied to technologies like AI and automation,
ensuring seamless implementation and
workforce adaptation.”

This candid exchange between two thought

leaders underscores how internal audit has
evolved into a vital business function. From
leveraging technology to expanding skillsets,
the profession continues to grow significantly.
As Anil Ajmera aptly said, curiosity and a value
where departments see audits as opportunities for
driven approach are essential to succeeding
growth rather than compliance checks,” says Anil.
in this dynamic field. With leaders like Pooja
and Anil championing the profession, internal
7. Cultivating Future Audit Leaders
auditing is well-poised to navigate future
challenges while continuing to add strategic
Internal audit isn’t always seen as glamorous, but it’s
value to organisations.
one of the most fulfilling careers for those who value
critical thinking and problem-solving, says Anil. He
focuses on talent development by mentoring his team,
About the author: Pooja Dharewa co-founded
promoting certifications like CIA and CISA, and
KD Practice Consulting, which specialises
facilitating 40 hours of annual training. He provides
in process and internal audit solutions to
stretch assignments, cross-functional opportunities,
enhance business efficiency. With extensive
and regular feedback to align career growth with
consulting experience, she helps organisations
organisational needs. This commitment ensures a
optimise operations and ensure compliance.
robust internal audit function capable of adapting to
As Chairperson of the Publication Committee
complex challenges.
at the Institute of Internal Auditors (IIA)
India, she promotes knowledge-sharing in the
8. Preparing for Emerging Challenges
audit community. Pooja is also involved in the
‘Padhao India’ initiative, empowering children
Anil envisions the future of internal audit evolving
in education and nation-building alongside her
from assurance to advisory, particularly in areas like
son. She can be reached at:pooja@kdpractice.
ESG, cyber threats and data privacy. He mentions,
com
“With increasing regulatory focus on sustainability,
internal auditors will assess ESG initiatives and advise

INTERNAL AUDIT TODAY LEADERSHIP SERIES | 11

 Cultivating Strong Banking Relationships
Strategic Insights for CFOs

flexibility of their financial products. Consider

a mix of traditional banks and alternative
financial institutions, such as credit unions or
online lenders, to find the most appropriate
partners for your needs.

Srinivas Subramaniam
Principal, CFO Centre India/UK Group
[email protected]

In today’s dynamic financial landscape, cultivating

robust banking relationships is crucial for the success
and stability of any organisation. The role of the
Chief Financial Officer (CFO) in developing these
connections is crucial. By fostering strong banking
2. Foster Open Communication
partnerships, CFOs can access better financial
terms, superior service, and valuable financial
A. Establish Regular Communication:
insights. This article provides a comprehensive
guide for CFOs seeking to enhance and strengthen
• Schedule routine meetings with your banking
their banking relationships.
partners to discuss your financial performance,
upcoming projects, and any potential challenges.
1. Understand Your Needs and Goals These meetings should be structured yet open-
ended to encourage candid discussions.
A. Assess Your Financial Needs
• Use these meetings as opportunities to provide
• Conduct a thorough analysis of your organisation’s updates on your business and to gather insights
financial requirements, including working capital, on market trends and new financial products.
investment plans, debt management, and liquidity Regular communication helps ensure that your
needs. bank understands the evolving needs of your
• Develop a detailed financial plan that aligns with business and can offer appropriate solutions.
your organisation’s strategic goals and financial
needs. This ensures that your banking relationships B. Build Personal Relationships:
support your business objectives and growth plans.
• Develop and maintain personal relationships
B. Identify Suitable Banking Partners with key banking contacts. Plan informal
meetings, attend industry events, and
• Research and identify banks that have expertise in consistently communicate through calls or
your industry or a proven track record of supporting emails.
companies like yours in size and scope.
• Evaluate potential banking partners based on their • Cultivating personal connections can facilitate
range of services, technological capabilities, and the smoother negotiations and quicker resolutions

12 | LEADERSHIP SERIES INTERNAL AUDIT TODAY

to any issues. Personal relationships often lead to in your negotiations. Being well-informed about
higher levels of service and more tailored banking the market landscape can help you secure more
solutions. favourable terms and conditions from your
3. Demonstrate Financial Stability and bank.
Transparency B. Tailor Financial Products:

A. Provide Accurate and Timely Information: • Work collaboratively with your bank to
customise financial products and services that
• Regularly share comprehensive financial statements, meet your needs. This could include tailored
forecasts, and key performance indicators with your loan structures, flexible repayment schedules, or
banks. Ensure the information is accurate, precise, customised cash management solutions.
and presented in a format that is easy to understand.
• Negotiate terms that align with your cash flow
• Transparency builds trust and allows your bank cycles and business model to optimise your
to understand your business needs clearly. It lets financial management. Ensure that your chosen
your bank provide better advice and support with a financial products support your operational
complete picture of your financial situation. needs and long-term growth plans.

B. Showcase Financial Health:

• Highlight your organisation’s financial strengths,

such as strong cash flow, low debt levels, or consistent
revenue growth. Explain your financial strategies and
how they contribute to your company’s stability.

• Discuss risk mitigation strategies you have

implemented, such as diversification of revenue
streams or hedging against market fluctuations,
to reassure your bank of your financial stability.
Demonstrating a proactive approach to risk
management can enhance your bank’s confidence in 5. Leverage Technology & Innovation
your business.
A. Embrace Digital Banking Solutions:

• Utilise your bank’s digital platforms for

streamlined banking operations, including
payments, cash management, and reporting.
Digital solutions can enhance efficiency, reduce
costs, and provide real-time insights into your
financial position.

• Ensure your team is well-versed in using

these digital tools to maximise their benefits.
4. Negotiate Favourable Terms Regular training and updates can help your
team stay proficient with the latest technological
A. Understand Market Rates: advancements.

• Stay informed about current interest rates, fees, and B. Explore Fintech Partnerships:
lending terms in the market. This knowledge will
empower you to negotiate better terms • Consider collaborating with fintech companies
that offer innovative financing, payment
• Use competitive offers from other banks as leverage processing, and financial analytics solutions.

INTERNAL AUDIT TODAY LEADERSHIP SERIES | 13

These partnerships can complement traditional banking partners. This network often includes key
banking services and provide additional value. decision-makers and influencers within banks,
which can be leveraged to facilitate better deals
• Evaluate fintech solutions based on their and opportunities.
scalability, security, and integration capabilities
with your existing systems. Fintech partnerships Strategic Planning and Financial Analysis:
can offer customised solutions that address specific Experienced CFOs excel at assessing financial
business needs and enhance overall financial needs and aligning them with business goals. They
management. develop comprehensive banking strategies by
conducting detailed financial analyses, supporting
6. Monitor & Evaluate the Relationship informed decision-making, and ensuring that
banking relationships are aligned with long-term
A. Regularly Review Performance: objectives. Their strategic planning capabilities
help clients optimise their financial positioning
• Continuously evaluate your banking relationships and resource allocation.
to meet your expectations and evolving needs.
Establish key performance indicators (KPIs) to Negotiation and Relationship Management:
measure the effectiveness of these relationships. With their strong negotiation skills and
extensive network, experienced CFOs can secure
• Solicit feedback from your banking partners and favourable terms and build robust, mutually
address any issues promptly. Regular reviews can beneficial relationships with banking partners.
help identify areas for improvement and ensure They bring deep expertise in negotiating complex
that your banking relationships remain mutually financial agreements, ensuring clients receive
beneficial. the best possible terms and maintaining effective
partnerships.
B. Be Willing to Make Changes:
Leveraging Technology: Experienced CFOs
• If a banking relationship is no longer beneficial, are adept at guiding organisations in adopting
be prepared to switch banks. Maintaining a cutting-edge digital banking solutions and
competitive environment motivates your bank to exploring fintech partnerships. They stay current
offer the best services. with the latest technological advancements and
help integrate these tools into financial operations
• If necessary, develop a clear exit strategy to ensure seamlessly. This capability enhances efficiency
a smooth transition to a new banking partner. and financial management, providing clients a
This strategy should include detailed plans for competitive edge.
transferring accounts, managing outstanding
loans, and communicating changes to stakeholders. Ongoing Support: Seasoned CFOs provide
continuous support by regularly reviewing
How Experienced CFOs Can Help and evaluating banking relationships to ensure
they remain effective and aligned with evolving
needs. They offer strategic advice and practical
Experienced CFOs bring expertise and strategic
solutions to address any challenges, optimising
insight that can significantly enhance and navigate
financial management and ensuring that banking
banking relationships. Their extensive industry
relationships adapt to changes in the business
experience and established connections with
environment.
financial institutions provide several key benefits:
By leveraging the expertise of experienced CFOs,
Leveraging Established Relationships: Over
organisations gain access to valuable knowledge
the course of their careers, seasoned CFOs have
and resources that can significantly enhance their
cultivated strong banking relationships and built
banking relationships. This tailored approach
a valuable network of contacts. They utilise this
ensures that clients receive the support and
extensive network to benefit their clients, ensuring
strategic insight needed to navigate the
they secure optimal terms and services from

14 | LEADERSHIP SERIES INTERNAL AUDIT TODAY

complexities of banking relationships effectively, and valuable financial insights, all of which
ultimately contributing to their financial stability contribute to your organisation’s success.
and growth. You create a foundation of mutual respect
and cooperation by treating your banking
Conclusion relationships as long-term partnerships rather
than short-term transactions. This approach
Nurturing relationships with banks is akin to farming ensures that your banking partners are invested
rather than hunting; it requires continuous care, in your success and willing to support you
attention, and a long-term perspective. As a farmer through various business cycles.
tends to crop, nurturing a banking relationship
involves consistent effort, patience, and strategic Remember, successful banking relationships are
cultivation. In contrast to the hunting approach, not about seeking immediate gains but about
which focuses on short-term gains and immediate fostering a collaborative partnership that grows
results, farming emphasises sustainable growth and and flourishes over time. As a farmer reaps the
the development of enduring partnerships. Strong rewards of careful and consistent cultivation,
banking partnerships are not built overnight; they your organisation will benefit from the trust
develop through ongoing communication, mutual and support of robust, well-nurtured banking
understanding, and trust. relationships.

A CFO’s role in this process is crucial. Investing

time and effort in building and maintaining these About the author: Srinivas Subramaniam is a
relationships can cultivate a supportive financial highly experienced finance professional with over
environment that yields sustainable benefits over 35 years of leadership experience across various
time. Proactively engaging with banking partners, industries. As a Virtual and Fractional CFO
sharing accurate and timely information, and aligning at the CFO Centre in the UK, he specialises in
the company’s financial needs with its business goals business valuation and offers expertise in finance,
are essential practices. Transparency and regular accounting, and compliance. As a chartered
communication help build trust, allowing banks to accountant, cost accountant, and insolvency
understand your business better and provide tailored professional, Srinivas has a proven track record
solutions that support your growth and stability. in statutory audits, tax advisory, due diligence,
and project financing. His diverse skill set makes
Strong banking relationships can lead to more him a valuable asset in today’s complex financial
favourable financing terms, enhanced service levels, environment.

Empowering Excellence: IIA India’s

Transformative Training for Bank of Maldives

IIA India recently conducted a transformative training programme for the Bank of Maldives, led by CEO Mukundan K V and
Training Chair Uma Prakash. This initiative featured the Global Training Module (GTM), focusing on critical skills such as
Critical Thinking, Developing Audit Observations, and Fraud Auditing. The training aimed to empower the bank’s team with
essential competencies for enhancing audit and risk management practices. Special thanks were given to Bishwajit Mazumder
and Fathimath Rasheeda for their invaluable support. Mukundan K V expressed gratitude for the opportunity to work with such
a talented group, emphasizing that the insights gained would significantly benefit the bank’s audit processes. This programme
exemplified IIA Global’s commitment to high-quality education that is relevant across diverse industries and regions.

INTERNAL AUDIT TODAY LEADERSHIP SERIES | 15

 Tackling Fraud: IIA India Bombay Chapter Hosts
4th Anti-Fraud Summit

Glimpses from the Summit

On November 12, 2024, Mumbai hosted the 4th Anti-Fraud Summit, a pivotal gathering organised by the
Bombay Chapter of the Institute of Internal Auditors (IIA) India. This prestigious event brought together
industry leaders and experts dedicated to exploring innovative strategies for combating fraud. The summit
focused on enhancing organisational integrity and leveraging technology to implement best practices in
fraud prevention.

Setting the tone for the Anti-Fraud Summit, Burzin Dubash, President of IIA India, delivered a compelling
address that drew analogies from the world of sports on how internal auditors and fraud examiners can
build a culture of integrity and trust and harness technology and collaboration in proactively preventing
frauds. He emphasised that both fields require a robust foundation of integrity and trust to thrive.

Among the distinguished speakers was Mr Anami N. Roy, an Independent Director and former Director
General of Police in Maharashtra, who delivered a keynote address providing invaluable insights into
effective fraud risk management. The address on "Frauds, Evolution, Classification and Impact on the
Organisation" was delivered by Sandeep Mehra, CVO, Yes Bank Ltd. Harsh Chaudhary, Head of Fraud Risk
Management at Reliance Industries Ltd., addressed participants on "Investigative Interviewing: Where Art
Meets Science."

The summit included excellent brainstorming within its panel discussions on "Best Practices in Financial
Fraud Investigations. Expert panellists included Amey Mirajkar, Counsel, Dispute Resolution, White Collar
Crimes at Khaitan & Co., Kaizad Hazari, Group General Counsel at The Chatterjee Group - TCG Global,
Archana Moghe, Director, Head of IA at NIIF Infrastructure Finance Ltd. and Anirban Dasgupta, Group
Head, Assurance & IA at RPG Enterprises.

Manish Nair, Global Head of Marketing & Sales at Digital Business Technology Pvt. Ltd., spoke at length
about "Breaking the Silence: The Ethics and Realities of Whistleblowing."

Another excellent panel discussion on "The Importance of Due Diligence - Employees, Vendors &
Customers" brought meaningful insights from experts. They included Swapnil Pandey, Partner - Forensic
& Financial Crime, Strategy, Risk & Transactions at Deloitte India, Hiral Shah, Head - Corporate HR at
TATA Starbucks, Tanaz Mulla - Head - Corporate HR - Trent Ltd. and Manish Deo, Associate VP at the
National Stock Exchange of India Ltd.

In his closing remarks, Manish Solanki, President of the IIA India Bombay Chapter, thanked all the
participants, industry experts and sponsors for contributing to making this knowledgeable summit a
success!

16 | LEADERSHIP SERIES INTERNAL AUDIT TODAY

 The Role of IA in Championing DEI

Insurance (FGII) understands this. Which is

why FGII identified DEI as a strategic priority
in 2022. This decision marked the beginning of
a transformational journey—one that has had a
far-reaching positive impact on the organisation
and our stakeholders.

Recognising DEI’s potential to impact

everything from employee engagement to
customer experience, FGII’s leadership focused
on a structured approach to foster a truly
Ms. Ritu Sethi inclusive environment. This journey began by
Chief Internal Audit Officer, identifying three core cohorts—women, the
Future Generali India Insurance Limited LGBTQIA+ community, and differently-abled
[email protected] employees. With DEI established as a priority,
a strong governance structure was set up with a
Diversity, Equity, and Inclusion (DEI) is far more comprehensive DEI framework supported by a
than a mere box to tick off a corporate to-do list.In DEI Core Committee. Senior leaders, alongside
today’s world, it’s a fundamental driver of business an independent advisor, form this committee
resilience and a thriving workforce. Not only does to bring in diverse perspectives and provide
a robust DEI strategy foster an environment where guidance. This has helped us establish DEI as a
every employee feels valued and empowered, but cross-functional responsibility championed by
it also strengthens business outcomes by bringing senior leaders across the organisation.
in fresh perspectives, fostering innovation,
and building deeper connections with diverse Additionally, three Employee Resource Groups
customers. To put it succinctly, DEI is worth the (ERGs) were set up to amplify employees’ voices
effort—it makes for better companies and better across the organisation. Each ERG—World of
employees. Women, PRIDE Alliance Group, and Special
Ability Alliance Group—is led by a CXO and
comprises a working committee and dedicated
volunteers. These groups facilitate open dialogue,
helping FGII understand the sentiment on the
ground and across organisational levels, ensuring
inclusivity resonates with every employee.

Changing FGII’s Cultural DNA

Since embarking on this journey, FGII’s

efforts have been underpinned by a threefold
approach—educate, advocate and celebrate—
to achieve the organisation’s DEI goals. To set
the ball rolling, we started off by educating and
FGII’s DEI Journey creating awareness through regular sensitisation
As a company that followed the credo of “Leading and training workshops. At FGII, we have
with a human touch,” Future Generali India repeatedly proved that we are strong allies and

18 | INSIGHT EXCHANGE INTERNAL AUDIT TODAY

advocates of our three cohorts by introducing that many of the skills required to assess the success
policy changes or inclusive products that testify of DEI initiatives are core skills of internal auditors.
to our unwavering allyship to the LGBTQIA+ The internal audit function plays a crucial role in
community and women. any organisation’s corporate governance framework,
internal processes and controls, risk management,
For instance, being a woman in a leadership regulatory compliance, financial reporting, and
position has enabled me to witness the positive overall assistance in achieving the organisation’s
impact of FGII’s policies on the morale of the stated objectives. In the current dynamic market
women in the team. These include one-day landscape, this role is ever-expanding.
period leave, flexible working arrangements
for returning mothers, a mental health hotline, Armed with an independent and high-level view of
paternity leave, fertility treatment, inclusion an organisation, Internal Audit teams are uniquely
of surrogacy under Group Medical policy, and positioned to ensure that DEI initiatives align
travel assistance at odd hours. with an organisation’s core values and objectives.
By monitoring progress, Internal Audit can track
Additionally, as head of the Special Ability key metrics such as workforce demographics,
Alliance Group at FGII, I am proud of the strides employee surveys, and turnover rates to measure
we have taken in onboarding differently-abled the effectiveness of DEI programmes. Additionally,
candidates—we have increased their number auditors can evaluate DEI training for employees
from 7 in 2022 to 42 in this fiscal, i.e. ensured and leadership, recommending improvements to
that differently-abled employees form 1% of foster a more inclusive culture.
total employee strength at FGII. In several
departments, including within the Internal Audit Promoting ethical leadership is crucial, and Internal
team, we have identified several roles—from data Audit ensures that executives and managers are held
mining to onsite audit—where differently-abled accountable for upholding DEI values. Similarly,
candidates can excel. We have also accordingly auditors can support senior leaders in achieving
introduced changes in our hiring strategy and their DEI objectives by advising them on risk
recruiting process. considerations and doing pulse checks to track DEI
progress and refine strategies based on the results.
What sets FGII’s DEI efforts apart is our focus Another role that Internal Audit can naturally excel
on using celebration as a powerful tool to foster at is benchmarking the organisation’s DEI practices
familiarity and awareness across the organisation. against industry standards, thereby identifying areas
From month-long Pride celebrations, where for improvement and innovation. Internal Audit can
LGBTQIA+ icons engage with our team, to also verify that sufficient resources are allocated to
Diversability Week events featuring performances sustain DEI efforts across the organisation.
and sessions with DEI industry experts, these
celebrations captivate attention and have Internal auditors unarguably have the power to
successfully nurtured affinity and acceptance in act as a catalyst for positive change. But with great
our workplace. power comes great responsibility. Auditors have
the responsibility to leverage their expertise to help
Role of Internal Audit in DEI foster accountability, ensure transparency, and drive
progress toward achieving DEI objectives.
At FGII, we understand that moving the needle
on DEI requires more than good intentions.
It requires the same rigour and discipline as About the author: Ritu brings with her more than 19 years of
varied experience in Auditing and Accounting, including an 18-
any strategic business initiative. It also requires year specialisation in Life and General Insurance. She heads the
establishing metrics and monitoring the PWD Special Alliance Group at FGII and is a member of the
programme to ensure it performs as intended. FGII POSH Committee and IIA Training Team of the Bombay
We also constantly need new ways to identify Chapter. For her outstanding services and contributions, Ritu
and manage DEI risks and compare business has received numerous awards, including Internal Auditor of
the Year, Women Auditor Officer of the Year, Young Innovative
processes to expose strengths and deficiencies. Leader, and others. She is a fitness enthusiast who enjoys running,
Our DEI journey has thrown light on the fact cycling, working out, and practising yoga.

INTERNAL AUDIT TODAY INSIGHT EXCHANGE | 19

 IIA India Partners with Air India:
A New Era of Travel Benefits for Members

In a groundbreaking move, IIA India has established a strategic partnership with Air India, further
enhancing travel options for its members. This collaboration allows individual members, CA firms, and
corporate entities without existing travel arrangements to book tickets through a dedicated Yatra portal
accessible via the IIA India website. As more members book through the portal, IIA India will be better
positioned to negotiate even greater discounts and benefits.

IIA India already has similar arrangements with all major airlines, except SpiceJet, making this
partnership with Air India a key addition to its roster.

To access this offer, members are encouraged to submit their GST registration certificates to
[email protected], enabling the system to issue invoices in their names. Bookings can be
made via the “Official” tab on the Yatra portal, where users can select their GST number.

Both corporate and regular fares are displayed transparently on the portal, each with separate terms and
conditions regarding fare, cancellation, free meals, seat selection, and more. Members can choose the
most suitable option. For those without a GST registration, the “Personal” tab provides access to SME
fares with its own terms and conditions.

Mukundan KV, CEO of IIA India, expressed confidence that this initiative will deliver valuable travel
benefits and contribute to additional discounts for members. Members are encouraged to spread the
word and make the most of this exciting new offer.

20 | INSIGHT EXCHANGE INTERNAL AUDIT TODAY

 The Hidden Cost of Echo Chambers:
Why DEI Matters in Digital Marketing
The Hidden Price Tag of Digital
Bubbles
Picture this: You’re running a fantastic social
media campaign. The engagement numbers
look great. Your team is celebrating. But what
escapes your eyes is the 24 crore in annual
revenue silently slipping through the cracks.
This isn’t a hypothetical scenario—it’s the
reality for most mid-sized Indian companies
today.

Palack Jain “Companies are losing up to 40% of potential

customers due to algorithm-induced
Co-Founder & Marketing Head, demographic isolation. It’s like having a store
AlgoHype Analytics LLP with half the doors locked.”
[email protected]
Breaking Barriers: The Success
In the digital age, your brand’s biggest competitor Stories That Changed Everything
The Tanishq Revolution
isn’t another company—it’s invisibility. When I
founded AlgoHype three years ago, I made a rookie
mistake that almost cost us everything. We were so Remember the Tanishq “Second Marriage”
focused on perfecting our targeting that we created campaign? It wasn’t just brave—it was
the ultimate echo chamber. Our messages were brilliant business. By featuring a dusky bride
repeatedly reaching the same demographics, while in a remarriage ceremony with a daughter,
massive market segments remained untouched. It they didn’t just challenge social norms; they
was like hosting an exclusive party but forgetting to shattered their own echo chamber.The results?
A staggering 127% increase in engagement
send half the invitations.
across diverse age groups and a 24% sales
boost. But here’s what really matters: they
That experience taught me a valuable lesson: in today’s
reached 15 million viewers who had never
digital landscape, echo chambers aren’t just social
considered Tanishq before.
problems but profit killers.
The Dove Effect

When Dove launched their size-inclusive

campaigns in India, many thought they were
taking a risk. Instead, they were tapping into an
underserved market hungry for authenticity.
Key Numbers That Made Everyone Take
Notice:
• 2.6x higher engagement than the industry
average
• 89% positive sentiment from diverse groups
• 47% increase in brand trust among Gen Z
• Market share jumped from 14% to 19%

INTERNAL AUDIT TODAY INSIGHT EXCHANGE | 21

But the real magic wasn’t in the numbers but in the socioeconomic status. When brands truly embrace
conversations they started. Suddenly, beauty wasn’t this understanding, they expand their reach and
a one-size-fits-all concept anymore. transform their entire market position. This isn’t
about making existing content more accessible;
The Ariel ShareTheLoad Phenomenon it’s about creating entirely new conversations that
resonate with previously untapped audiences.
When P&G decided to challenge gender roles The most successful campaigns we’ve guided
with Ariel’s campaign, they weren’t just making a didn’t just translate their message into different
statement—they were expanding their market. By languages or feature diverse faces—they rebuilt
reaching 40 million men outside their traditional their entire digital strategy from the ground up
targeting, they didn’t just change mindsets; they with inclusivity as its foundation.
changed buying patterns.
The Future Is Inclusive
The digital marketing landscape is evolving faster
than ever. Brands that break free from their echo
chambers aren’t just doing good—they’re doing
better.

True inclusivity in digital marketing means

confronting our deeply ingrained biases about
beauty and attractiveness head-on. It’s about
more than token diversity—it’s about celebrating
the raw, unfiltered reality of human bodies and
The New Playbook: How to Break Your faces. When brands showcase models with visible
Own Echo Chamber stretch marks, acne scars, and skin conditions,
they’re not just being inclusive—they’re reflecting
1. Rethink Your Algorithms
the truth of their audience’s lives. The impact of
seeing unedited double chins, belly rolls, and
Stop fighting the algorithms—start outsmarting
uneven skin tones in advertising is profound
them. At Algohype, we’ve developed a cross
because it validates experiences that have long
demographic content distribution model that has
been airbrushed out of existence.
helped clients increase their reach by an average of
45%.

2. Speak Every Language

Take a page from Flipkart’s playbook. Their expansion

into vernacular content across 11 languages didn’t
just sound good—it drove a 55% sales growth in
non-metro cities.

3. Measure What Matters This approach has proven transformative

for major brands. Myntra’s revolutionary
Forget vanity metrics. Track these instead: AI-powered model representation system
• Cross-demographic engagement rates deliberately includes features that traditional
• Content accessibility scores marketing would consider “flaws”—natural
• Revenue per demographic segment body rolls when models sit, the genuine texture
• Brand sentiment across diverse groups of skin, and the natural fall of fabric on diverse
body shapes. The result wasn’t just positive
At Algohype, we’ve discovered that breaking free sentiment; it drove a remarkable 34% increase
from echo chambers requires more than just diverse in conversion rates, proving that authenticity
content—it demands a fundamental shift in how we sells better than perfection. Similarly, SUGAR
think about market expansion. The key isrecognising Cosmetics’ campaign featuring models with
that digital barriers often mirror real-world hyperpigmentation, acne scars, and different
divisions: language, culture, geographic location, and skin undertones resonated so powerfully that it
22 | INSIGHT EXCHANGE INTERNAL AUDIT TODAY
fuelled a 127% growth in non-metro markets. risk isn’t in reaching too far—it’s in not reaching
These aren’t just feel-good stories—they’re proof far enough.
that when people see their real selves represented,
they don’t just engage; they convert. The most successful brands of tomorrow won’t be
the ones with the biggest budgets or the flashiest
The solution isn’t about abandoning targeting campaigns. They’ll be the ones who manage to break
altogether—it’s about expanding our vision free from their echo chambers and reach audiences
of who our audience could be. When Flipkart they never knew they had.
evolved its “Big Billion Days” campaign from an
urban-centric approach to include vernacular The cost of maintaining social media echo
content across 11 languages, it saw a 55% sales chambers isn’t just about missed opportunities—
growth from non-metro cities. They succeeded it’s about substantial lost revenue. At Algohype,
not by narrowing their focus but by broadening we’ve consistently seen that breaking these barriers
their horizon. isn’t merely a social imperative; it’s a crucial business
strategy that directly impacts the bottom line.
The transformation begins with asking ourselves
some hard questions: Who aren’t we reaching? The success stories of brands like Tanishq, Ariel,
What conversations are we missing? Which Dove and PhonePe prove that breaking echo
audiences have we unintentionally excluded? chambers isn’t just possible—it’s profitable. The
But it doesn’t end there. Success requires action: question isn’t whether you can afford to invest in
developing multilingual content strategies, breaking echo chambers—it’s whether you can
partnering with diverse influencers, creating afford not to.
platform-specific inclusive content, and, most
importantly, measuring the impact across all About the Author: Palack Jain is the founder and
demographic segments. Marketing Head of AlgoHype, a digital marketing
& PR company based in Delhi-NCR. Having
As we look to the future, it’s clear that the most previously served as a risk advisor at Deloitte,
successful brands won’t be those with the biggest she brings a unique analytical perspective to
budgets or the flashiest campaigns. They’ll be the her current role. At AlgoHype, she helps brands
ones who manage to break free from their echo develop innovative marketing strategies that drive
chambers and reach audiences they never knew revenue growth and enhance market presence
they had. In today’s digital world, the greatest through data-driven campaigns and strategic
brand positioning.

Redefining Trust: IIA India Bangalore Chapter's

Tech Conference Sparks Innovation

The IIA Bangalore Chapter successfully hosted the Tech Conference 2024 on November 15, 2024, under the theme
"Redefining Trust Through Technology," attracting diverse professionals, innovators, and thought leaders. This one-
day event was designed to address the evolving landscape of internal auditing by integrating key functions such as
Enterprise Risk Management, Information Security, Cybersecurity, and Analytics alongside the burgeoning field
of Artificial Intelligence. It was also aimed at linked stakeholders from Infosec and CyberSec Teams to Analytics.
Attendees engaged in dynamic discussions and insightful sessions led by esteemed speakers covering critical topics like
the transformative impact of AI, cloud security in an era of sophisticated threats, and cyber forensics in today's digital
age. The conference emphasised the importance of leveraging technology to foster trust and enhance organisational
governance. Participants praised the event's relevance and depth, highlighting its role as a vital platform for networking
and knowledge exchange among stakeholders from various sectors. The hosts expressed gratitude to their sponsors,
Deloitte, and all the contributors who made this event a resounding success.
INTERNAL AUDIT TODAY INSIGHT EXCHANGE | 23
 IA Role in Mitigating Discrimination
and Harassment
indicated they had discussed identity-related
issues at work in the preceding month said they
had felt at least slightly uncomfortable in those
situations.

94% of CEOs in a consulting firm's survey

reported diversity, equity, and inclusion as their
strategic priority, a significant proof of right
intention.
Management is primarily responsible for
managing DEI programmes and promoting
Lakshmi B equality in an organisation. However,
internal audits also have an opportunity and
Head of Audit, Padakannaya and Co.
an obligation to accelerate this movement
[email protected]
towards greater diversity, equity, and inclusivity
throughout the organisation, horizontally and
Diversity, equity, and inclusion (DEI) is a framework vertically, by embedding DEI concepts into
that promotes the fair treatment and participation its responsibilities and the services it provides
of all people, especially those historically under within its functions.
represented or discriminated against.
An internal audit on diversity, equity, and
Diversity, equity, and inclusion are three closely linked inclusion (DEI) is a structured process that
values held by many organisations that are working assesses an organisation's commitment to DEI
to be supportive of different groups of individuals, in the workplace:
including people of different races, ethnicities,
religions, abilities, genders, and sexual orientations. It
is becoming increasingly popular among candidates • Purpose: To identify areas for improvement
and employees, with many considering it a major and create a more inclusive work environment.
factor when choosing a job. Company leaders can
also play a role in implementing DEI policies. • Process: Involves analysing company policies,
practices, and culture, as well as employee
A resounding 84 per cent of survey respondents surveys and assessments.
across the industry say they have experienced micro
aggressions at work. More than one in four say they • Tools: Uses diversity research and diagnostics,
have needed to correct others' assumptions about gender pay gap analysis, andequality impact
their personal lives. High levels of respondents have assessments.
experienced everyday slights rooted in bias, such as
not receiving credit for their ideas, being asked to • Output: A report that highlights areas of
speak as a representative for a group of people like opportunity and improvement.
themselves, or being coached to communicate in an
inauthentic way. Understanding Discrimination Risks
Among survey respondents who identified as racial Effective DEI audits hinge on understanding
or ethnic minorities, 40 per cent of those who the associated risks, including various

24 | INSIGHT EXCHANGE INTERNAL AUDIT TODAY

discrimination practices, their manifestations in Internal Audit’s Role
the workplace, and how responsible committees
address complaints. DEI issues can pose material Driving an Inclusive Culture
risks to businesses, potentially leading to reputational
damage and continuity challenges. As business Numerous studies indicate that diverse
strategies evolve, Boards and executive teams must organisations outperform homogeneous ones
transition from merely acknowledging DEI concerns in innovation and productivity. High-growth
to proactively addressing them to ensure a more brands, defined as those with 10% or more annual
inclusive and resilient organisation. revenue growth, are more likely to implement
specific performance metrics for DEI compared
Discrimination risks are intertwined and lead to to lower-growth competitors. As workforce
chain reactions withinan organisation. These risks dynamics evolve, the demand for a diverse
include: and inclusive workplace is becoming essential,
especially among highly educated young
• People Risk: Employee Resentment professionals. Internal audits can be pivotal in
• Operational Risk: Inefficiency and Less Productivity promoting DEI in recruitment, retention, and
• Strategy Risk: Unstable Management development across the organisation.
• Reputational Risk Assembling the Power of Mindset and Metrics
• Compliance Risk
Organisations must actively combat bigotry
These risks are interconnected and ultimately lead and systemic oppression by advocating for and
to organisational fall out in the industry and easily hiring from underrepresented communities.
surrendering to the competitors. However, simply having a diverse workforce is
insufficient; businesses must enhance inclusive
Benefits of DEI Audits and equitable practices throughout the
organisation. This requires establishing systems
Internal audits can effectively help organisations to monitor DEI initiatives and providing leaders
mitigate risks related to discrimination and harassment. with actionable metrics for decision-making.
Positioned to evaluate DEI programmes objectively, Internal auditors possess the essential skills
internal auditors possess the methodologies and skills to assess the effectiveness of DEI initiatives,
necessary to assess DEI programme risks, develop ensuring a disciplined approach to fostering a
effective remediation plans, and ensure programme fair work culture.
effectiveness. Companies that excel in diversity
are more likely to achieve higher profits than their Getting in the Driver’s Seat and Accelerating
competitors. DEI Efforts

• Uncover biases, disparities, or barriers that might Internal audits can apply audit techniques within
hinder equal opportunities and representation. their functions, at the enterprise level, and
• Create focus groups for a more inclusive and among stakeholders to support management
equitable workplace. in achieving its DEI objectives. This can be
• Develop targeted strategies and initiatives. accomplished by providing insights into cultural
• Increase creativity and spur innovation. risks and assessing DEI initiatives. However,
• Attract and retain highly qualified people. catalysing DEI progress throughout the broader
organisation should begin by taking action
within its four walls.

Solving for DEI requires looking at systems,

procedures, policies, and culture. Companies
should leverage assessments, audits, and
ongoing strategic DEI learning and development
experiences.

INTERNAL AUDIT TODAY INSIGHT EXCHANGE | 25

1. Tone at the Top to handle DEI issues the employees raise.
Executive management members should
It is critical for DEI success in an organisation. monitor its functioning to avoid any personal
Internal auditors should support senior leaders in biases by the committee members. Internal
achieving their DEI objectives and advise them on audit operations can drive discipline in DEI
risk considerations for engaging with increasingly initiatives by measuring strengths, deficiencies,
diverse and vigilant groups of internal and external and chuming metrics that walk the talk.
stakeholders. Doing pulse checks can help track DEI
progress and refine strategies based on the results. 5. Bench Marking and Trend Analysis
2. HR Policies Study and compare industry trends and
benchmarks and help management with
Review of HR Policies concerning DEI framework insights on DEI initiatives. Quantitative
and initiatives, specific DEI programmes, evaluating
data from surveys can be analysed alongside
department-wise recruitment, learning, and
qualitative feedback from interviews, providing
development activities, and design of the DEI road
a holistic view. Identifying patterns across
map for the departments/functions.
various demographic groups helps pinpoint
3. DEI Policy and Procedure systemic DEI issues..

Reviewing the Company's Harassment and 6. Compliance

Discrimination Policies. To get there, many
Confirm compliance with relevant diversity,
companies will need to update their recruitment
equity and inclusion regulations. Review
and retention strategies, if not redesign. It can assist
procedures for handling DEIB-related
in creating allies and driving an inclusive culture by
complaints and incidents. Conduct a risk
fulfilling the roles concerning DEI in alignment with
assessment for potential DEIB-related issues.
the organisation's human resources and legal policies.
Evaluate the effectiveness of risk mitigation
4. DEI Matrix and Committee Review strategies for DEIB.

Establish a DEI committee with capable and

independent leaders with an objective mindset

Handling Employee Complaints

Internal audit’s role in ensuring a safe reporting environment.

Key Areas of DEI DEI program/Policy Role of an Internal Audit

Promoting a Establish and advocate for a Internal audit assesses the

Whistleblower Policy formal whistleblower policy that effectiveness of these policies
outlines clear channels for safe to ensure that they are well-
and anonymous reporting communicated, accessible, and
trustworthy.

26 | INSIGHT EXCHANGE INTERNAL AUDIT TODAY

 Key Areas of DEI DEI program/Policy Role of an Internal Audit

Regular Assessment of Ensure that all reporting channels Internal audit evaluates
Reporting Channels (e.g., hotlines, email, suggestion these channels for reliability,
boxes) are secure, confidential, confidentiality measures,
and user-friendly and accessibility, especially
for remote or vulnerable
employees
Evaluating the Understand the broader Internal audit can conduct
Organizational Culture organizational culture and its surveys, interviews, and focus
impact on employees’ willingness groups to gauge employee
to report issues sentiment about safety and
openness in reporting. They
identify cultural barriers, such
as fear of retaliation or a lack of
faith in management’s response.
Ensuring Independence Safeguard employees who report Internal audit reviews cases of
and Protection for issues, ensuring independence reported retaliation, evaluates
Reporters and protection from retaliation. disciplinary measures against
retaliatory actions, and assesses
the organization’s track record
on handling complaints

Monitoring and Keep the audit committee Internal audit presents data on
Reporting to the Audit informed of trends, high-risk the volume and types of reports
Committee areas, and the overall health of received, as well as follow-up
the reporting environment. actions and outcomes. This
includes identifying trends and
analysing areas with frequent
complaints.
Conducting Investigate reported issues in Internal audit, or designated
Investigations and an unbiased, thorough manner independent investigators,
Follow-ups and ensure issues are resolved conduct investigations of
effectively. reported cases. They follow
up on resolutions, ensuring
accountability and that
necessary actions are taken.
Leveraging Technology Implement technology that Internal audit evaluates secure
for Confidential ensures anonymity and security software solutions for reporting
Reporting in reporting. and tracking issues, ensuring
that these systems protect
identities and facilitate safe,
anonymous reporting

Audit Interviews and Surveys

Techniques to assess workplace culture without fear of retribution. Audit interviews and surveys should
include:

INTERNAL AUDIT TODAY INSIGHT EXCHANGE | 27

1. Leadership Commitment: Questions focus on the managers and senior management as against
leadership's role in supporting DEI, including policy employee's resignation.
enforcement and promotion of a diverse culture. 4. Retaliation-free working environment.
2. Hiring and Promotion Practices: Interviews 5. Leaders should continuously evaluate,
explore whether recruitment, retention and recalibrate, and spar on DEl efforts to ensure
advancement are fair and unbiased across different blind spots are diminished.
demographics. 6. Have someone responsible for DEl initiatives.
3. Workplace Culture: Employees are asked about 7. Customise DEl management styles based on
their comfort in sharing diverse perspectives and organisational needs.
whether they feel valued and included. 8. Implicit biases.
4. Training and Awareness: Assess the presence and 9. Overcoming DEl challenges.
effectiveness of DEI training programmes to foster an 10. Recognise the importance of DEI by
inclusive culture. encouraging awareness and training in diverse
5. Inclusiveness and Belonging: Questions might perspectives within audit engagements, as
measure employees’ sense of belonging and comfort outlined in various guidelines and technical
in expressing their identity. guides.
6. Equity in Opportunities: Survey items can assess
The DEI framework should be adaptable and
if employees feel equalopportunities for development
implemented across all areas of an organisation
and advancement exist for all.
to address potential discrimination,
7. Discrimination and Harassment: Specific
encompassing gender, religion, language, caste,
questions gauge the prevalence of discrimination and
colour, abilities, experiences, and ethnicities.
the organisation’s response.
Internal audits promote ethical practices by
8. Impact of DEI Programmes: Measures the
encouraging a culture of integrity and open
perceived effectiveness of DEI initiatives.
reporting. These efforts help cultivate a safe and
trustworthy environment where employees feel
Supporting an Ethical Culture secure in raising concerns, ultimately fostering a
more ethical and transparent organisation.
Promoting ethical culture in the organisation should
start with leadership roles in each department.
This encourages and sets the example for the team About the author: : Lakshmi B is a qualified
members to deal ethically with their peers and Chartered Accountant (CA) and Certified
clients. To build a discrimination-free environment, Internal Auditor (CIA) with over 13 years
organisations should ensure: of experience in internal auditing. Currently
the Head of Audit at Padakannaya and Co.,
1. Promoting 360-degree feedback to ensure the Bangalore, she has demonstrated a commitment
employees are heard. to quality and value in enhancing organisational
2. Independent checks on the department's employee controls across diverse sectors, including financial
appraisal process. services, IT, and manufacturing.
3. Checks to review instances of complaints against

Deadline: 07th January, 2025 Please submit your article to [email protected]

28 | INSIGHT EXCHANGE INTERNAL AUDIT TODAY

 Building Inclusive Cultures:
How IA Can Champion Diversity

questions such as:

• Are diversity and inclusion metrics part of
the company’s key performance indicators?
• How often is the leadership team reviewing
D&I initiatives?
• Are there potential biases in recruitment,
promotions, or pay gaps?
• What are employees’ experiences in relation
to inclusion, and how is this data collected and
analysed?

Lalitha Satheesh
Global Offering Lead - Risk & Compliance,
Accenture, Bangalore
[email protected]

In today’s interconnected world, the business

landscape is evolving at breakneck speed. From
technology-driven transformations to global
movements advocating for social justice,
organisations are realising the need to build The Overlooked Superpower of IA
inclusive cultures that foster diversity. Yet, while
many companies publicly commit to diversity, the “We’re like the referee in the middle of the
gap between intention and execution remains wide. game, quietly ensuring everyone plays fair,
but we can also shape the rules to make sure
When thinking about who drives diversity and the field is level,” says Tina Lopez, Chief Audit
inclusion initiatives in an organisation, internal Officer at a Fortune 500 company.
audit might not be the first department to come to
mind. Yet, the role of internal audit in championing While diversity may sound like a human
diversity and building an inclusive culture is more resources agenda, internal auditors possess
powerful than many realise. Internal auditors are a superpower often overlooked: the ability
positioned to examine policies, identify biases, and to spot the cracks in a company’s processes,
ensure that the company’s culture promotes diversity, culture, and practices. McKinsey’s Diversity
equity, and inclusion (DE&I). Wins report shows that companies in the top
quartile for gender diversity are 25% more
But how can this often-overlooked function take the likely to out perform their peers. Similarly,
lead? Let us explore how internal audits can foster an those with high ethnic diversity see a 36%
inclusive culture while keeping things light because higher likelihood of financial performance
audits do not have to be all spreadsheets and frowns. above their industry median. If that does not
get the attention of the C-suite, nothing will!
Internal auditors often balance strict regulatory
oversight and a consultative role. When it comes Internal audit can provide a powerful lens into
to diversity, however, the latter becomes more whether an organisation’s DE&I policies are
pronounced. IA can play a pivotal role in asking

INTERNAL AUDIT TODAY INSIGHT EXCHANGE | 29

genuinely working—or merely paying lip service. executives believe a diverse workforce enhances
Auditors can ensure that diversity efforts are innovation, but only 23% felt their diversity
embedded in everything from hiring practices to initiatives were effective. Internal audits can play a
promotion criteria. key role in bridging this gap by ensuring that the
organisation’s diversity strategies go beyond just
Auditing Bias in Hiring and Promotions checking a box.

Internal audit teams can help uncover Below is an example of a graph that highlights the
unconscious bias by reviewing hiring, stark difference between companies with strong
promotion, and retention practices. Are women DE&I strategies and those lagging:
and minorities advancing at the same rate as their
peers? Are there processes in place to mitigate
bias in decision-making?

A recent study by Harvard Business Review

revealed that 60% of employees who perceive
bias in their workplace have a diminished sense
of engagement. This can result in higher turnover
rates and lower productivity. Internal audits can
review exit interview data, hiring demographics,
and promotion timelines to spot trends and help
HR refine their practices. Embedding DE&I into Risk Management:
A Proactive Approach
As one veteran auditor put it: “We’re not just
here to count beans—we’re here to make sure Diversity is not just a human resources issue but
everyone has a fair shot at cooking them.” a critical risk factor. According to the IIA, failure
to cultivate diversity in leadership and decision-
making teams can lead to groupthink, resulting
in missed opportunities and even regulatory or
reputational risks.

The IIA suggests that DE&I should be integrated

into broader risk assessments, ensuring that
diversity issues—like potential bias or lack
of inclusion—are evaluated alongside more
traditional risks. By embedding DE&I into risk
management, internal auditors ensure that the
organisation is aware of, and prepared to mitigate,
the risks associated with a non-diverse workforce.

Championing Accountability
Evaluating DE&I Programmes:
Execution over Documentation Finally, Internal Audit can champion accountability.
Diversity and inclusion should not just be an
Having diversity programmes in place is one HR metric or a once-a-year event. It should
thing, but are they effective? Internal audit be woven into the fabric of the organisation’s
can assess the effectiveness of DE&I initiatives performance reviews, leadership evaluations, and
by conducting surveys, reviewing training key performance indicators (KPIs).
outcomes, and interviewing employees to get an
honest picture of how inclusive the culture really A survey from PwC found that 83% of companies
is. now include DE&I goals in their leadership
For example, a Deloitte study found that 94% of performance objectives. However, without

30 | INSIGHT EXCHANGE INTERNAL AUDIT TODAY

 accountability, these goals risk becoming nothing Encourage the organisation to view D&I as an
more than window dressing. Internal audits can ongoing journey, not a one-time box-ticking
ensure that diversity is being measured and tied exercise.
to tangible business outcomes. Conclusion: A Call for Internal Audit to
Lead by Example
Furthermore, The Institute of Internal Auditors
(IIA) has issued guidance on integrating
“Building an inclusive culture isn’t just an HR
diversity into audit plans. Its stance underscores
responsibility; it’s every leader’s responsibility.”
the importance of auditing “soft” areas like
While the responsibility for fostering an inclusive
organisational culture, which are harder to
workplace may begin with leadership, the
quantify but critical for ensuring a truly inclusive
internal audit function is essential in ensuring
environment.
the sustainability of diversity efforts. By auditing
financials and company culture and practices, IA
As IA professionals consider their role in
can function as a catalyst for real, lasting change.
championing diversity, they may want to reflect
The question is not whether organisations should
on these key questions:
prioritise diversity but how internal auditors can
ensure these efforts translate into measurable,
• Is our audit team itself diverse, and do we
meaningful outcomes.
practice what we preach?
• How does diversity intersect with the
As we move forward, the key challenge for IA
organisation’s risk management strategy?
professionals will be to strike a balance between
• Are we unintentionally perpetuating a
oversight and advocacy, all while ensuring that
compliance-driven view of diversity ratherthan
diversity and inclusion remain at the forefront of
a value-driven one?
organisational strategy—not just in words, but in
action.
Key Actions for Internal Audit Leaders
As internal auditors, we are in a unique position to
To truly champion diversity and foster inclusive champion diversity—not just because it’s the right
cultures, internal auditors need to shift from thing to do, but because it’s essential for long-term
reactive oversight to proactive guidance. Here business success.
are three key actions IA leaders can take:
By aligning with IIA guidelines, Internal Audit
1. Expand the Scope of Audits: Include diversity can help foster a more diverse, equitable, and
metrics, employee feedback on inclusion, and inclusive workplace. Whether through identifying
unbiased recruitment practices within regular biases, holding leadership accountable, or auditing
audits. Internal auditors should assess whether the effectiveness of DE&I initiatives, Internal
the organisation’s culture is open to diverse Audit plays a vital role in shaping the future of
perspectives and backgrounds. organisational culture.

2. Collaborate with HR and Diversity Officers:

Create a cross-functional team where IA can About the author: Lalitha Satheesh is the Global
regularly communicate with HR and the Chief Offering Lead for Risk & Compliance at Accenture
Diversity Officer (CDO) to ensure that diversity in Bangalore and serves as Vice President of the
goals are met. IA should function as both a Bangalore Chapter of IIA. With over 20 years of
sounding board and an accountability partner diverse experience, she has held roles in quality
for these departments. assurance, service delivery, and governance across
various industries, including FMCG, Oil & Gas,
3. Focus on Continuous Improvement: Like Pharma, Telecom, Media and Banking. Lalitha is
any business process, diversity and inclusion dedicated to upskilling and professional certification,
should be subject to continuous improvement. focusing on audit, risk management, controls, and
compliance.

INTERNAL AUDIT TODAY INSIGHT EXCHANGE | 31

 The Human Algorithm:
Why Diversity is AI’s Missing Code
judicial decisions to healthcare access—the cost
of homogeneous development teams becomes
exponentially higher. Every biased algorithm
doesn’t just make a mistake; it perpetuates and
amplifies societal inequities at scale. A biased
hiring AI doesn’t just reject one candidate; it
shapes thousands of careers. A skewed medical
AI doesn’t just misdiagnose one patient; it
impacts countless lives.

These aren’t hypothetical scenarios—they’re

already unfolding around us with alarming
Ashutosh Upadhyay consequences. Let us take the example of what
happened with Amazon’s AI recruitment tool,
AI Automation Consultant & Marketer
which turned into a cautionary tale of gender
[email protected]
bias in tech. Trained on a decade of male-
dominated hiring data, the system taught
One morning in 2015, a Google engineer’s inbox itself that being male was a mark of success. It
began automatically downgrading resumes that
pinged with a message that would shake the tech
world: their AI was labelling Black people as “gorillas.” included terms like “women’s” or mentioned
This wasn’t just a technical glitch but a stark warning all-women colleges, effectively slamming doors
that we were building artificial intelligence with real before deserving women candidates could even
human blindspots. It was the moment that forced the reach them.
tech world to confront an uncomfortable truth: the
most sophisticated code in the world is worthless if it
doesn’t understand the humans it serves.

The Hidden Code in AI Development

Imagine building a universal translator while only
speaking one language. Sounds absurd, right? Yet
that’s precisely what happens when homogeneous
teams build AI systems to serve a diverse world.
The code might be flawless, but the context is fatally
flawed. We’ve seen this play out time and again—
healthcare AIs missing heart attacks in women
because they present symptoms differently than
men, facial recognition failing in different lighting
conditions because it was tested primarily on lighter
skin tones and voice assistants creating digital
barriers for entire communities because they struggle Even more troubling is the healthcare
with accents. algorithm that affected millions of Americans.
What seemed like an objective measure—
The Stakes Have Never Been Higher using past healthcare costs to determine
medical needs—revealed a dangerous blind
As AI systems increasingly shape our world—from spot. Because Black patients historically

32 | INSIGHT EXCHANGE INTERNAL AUDIT TODAY

 had limited access to healthcare due to systemic likely to outperform their peers, while those in the
barriers, they typically showed lower past medical top quartile for gender diversity saw a 39% higher
costs. The AI interpreted this as needing less care likelihood of financial outperformance.
despite having identical health conditions as white
or Caucasian patients. This wasn’t just flawed The Symphony of Innovation
data analysis—it was a digital system reinforcing
decades of healthcare inequality. These real world Think of AI development like an orchestra.
examples show us that without diverse perspectives Technical expertise is your strings section—
in AI development, we risk building a future that essential, but alone, it creates only one kind of music.
amplifies our past mistakes at unprecedented When we add diverse perspectives, something
speed and scale. magical happens. Cultural anthropologists
bring their understanding of human behaviour,
The Biological Imperative: sociologists add insights into social dynamics,
Learning from Nature’s Diversity ethicists provide moral consideration, and users
from different backgrounds contribute to the
Mother Nature has been running her own R&D lab harmony of real-world experience. Together,
for billions of years, and here’s what she’s learned: they create something far more powerful than
monocultures are vulnerable. In ecology, any single instrument could achieve alone. It’s
biodiversity creates resilient ecosystems. The no surprise that the biggest companies in AI
same principle applies to AI development teams. today, such as OpenAI, Anthropic, Google, etc.,
employ many philosophy majors and people from
The Innovation Ecosystem different disciplines to capture perspectives that
technical wizards often overlook.
Like a coral reef teeming with different species,
diverse AI teams create:
Consider what happened when Safaricom,
• Symbiotic innovation relationships
a Kenyan communication and fintech firm,
• Natural checks and balances
embraced this orchestral approach. Their
• Resilience against systematic errors
diverse team revolutionised credit scoring by
• Adaptive problem-solving mechanisms
understanding how different communities
build financial stability. They looked beyond
traditional credit histories to see the informal
lending networks in immigrant communities, the
seasonal income patterns of agricultural workers,
and the alternative payment histories of young
urbanites. The result wasn’t just more inclusive—
it was better business. Loan approval rates soared
among traditionally underserved populations
while default rates actually decreased.

Building Tomorrow’s AI
The future of AI isn’t just about better
The Economic Paradox: Diversity as algorithms—it’s about better humans making
Market Intelligence those algorithms. When a team brings together
different ways of thinking, life experiences, and
Here’s a capitalism plot twist: Diversity isn’t cultural perspectives, they don’t just avoid blind
just good ethics—it’s good economics. Teams spots—they see opportunities that homogeneous
with broader cultural and socioeconomic teams miss entirely. If AI is our attempt to recreate
representation have demonstrated an uncanny intelligence, then diversity isn’t just a feature—it’s
ability to predict market trends and user needs a fundamental requirement. After all, how can we
across different demographics. McKinsey’s teach machines to understand humanity if our
analysis of over 1,000 companies across 12 development teams only represent a fraction of
countries showed that firms in the top quartile the human experience?
for ethnic and cultural diversity were 33% more

INTERNAL AUDIT TODAY INSIGHT EXCHANGE | 33

The Future We Choose in a world that’s painted in infinite colours,
why would we choose to build AI that only sees
in black and white?

As we edge closer to artificial general intelligence

(AGI), diverse perspectives become even more
critical. We can continue building AI that reflects
the limited perspectives of homogeneous teams, or
we can create technology that embraces the rich
complexity of human experience. The technical About the author: Ashutosh Upadhyay is an
challenges of AI are formidable, but they pale in expert AI Consultant based in Delhi-NCR. An
comparison to the challenge of understanding Arizona State University graduate, he delved into
human diversity. AI to pursue innovative solutions for his agency,
AloHype and AI Solutions company, Cognio Labs.
Ultimately, the question isn’t whether we can create His exposure to AI turned him from an agnostic
smarter AI—we can and will. The real question is to an evangelist. He has immersed himself in
whether we’ll create AI that understands and serves developing products that help people interact with
all of humanity, not just a privileged slice. Because AI systems for consistent and precise results.

IIA India CEO Inspires Future Internal Auditors at

EThames College

Mukundan K V, CEO of IIA India, recently delivered an enlightening session to students, faculty, and management at EThames
College, Hyderabad, where he emphasised the Certified Internal Auditor (CIA) exam’s importance in shaping successful internal
audit careers. His insights gave attendees a robust understanding of the CIA’s significance, highlighting how it enhances career
prospects and professional credibility. The event was a testament to Mukundan’s commitment to fostering the next generation
of internal audit leaders. Special thanks were extended to Ashish Chadha and Kali Prasad Gadiraju for their organisational
efforts, along with George Kalliath for his continuous support and encouragement.

34 | INSIGHT EXCHANGE INTERNAL AUDIT TODAY

 Transform Your Workplace by
Transforming Yourself!
(A Mindful Approach to Inclusion )

the weight of wanting to fix everyone and

everything at once. We seek to change policies,
influence others’ behaviours, or reshape
existing structures. While these are worthy
goals, they miss a fundamental truth: our
personal energy and state of being profoundly
impact our workspace in ways that transcend
formal initiatives.

Practice: The Energy Awareness

Exercise
• Find a quiet moment before entering your
Sakshi Shree workspace
• Close your eyes and scan your emotional
Founder: Science Divine Foundation state
[email protected] • Ask yourself: “What energy am I bringing
into this space today?”
Picture yourself standing by a serene pond at dawn. • Visualise your energy as a colour or light
Feel the quiet anticipation in the air, the gentle breath • Consider: “How might this affect those
of the morning. As you drop a single stone into those around me?”
still waters, observe how the ripples move outward in Recent studies in organisational behaviour
perfect circles, transforming the entire surface with have shown that emotions and attitudes flow
their gentle touch. This moment mirrors one of life’s through workplace settings like water through
most profound truths: transformation begins at a connected vessels. When one person maintains
single point—within your own heart—and naturally a centered, inclusive presence, it creates a subtle
extends outward to touch all those around you. At our yet powerful shift in team dynamics. This
workplace, we are that single point of transformation. phenomenon, known as emotional contagion,
The change we wish to see—be it more inclusion, means your personal transformation naturally
better understanding, or deeper connections—starts influences those around you. Consider this: as
not with others but within our own consciousness. a drop of water doesn’t need to force its ripples
outward—they move naturally—your own state
of being radiates outward effortlessly when you
achieve genuine inner transformation.
Starting at the Center
The journey begins with core mindfulness
practices that help us establish a stable center.
These aren’t just exercises—they’re doorways
to a deeper understanding of ourselves and
others.
Daily Heart-Opening Practices
Understanding the Ripple 1. The MIRROR of Compassion
In our earnest desire to create inclusive workplaces, • Stand before a mirror each morning
we often look outward first, our hearts heavy with • Look into your own eyes with kindness

INTERNAL AUDIT TODAY INSIGHT EXCHANGE | 35

 • Notice one unique quality about each person
• Silently appreciate their presence
2. The Bridge of Understanding
• Choose one person whose perspective differs
from yours
• Write down three possible reasons for that
person’s viewpoint
• Find one point of genuine connection
3. The Bridge of Inclusion
• Notice who might feel left out in meetings
• Create space for their voice with: “I’d love to
• Say internally: “Just as I wish to be hear your thoughts on this”
understood and accepted, so do all beings.” • Practice active listening without planning your
• Send loving-kindness to yourself and response
visualise it expanding to include your Sustaining the Waves
colleagues
The R.I.P.P.L.E. Practice for Lasting Change
2. The PAUSE Method • R: Remember your intention each morning
When triggered or challenged: • I: Invite feedback with openness
• P: Pause and breathe • P: Practice presence in each interaction
• A: Acknowledge your feelings without judgment • P: Pause before reacting
• U: Understand what’s beneath your reaction • L: Listen with your whole being
• E: Extend compassion to yourself and others
• S: Sense your body’s wisdom
when challenges arise
• E: Extend compassion to yourself and others
Emotional Check-in Practice
3. The INCLUSION Visualisation Set three daily alarms for this 30-second practice:
1. Close your eyes
Find a quiet space and practice this 5-minute exercise: 2. Place a hand on your heart
• Imagine your workspace filled with golden light 3. Ask: “What am I carrying right now?”
• See each colleague enveloped in this light 4. Take one conscious breath
• Silently offer: “May you feel seen, heard, and val- 5. Release what’s not serving the highest good
ued”
• Include those you find challenging, remembering The Continuing Journey
they, too, carry hopes and fears Your transformation journey is deeply personal
and universally connected to everyone around
Expanding the Circles you. Each mindful breath, each conscious choice,
As your inner practice deepens, you’ll notice natural and each moment of inclusive awareness create
opportunities to expand its influence through ripples that touch countless lives in ways we may
conscious action. Your transformed presence never fully know.
creates a field of safety where team members
Evening Reflection Practice
feel seen and valued. This happens not through
forced techniques but through genuine presence Before ending your workday
and acceptance. When you truly listen without • Sit quietly for three minutes
judgement, others naturally feel more comfortable • Recall three moments of connection
being themselves. • Acknowledge one challenge you faced with
courage
Practice: The Three Bridges Exercise • Set an intention for tomorrow
• Thank yourself for showing up with awareness
Build connections through these daily actions:
1. The Bridge of Acknowledgment
• Make eye contact and smile at three people Remember the pond we started with? In the
you normally pass by same way that water holds the memory of every

36 | INSIGHT EXCHANGE INTERNAL AUDIT TODAY

 ripple, our workplace holds the energy of every of transformation spread outward, carrying
conscious choice we make. Your transformation with them the promise of a more inclusive,
isn’t just changing you—it’s contributing to a larger understanding, and harmonious world.
field of awareness that touches everyone in your Remember: Every moment of conscious pres-
organisation. ence is a gift to yourself and those around you.
Your inner work creates outer change in more
profound ways than you can imagine.

Let your heart guide your practice, and trust

that each small step creates lasting change.

About the author: Sakshi Shree, a retired Indian

civil servant, is a world-renowned mystic with
over 3 decades of intense research and experience
mentoring and empowering professionals, youth
and people from all walks of life in consciously
Begin now. Take a deep breath. Feel your own designing their lives. Founder of the Science Divine
presence, your own power to create positive Foundation, he spearheads the global Young Mind
change. Drop that first stone of awareness into the Movement and has touched millions of lives
pond of your workplace and watch as the ripples through his transformative philosophy.

Engaging Webinar on Proactive

Fraud Detection for Internal Auditors

The IIA India - Delhi Branch successfully hosted the webinar “Beyond Compliance: The Proactive Role
of Internal Auditors in Detecting and Preventing Fraud.” Led by Surath Mukherjee, the session covered
essential topics such as fraud definitions, recent survey insights, and the rise of white-collar crimes, along
with behavioural red flags and the significance of fraud awareness training. Participants actively engaged
during the Q&A and benefitted from Mukherjee’s detailed responses. Special thanks were also extended
to Training Committee Chairperson Gaurav Bhatia for facilitating an impactful fireside chat. The event
underscored the importance of proactive internal auditing in today’s complex financial landscape.

INTERNAL AUDIT TODAY INSIGHT EXCHANGE | 37

 The Hybrid Shift
Evolution of Internal Audit
systems. Internal auditors may face challenges
accessing data traditionally stored in physical
locations or on company networks.

• Audit Scope and Focus: The shift to

remote work may change the risk landscape,
necessitating adjustments in the audit scope.
Auditors need to reassess the risks associated
with remote work, such as data security and
employee compliance.

Aditya Maheshwari
Principal, CFO Centre, Jaipur
[email protected]

The rise of hybrid and remote work models has

transformed the landscape of the modern workplace,
evolving from a pandemic necessity to a permanent
fixture. These flexible work arrangements have
enhanced employee morale and strengthened 2. Factors to Consider About Internal Audit
recruitment efforts across various sectors, including Teams and the Broader Organisation
private businesses and public organisations.
However, this transition has brought forth unique • Hybrid Work Expectations: Are the ‘ground
challenges, particularly for internal audit teams, rules’ around hybrid working completely
whose experiences with these new models can vary clear, i.e. what is expected and meant by
significantly based on organisational readiness. ‘hybrid working’? Is there scope to review and
modify this based on team and organisational
Despite these challenges, a consensus among internal requirements?
audit leaders highlights the substantial benefits that
hybrid and remote work models have introduced to • Onboarding Excellence: Integration &
their operations, reflecting a significant shift in how development of new/junior staff, e.g. learning
work is structured and executed in today’s dynamic through regular face-to-face interaction and
environment. mentoring, is generally more effective.
• DEI Matters: Maintaining a sense of ‘fairness’
The phenomenal rise of remote and hybrid work where staff choose different working practices,
models has significantly impacted internal audit e.g.the risk of giving preference to staff in the
processes, as elaborated below: office, such as’’ proximity bias’ or ‘presenteeism’.
Are there wider implications for diversity and
Impact of Remote and Hybrid Work
inclusion?
Models on Internal Audit
• Hybrid Competence: Are all teams/
1. Changes in Audit Planning and Execution leaders able to manage a hybrid working
model effectively, e.g., the right skill sets and
• Access to Information: Remote and hybrid work approach? Is additional training or sharing of
can complicate access to physicaldocuments and good practice needed?
38 | INSIGHT EXCHANGE INTERNAL AUDIT TODAY
 cybersecurity threats. Internal auditors must
pay closer attention to IT controls and data
protection measures

4. Communication and Collaboration

Challenges

• Remote Communication: Conducting audits

remotely requires effective communication
channels. Internal auditors must navigate the
challenges of virtual meetings and ensure clear,
consistent communication with stakeholders.

• Audit Dynamics: Some audit tasks may be more • Team Dynamics: Hybrid models can
challenging to complete out of the office, e.g., significantly impact team dynamics and
publishing audit reports and dealing with complex collaboration. Auditors must foster effective
or sensitive issues, which must be managed teamwork and facilitate information sharing,
accordingly. even in the face of physical distance.

• Consistent Evaluation: Is there consistency in 5. Changes in Internal Controls

assessing risks and key judgement calls?
• Control Environment: Remote work can
• Cultural Dynamics: How do you promote a impact internal controls, particularly financial
strong ‘cultural cohesion’ or drive cultural change; reporting and compliance. Auditors need to
is there a risk of creating ‘sub-cultures’? Are there evaluate the effectiveness of remote controls
longer-term risks to an organisation’s culture? and make necessary adjustments.

• Engagement Strategies: Are any staff members • Monitoring and Supervision: Supervising
reluctant to spend time in the office, and what can remote employees and ensuring adherence
be done to address this, e.g., planned activities or to controls can be more challenging. Internal
team days? auditors must assess the robustness of remote
supervision mechanisms.
• Retention Metrics: To what extent does flexibility
help attract and retain staff? Does staff recruitment Necessary Adjustments for Internal Audit
and exit process feedback indicate that the balance Processes
is right?
1. Enhancing Technology and Data Analytics
• Flexibility Dynamics: Are there differences in
attitudes to flexibility, e.g., between teams or at • Leverage Technology: Invest in advanced
different levels of seniority? How are these being audit software and data analytics tools to
addressed? facilitate remote audits. Tools like virtual
data rooms and secure cloud storage can help
3. Increased Dependence on Technology manage and access audit data more efficiently.

• Digital Tools and Platforms: With increased • Remote Audit Tools: Implement and optimise
reliance on digital tools,internal auditors must remote audit tools to conduct virtual interviews,
become proficient in using various collaboration review electronic documents, and perform
platforms, data analytics tools, and virtual remote observations.
communication methods.
2. Revising Audit Methodologies
• Cybersecurity Risks: With more employees
working remotely, there is a heightened risk of • Adapt Audit Plans: Modify audit plans to
account for the remote work environment. This
INTERNAL AUDIT TODAY INSIGHT EXCHANGE | 39
includes adjusting audit procedures to address new
risks and control environments.

• Flexible Approach: Develop a more flexible audit

approach that can adapt to the varying degrees of
remote work and the specific needs of different
departments.

3. Strengthening Cybersecurity Focus

• Cybersecurity Audits: Increase focus on

cybersecurity audits to assess and enhance the
security of remote work environments. Evaluate
the effectiveness of IT controls, data protection 5. Reassessing Risk Management
measures, and employee cybersecurity training.
• Risk Assessment: Continuously reassess risk
• Data Access Controls: Ensure robust data access management practices to identify and address new
controls are in place and regularly reviewed, risks associated with remote work. Update risk
particularly for remote access and sensitive assessments to reflect changes in the remote work
information. environment and its impact on controls.

4. Improving Communication and Collaboration • Continuous Monitoring: Implement continuous

monitoring practices to detect and respond to
• Virtual Communication Tools: Utilise and emerging risks in realtime.
master virtual communication tools to ensure
effective collaboration and information sharing. 6. Training and Development
Implement regular check-ins and updates to
maintain team cohesion. • Skill Development: Train internal auditors on
remote auditing techniques, technology use, and
• Clear Protocols: Establish clear communication cybersecurity. Ensure auditors have the skills to
protocols and guidelines for remote and hybrid navigate the remote and hybrid work environment
work to ensure all team members are aligned and effectively.
informed.
• Knowledge Sharing: Encourage knowledge
sharing and best practices among audit teams to
stay informed about effective remote auditing
strategies

Synopsis

The shift to remote and hybrid work models

presents challenges and opportunities for
internal audit functions. Internal auditors can
successfully navigate this evolving landscape
by embracing technological advancements,
adapting audit methodologies, and focusing on
effective communication and risk management.
Adjustments in these areas will ensure that internal
audits remain effective and relevant in modern
work environments.

40 | INSIGHT EXCHANGE INTERNAL AUDIT TODAY

INTERNAL AUDIT TODAY INSIGHT EXCHANGE | 41
 About the author: Aditya Maheshwari is a B. Com. (KMC - DU), CA, ACS, DISA (ICAI) and a Law
Graduate. He has two decades of experience infinance controls, funding, compliances,risk, taxation and
ESG domains. He has worked with Citi, JP Morgan and Oberoi Hotels. He is passionate about biking,
cooking, reading, philosophy, poetry and writing.

42 | INSIGHT EXCHANGE INTERNAL AUDIT TODAY

 From Chaos to Clarity:
Harnessing The Power of Data
Quality and Governance
The interdependence between the two is
evident: robust data governance frameworks
support high data quality by defining
standards and accountability. Conversely,
data governance loses effectiveness if the
data lacks quality, as poor-quality data
weakens trust and undermines decision-
making.

Why They Matter

Organisations excelling in both domains

CA Dharmendra Kapoor are better equipped for strategic decision-
Partner, Saraf & Chandra making, innovation, and gaining a
[email protected] competitive edge. On the other hand,
neglecting these areas leads to “data chaos,”
Laying the Foundation - Understanding hindering data-driven processes and
Data Quality and Governance eroding trust in information.

In today’s data-centric world, organisations are Distinguishing the Essentials - Data

inundated with vast volumes of information. While Quality vs. Data Governance
data is invaluable, it presents challenges in ensuring
accuracy, consistency, and reliability. As companies While data quality and governance are
recognise data as a strategic asset, the focus on data interconnected, each plays a unique role in
quality and governance becomes essential. organisational data management.

Understanding Data Quality

Data quality refers to characteristics that

render data suitable for its intended use.
High-quality data allows organisations
to make informed, accurate decisions,
while poor-quality data results in errors,
inefficiencies, and mistrust.

Key Attributes of High-Quality Data:

Defining Data Quality and Data Govenance
1. Accuracy: Reflects accurate
• Data Quality ensures that data is accurate, complete, representations of real-world entities.
consistent, reliable, and timely—fundamental for 2. Completeness: Encompasses all
trusted decision-making. necessary information.
3. Timeliness: Remains up-to-date for
• Data Governance involves the policies, roles, and relevance.
processes that ensure data is managed consistently 4. Consistency: Aligns across systems
and securely across the organisation. without contradictions.
INTERNAL AUDIT TODAY INSIGHT EXCHANGE | 43
5. Reliability: Delivers dependable results across 3. Timeliness
users. • Data should be current when needed. In
6. Relevance: Applies to the specific needs of the today’s fast-paced environment, outdated
organisation. data can diminish relevance. Regular updates
ensure data’s timely availability, maintaining its
decision-making value.

4. Consistency
• Consistent data aligns across systems, avoiding
contradictory information. Standardised
formats, definitions, and data harmonisation
are critical for achieving a unified data view.

5. Reliability
• Reliable data produces consistent results across
conditions. Confidence in data integrity is built
through mechanisms that maintain stability
Defining Data Governance and dependability.

Data governance is the structured approach to 6. Relevance

managing data assets, with clear roles, policies, and • Relevant data fulfils its intended purpose,
responsibilities. A well-implemented governance helping avoid information clutter. Regular
framework standardises data handling, ensuring assessments of data relevance ensure alignment
accuracy and security throughout the organisation. with evolving organisational needs.

The Interplay Prioritising these dimensions empowers

organisations to develop data they can trust,
Data quality focuses on the data’s integrity, while making sound decisions that drive efficiency
governance ensures a secure, consistent data and competitive advantage.
ecosystem. Beyond quality support, governance
upholds compliance, ethical use, and risk The Strategic Importance of Data
management, establishing data as a sustainable Quality
organisational asset.
Data quality extends beyond operational
The Six Key Dimensions of Data Quality efficiency—it’s a strategic asset impacting
decision-making, customer engagement, and
For data to be a strategic asset, it must meet six critical cost management. The benefits of high-quality
dimensions ensuring its utility and trustworthiness: data are far-reaching:

1. Accuracy 1. Accurate Decision-Making

• Data must be correct and reflect reality. Inaccurate • Quality data is the foundation for reliable
data undermines decisions, leading to costly errors. decision-making. Accurate data insights lead
Regular validation checks are essential to detect and to confident decisions and successful outcomes,
rectify inaccuracies early. while poor-quality data risks errors and
inefficiencies.
2. Completeness
• All required information should be present, 2. Resource Optimisation
ensuring no gaps in analysis or decision-making. • Reliable data prevents waste from misguided
Organisations must define completeness based on resource allocations, reducing redundancy. High
their specific needs, creating processes to capture data quality enables streamlined operations,
complete datasets. focusing resources on value-driving activities.

44 | INSIGHT EXCHANGE INTERNAL AUDIT TODAY

 opportunities with agility, strengthening their
competitive edge.

Conclusion

Data quality is not just an operational task;

it’s a strategic imperative. By investing in data
quality and governance, organisations build a
foundation for robust decision-making, resource
efficiency, customer satisfaction, and competitive
3. Enhanced Customer Experience advantage. As the complexity of data management
• Accurate, updated data offers deep customer grows, prioritising these pillars becomes essential
insights, enabling personalised interactions. for organisations seeking long-term success and
This enhances customer satisfaction and loyalty, resilience in a data-driven world.
fostering long-term relationships.

4. Cost Reduction About the author: Dharmendra Kapoor is

• Investing in data quality prevents costly mistakes a Kolkata-based Saraf & Chandra Partner.
like erroneous orders, regulatory penalties, A Chartered Accountant with a Diploma in
and rework. Accurate data minimises risk and Information Systems Audit from ICAI, he also
avoids expenses tied to compliance failures and holds a Business Analytics and Generative AI
inefficiencies. certification from IIT Roorkee. An expert in
risk management with extensive experience
5. Strategic Advantage in operational and management consulting
• High-quality data enables faster, better-informed and international assignments, he focuses on
decisions, enhancing adaptability and innovation. implementing best practices in audit and business
Organisations leveraging accurate data can seize operations aligned with internal audit standards.)

IIA India Conducts Training at NADFM on High-Impact

Audit Reporting

The Institute of Internal Auditors (IIA) India successfully hosted a training session on “High-Impact Audit Reporting”
on November 12 and 13, 2024, at the National Academy of Defence Financial Management (#NADFM). This impactful
programme, designed to enhance audit effectiveness, utilized IIA’s Global Training Module to provide participants with world-
class insights and strategies. The session was facilitated by CEO Mukundan K V, whose expertise ensured an exceptional
learning experience. IIA India extends its gratitude to Shri Anand Agrawal, IDAS, CDA (Training) & Director of NADFM, and
Shri Dhiraj Gugale, IDAS, Joint Director of NADFM, for their unwavering support in advancing audit excellence. Together, we
continue to strengthen the foundation of effective governance and accountability through enhanced audit practices.

INTERNAL AUDIT TODAY INSIGHT EXCHANGE | 45

 The Human Element in Auditing:
How Relationships Shape Internal
Audit Outcomes
Why are human relationships an
important component?

An Internal Auditor (‘IA’) is expected to be

independent, apply due care and diligence,
have integrity, be objective, etc., but all these
are mainly driven by the thought process. Yes,
we would have pronouncements from IIA
and other regulatory bodies thatgovern the
profession, but beyond that is self-governance.
In a workplace would the relationship with a
Aditya Kumar S colleague in whichever manner hamper the
Partner, R.G.N. PRICE & CO. basic qualities expected out of an auditor is
[email protected] something to think about. At times, when
equations at the personal level may not be good
In an era where technology enhances efficiency, for any reason, there is a risk of that spilling over
to the office or professional space. The human
more so in auditing, the auditor’s instincts or gut
mind is unique, and how hard or how easy it
feeling, honed through training and experience,
would be to compart mentalise the relationship
remains invaluable. This “sixth sense” enables
and look at it objectively is anybody’s guess.
auditors to detect anomalies by connecting the dots
based on their insights and experiences. However,
human emotion scan sometimes cloud judgement
and be influenced by personal relationships with
family, friends, neighbours, or colleagues. This raises
an intriguing question: how do these relationships
affect an internal auditor’s objectivity, and could they
potentially compromise the integrity of their role?
This article attempts to look at the psychological
impact of the relationships that influence the
day-to-day work of an internal auditor (or, for
that matter, any other professional as well). IA
is always looked upto as somebody who could
guide, give advice and critically give feedback;
but when the IA is in a dilemma, when there
is a conflict in his thought due to personal
relationship…it’s what I call “Dharmasankat.”
For example, IA identifies significant
deficiencies in a particular role managed by a
staff member who also happens to be his/her
relative, friend, etc. Would there be a bias in the
decision-making? In my view, this dilemma, or
thought of taking action against a friend for the
benefit of an organisation or taking action and
losing a good friend, is Dharmasankat.

46 | INSIGHT EXCHANGE INTERNAL AUDIT TODAY

Examples where a personal relationship in the IA
Team has been questioned or has been sighted in
reports (in brief):

• IA Reports indicate that the ‘romantic

relationship’between a consultant and another
member was not reported which was against the
Code of Ethics of the organisation. The other side of
the story is that the relationship could also help solve
some tricky issues, thanks to better understanding
and rapport between two people who understand
is no longer his junior but another professional.
each other in another space. Hence, the way in
Past relationships could also impact possible
whichthese relationships would eventually impact
behavioural patterns. We need to look at
the organisation cannot be predicted.
changing the behaviour pattern and look at
things more maturely.
• Personal relationships between Management and
Auditors: SEC announced its enforcement actions
against auditors who violated the independence Possible Implications on the Role of IA
rules by developing close personal relationships,
both platonic and romantic, with their audit 1. Quality of Governance can be questioned:
clients.A partner of the audit firm was involved in Governance is the pillar of any organisation.
a romantic relationship with an audit client’s chief Conflict of relationship could impact the
accounting officer, while she performed audit and decision-making process, and governance
review services. The audit firm had to pay a penalty could be diluted and impact both strategic and
of nearly USD 1 million with other costs. operational decisions.In case of a conflict of
relationship in the internal audit team, it could
• Investigation of alleged misconduct by former lead to a similar situation wherein questions on
CEO: The Audit Committee of the Board of independence and objectivity can be raised.
Directors of Best Buy investigated the misconduct
by a former CEO. The CEO had a relationship with 2. Overriding controls/policies/practices
a subordinate, and there were reports of the CEO (abuse of power?) under the influence of a
misusing the office and possibly not havingacted relationship could set a bad example for others,
professionally, in addition to non-compliance with and further,there could be other operational,
the company’s policies.The Audit Committee found financial or reputational risks the organisation
that the CEO violated company policies concerning needs to face. In the case of an internal audit,
inappropriate conduct, conflicts of interest, and where there is conflict in a relationship, there is
vendor gifts but did not find evidence of misuse risk of the internal auditor becoming emotional
of company resources. Here, the CEO developed or sentimental and not being able to carry out
a close personal relationship with a subordinate duties as expected without bias.
that negatively impacted the work environment.
Such behaviour was disruptive and reflected poorly 3. Breach of Confidentiality where the other
on the CEO’s judgment. The internal audit staff party may come to have access to a confidential
performed an in-depth analysis of expense reports, relationship through casual conversations,
records reflecting corporate use of aircraft, and sharing of equipment like laptop, workspace,
records of the CEO’s use of a company credit card etc., which has the potential risk of being
over a three-year period. misused later.

Some of the above are just examples of how personal 4. Relationships could turn sour for various
relationships could impact the professional life of reasons, including economic, personal attributes
an individual and the business as well. We have and other circumstances, which could lead to the
also seen situations where a person trained under risk of legal action under various laws, including
a Chartered Accountant later holds a key company Prevention of Sexual Harassment and other civil
position but does not come out of the shell that he laws/rules which could damage the reputation

INTERNAL AUDIT TODAY INSIGHT EXCHANGE | 47

 of the parties and negatively disrupt their future 4. To factor this intothe internal risk management
career prospects. process of auditing,discuss with the audit team
and let them express their views, concerns,
5. Risk of Workspace Retaliation,i.e., verbal abuse, inhibitions, etc., which can be holistically
higher scrutiny, harassment, demotion, etc., and addressed.
on the other side, there could be favouritism to
one person, promotion, change for a better role 5. Disclose, where necessary, any possible conflict
etc., which may not be aligned to entity’s standard of interest to management.
operating policies and also demotivates other
team members leading to risk of loss of focus Conclusion: Quoting from Shakespeare’s
on day to day tasks and losing quality time to Julius Caesar..’ Caesar’s wife, should be above
unnecessary things. suspicion’. The IA should be above all, in terms
of thecharacter one expects from them. At
times, relationships could impact the image of
What Best can the Internal Auditor do to the office of the IA, and stakeholders may get an
Avoid Such Situations? opportunity to question their objectives. It is up
to the IA to protect the profession’s image and
1. The Internal Auditor should excuse himself demonstrate it in real life.
from carrying out any review or process where
conflict may arise from personal relationships.It
is easy to say this but hard to follow. About the author: Aditya is a Chartered
Accountant. Partner in R.G.N. Price & Co., since
2. Have a good mentor to whom you can talk 2017. His area of experience is in both statutory
without in hibitions and seek advice. A good and internal audits of various companies including
mentor would help guide you through challenging listed companies and subsidiaries of Fortune
circumstances. 500 and advising clients on financial reporting
framework and sustainability related subject. He
3. Take management into confidence and let holds Diploma in Information System Audit from
another team member or authority do the review ICAI and other certifications. He is a guest speaker
who does not have such conflicts.A second review in various forums, adjunct faculty in a University
of the key decisions taken by the IA by another for Internal Audit and IFRS and has also co-
professional would ensure there is no bias in authored books for IIA.
decision-making.

References

1.https://www.lonelyphilosopher.com/ https://www.oas.org/es/oig/Activity%20
dharmasankat/#:~:text=DharmaSankat%20 Reports%202022/2022%20OIG%20-%20
is%20a%20predicament%20to,“Sankat”%20 Activity%20Report.pdf
(danger).
(last seen on 9 August 2023) https://www.foley.com/-/media/files/insights/
events/audit-committee-hot-topics/files/
2. https://corporatelawreporter.com/achieving- program-materials/fileattachment/2b.pdf (last
professional-excellence/ (last seen on 9 August seen on 9 August 2023)
2023)
https://www.sec.gov/Archives/edgar/
3. https://theauditlibrary.com/2020/11/23/ data/764478/000076447812000044/
relationships/ (last seen on 24 August 2023) exhibit99251412.htm (last seen on 9 August
2023).

48 | INSIGHT EXCHANGE INTERNAL AUDIT TODAY

 This article was originally published digitally by “Board Stewardship” in November 2024. It has been
republished here for our readers who can access the publication on www.boardstewardship.com

INTERNAL AUDIT TODAY INSIGHT EXCHANGE | 49

 From Brushes to Balances
(Exploring Parallels Between IA and Makeup Artistry )

the kick-off meeting presents an opportunity to

envisage the final masterpiece and outline the
steps required to bring it to fruition.

Deepika Santdasani
Senior Manager, Protiviti India
[email protected]
Planning: Assembling the Tools of the
In professional endeavours, internal audit and Trade
makeup artistry are seemingly disparate domains, Following the kick-off meeting, meticulous
each characterised by unique practices and planning ensues to assemble the necessary tools
methodologies. However, striking parallels emerge and resources for the task. In internal audit,
between these ostensibly unrelated fields upon
this may involve identifying the most effective
closer examination, underscoring the intrinsic
audit methodologies, frameworks and subject
artistry inherent in both disciplines.
matter experts to address the client’s needs.
Similarly, a makeup artist curates a selection of
Client Acquisition: The Prelude to premium products and tools, ensuring they have
Creativity
everything required to achieve the desired look.
In both internal audit and makeup artistry, the This phase reflects the importance of preparation
client acquisition process is a crucial prelude to the and foresight in both disciplines.
creative endeavour. Before embarking on a project,
practitioners must evaluate whether a proposal
merits presentation. This initial phase mirrors
the careful selection of colours and techniques a
makeup artist considers before beginning a new
look, ensuring alignment with the client’s vision
and objectives.

The Canvas of Expectations: Kick-off

Meetings
The kick-off meeting marks the commencement
Fieldwork: Executing with Precision
of the creative process, whether in internal audit
or makeup artistry. Here, clients articulate their With the ground work laid, fieldwork
expectations with clarity and precision, providing commences, with all hands on deck to gather
a blueprint for the ensuing endeavour. Much like necessary data and execute the project with
a blank canvas awaiting the artist’s brushstrokes, precision. In internal audit, this entails
thoroughly examining

INTERNAL AUDIT TODAY WOMEN'S FORUM | 51

the financial records and operational processes to Presentation: Crafting the Final
identify areas for improvement. Similarly, a makeup Masterpiece
artist meticulously applies products, blending
colours and textures to create a flawless finish. Each The final internal audit and makeup artistry
step is executed with meticulous attention to detail, phase involves presenting the completed work to
ensuring the integrity and accuracy of the outcome. stakeholders. In an internal audit, this may take
the form of a comprehensive report, detailing
Analysis: Transforming Data into Insights findings, observations, and recommendations for
improvement. Similarly, a makeup artist presents
As data is collected, the analysis process begins, the finished look to the client, showcasing their
transforming raw information into actionable skill and artistry. Each element is meticulously
insights. Internal audits involve identifying trends, crafted and presented with care, reflecting the
anomalies, and areas requiring corrective action. dedication and professionalism of the artist.
Similarly, a makeup artist evaluates the canvas,
considering factors such as skin type, tone, and In essence, while internal audit and makeup
facial structure to artistry may
determine the most operate in different
suitable approach. spheres, their
Just as an audit shared emphasis
report presents on meticulous
findings and planning, precise
recommendations, execution, and
the makeup artist creative expression
adapts techniques underscores the
to achieve the artistry inherent in
desired look, both disciplines. By
whether it involves recognising and
colour correction or enhancing natural features. embracing these parallels, practitioners can gain
valuable insights and approaches that enrich their
Artificial Intelligence professional endeavours, fostering excellence and
In both internal audit and makeup artistry, the innovation in their respective fields.
incorporation of Artificial Intelligence (AI) and
robotic technology represents a significant leap About the author: Deepika is a senior manager
forward in enhancing efficiency, precision, and at Protiviti India, a member firm with over nine
creativity throughout the professional process. years of experience in internal audit and financial
AI algorithms analyse vast datasets to match advisory. She is the Joint Secretary and Chairperson
practitioners with clients whose needs align closely of the Women’s Circle at the IIA India’s Hyderabad
with their expertise. Similarly, robotic assistants Chapter. She has provided audit services across
equipped with AI capabilities can assess facial various sectors, including healthcare, technology,
features and skin types, aiding makeup artists and retail, with expertise in risk management,
in recommending personalised looks tailored to internal audits, process improvements, and
individual preferences and characteristics. documenting Standard Operating Procedures.

Join the IIA India Women's Forum and

tread on an invaluable professional path!
Join Us: https://admin.iiaindia.co/member/newmember

52 | WOMEN'S FORUM INTERNAL AUDIT TODAY

 Shifting the Investment Paradigm:
Prioritising Wellness on Women’s Day
Moreover, the session underscored the
indispensable role of basic exercises in fostering
physical fitness and enhancing overall vitality.
Through practical demonstrations and interactive
exercises, attendees were empowered to integrate
fundamental workout routines seamlessly into
their daily schedules, transcending the barriers
of time constraints and professional obligations.

At its core, the session epitomised the ethos of

Deepika Santdasani proactive wellness investment, advocating for
a proactive rather than reactive stance towards
A Call to Action for Holistic Well-Being health maintenance. By fostering a culture of
mindfulness and self-care, individuals were
In today’s fast-paced world, wellness often takes a
equipped with the tools necessary to fortify their
backseat to the demands of professional life and the
physical resilience and cultivate a harmonious
relentless pursuit of financial success. However, as
equilibrium between professional aspirations
we celebrated Women’s Day, we were reminded of
and personal well-being.
the imperative to refocus our attention on holistic
well-being, especially for women who frequently
In essence, this special session served as a
juggle numerous responsibilities.
poignant catalyst for redefining the contours of
investment, transcending the narrow confines
Traditionally, investment has been construed
of financial endeavours to embrace the holistic
solely within the realms of monetary assets and
pursuit of wellness.
fiscal ventures, relegating health and wellness to
the periphery of our collective consciousness. Yet,
Participants realised that through concerted
the evolving narrative of Women’s Day beckoned
efforts and collective advocacy, they can pave the
a paradigm shift, urging us to recognise that true
way for a paradigm shift wherein the currency
prosperity transcends the confines of material
of well-being reigns supreme, empowering
wealth, encompassing physical, mental, and
individuals, particularly women, to reclaim
emotional vitality.
agency over their health and vitality. They
reaffirmedtheir commitment to prioritising
Against this backdrop, the question is: How do we
wellness as a cornerstone of prosperity, thereby
invest in wellness?
ushering in a future defined by vitality, resilience,
and holistic fulfilment.
A recent session by IIA India’s Hyderabad Chapter,
coinciding with the commemoration of Women’s
Day, offered invaluable insights into this pertinent
inquiry. Centered on a strategic approach to
nutrition, the session illuminated the pathway
towards nurturing well-being through conscious
dietary choices and lifestyle modifications. Delving
into the intricacies of balanced diet planning,
participants were guided in crafting personalised
meal plans tailored to their nutritional needs and
dietary preferences.
INTERNAL AUDIT TODAY WOMEN'S FORUM | 53
 Role of IA in Enhancing
Good Corporate Governance
Vaibhav Sachdeva
Global Risk Management Institute
Governance is a two-pronged approach that
Understanding Corporate Governance guides an organisation’s direction and ensures
proper oversight. The strategic direction defines
Corporate governance is a framework that the business model, overall goals, acceptable
guides how a company’s board of directors directs risk levels, and ethical guidelines (code of
and oversees its operations to achieve strategic conduct). Oversight, where internal audit
goals. It encompasses the relationships among plays a key role, involves monitoring activities
management, the board, shareholders, and other like risk management, controls, and senior
stakeholders. At its core, corporate governance management actions. As the ultimate governing
defines a company’s objectives, outlines the body, the board sets the overall direction,
strategies to reach them, and monitors progress. holds management accountable, and identifies
stakeholder expectations. Within oversight, a risk
This system consists of two key components: committee plays a crucial role by pinpointing key
internal mechanisms—such as charters, bylaws, risks, connecting them to management processes,
and the internal audit department—that ensure assigning ownership, and ensuring risk tolerance
ethical and efficient operations, and external aligns with the organisation’s overall risk appetite.
mechanisms, which include laws and regulations This combined approach ensures that the
that hold the company accountable to the public. organisation operates effectively while managing
Together, these elements create a robust structure potential pitfalls.
for responsible corporate Governance is a continuous
conduct. cycle overseen by the
board and executed by
Effective leadership thinks senior management. Senior
about potential problems management translates board
when making strategic directives into actionable
plans for the organisation. plans, assigns specific risks
This means understanding to designated owners,
what could go wrong and and establishes reporting
how those risks might requirements for these
affect achieving goals. For owners. The board and senior
risk management to be management periodically
successful, it needs clear assess risk tolerance levels
direction and support from and governance expectations,
the top. potentially leading to
adjustments in risk management activities.
Good governance provides that framework, Internal audits act as watchdogs, evaluating and
ensuring risk management efforts are aligned with improving governance processes. Risk owners,
the overall strategy. Governance relies on internal meanwhile, take the reins on their assigned risks,
controls to put the risk management plan into ensuring the design and operation of effective risk
action. These controls are like safeguards that help management activities, establishing monitoring
prevent or minimise issues. Effective governance procedures, and guaranteeing the accuracy,
communicates how well the controls work to the timeliness, and accessibility of information
board of directors. This transparency allows for reported to senior management and the board. In
adjustments and ensures everyone is on the same short, governance functions smoothly through the
page about risk mitigation. collaboration of the board, senior management,
INTERNAL AUDIT TODAY STUDENTS' FORUM | 55
risk owners, and internal audit, all working together Learnings:
to achieve organisational objectives while effectively • The different mechanisms (internal
managing risks. and external) that influence a company’s
behaviour and decision-making.
Why Corporate Governance is
• The roles and responsibilities of various
Important:
stakeholders involved in corporate governance
• Reduced Risk and Increased Transparency: Good (board, management, shareholders, internal
governance helps identify and manage potential audit).
risks derailing company goals. It also ensures clear • How to identify and manage risks through
communication between different parties (board, effective risk management strategies.
management, shareholders) about these risks and • The importance of internal controls and
how they are addressed. clear communication in ensuring smooth
• Ethical Operation and Public Trust: Effective operations.
corporate governance promotes ethical behaviour • How a well-functioning governance system
within the company. This fosters trust with the public fosters a culture of ethics and compliance.
and other stakeholders, essential for a company’s
long-term success. Understanding these corporate governance
• Achieving Goals and Objectives: By setting a aspects equips you to evaluate companies
clear direction and holding everyone accountable, and their long-term prospects better. It
good governance helps organisations achieve their also helps you grasp the inner workings
strategic objectives. of organisations and how different parties
collaborate to achieve success.

Mapping Internal Auditing’s Impact on Governance

Here is a table summarising the roles, responsibilities, and strategic importance of internal auditing in
governance.

Area Description

Role and Functions Acts as an independent advisor, providing objective assessments to

improve the organisation’s functioning. Evaluates and strengthens risk
management, internal controls, and governance processes.

Standards and Adheres to the International Standards for the Professional Practice of
Frameworks Internal Auditing and the broader International Professional Practices
Framework (IPPF). Provides a framework for a range of internal audit
services and establishes criteria for performance evaluation.

Key Standards Internal Audit Performance Standard 2110 emphasises the role in
strengthening governance, enhancing strategic and operational decision-
making, overseeing risk management, and fostering ethical conduct.
Evaluates IT governance alignment with organisational strategies.

Ethical Conduct Governed by the Institute of Internal Auditors (IIA) Code of Ethics,
focusing on principles of integrity, objectivity, confidentiality, and
competency. Ensures internal auditors navigate ethical dilemmas and
uphold professional standards.

Governance Adapts to the governance framework based on organisation type (public,

Structure private, non profit, government), size, complexity, and regulatory
environment. Assesses the design and effectiveness of the organisation’s
ethics programmes.

56 | STUDENTS' FORUM INTERNAL AUDIT TODAY

 Area Description

Audit Committees Common in publicly traded companies, composed of independent

directors overseeing internal and external audit activities. Ensure
financial and ethical integrity, review audit plans and results, and facilitate
communication between auditors and the organisation.

Advisory Role Facilitates board self-assessments, recommends improvements, and assists

with enterprise-wide risk management strategies. Monitors the corporate
code of conduct and business practices. Evaluates the organisation’s
internal control framework and ethical climate.

Audit Planning Develops a risk-based audit plan, considering higher-risk governance

processes and controls. The plan includes specific governance processes,
risks, and activities to review based on board or senior management
requests.

Impact of Findings Mindful of the implications of audit findings throughout the audit process.
Ensures reports are accurate and legally sound by consulting legal counsel.
Keeps the board and senior management informed at every step.

Extended Role Beyond financial controls, assesses performance measurement systems

and fosters a culture of fraud awareness. Reports management’s responses
to regulatory bodies and external auditor reviews.

Improving governance and audit practices within an organisation is critical for maintaining transparency,
accountability, and sustainability. Here are practical steps organisations can follow to enhance their
governance and audit practices:
• Understand Regulatory Requirements:
Organisations should comprehensively understand
the regulatory requirements relevant to their
industry and jurisdiction. This includes laws,
regulations, and standards about governance and
audit practices. For example, in the United States,
organisations must comply with the Sarbanes-
Oxley Act (SOX), which mandates stringent
governance and auditing standards for publicly
traded companies.

• Establish Clear Governance Structures: Define

and implement clear governance structures within effectiveness.
the organisation. This includes delineating roles, • Invest in Technology and Automation:
responsibilities, and decision-making processes Leverage technology and automation tools to
across different levels of management. Establishing streamline governance and audit processes.
a clear governance framework helps ensure Implementing enterprise resource planning
accountability and transparency in decision- (ERP) systems, governance, risk, compliance
making. (GRC) software, and data analytics tools can
enhance efficiency, accuracy, and transparency in
• Develop Robust Internal Controls: Internal auditing and governance activities.
controls are essential for mitigating risks and
ensuring compliance with policies and regulations. • Promote Ethical Conduct and Integrity:
This may involve segregation of duties, regular Foster a culture of ethical conduct and integrity
monitoring, and periodic assessments of control throughout the organisation. This includes

INTERNAL AUDIT TODAY STUDENTS' FORUM | 57

promoting honesty, fairness, and accountability and audit findings to stakeholders through
among employees and stakeholders. Establishing a transparent reporting channels.
code of conduct and providing ethics training can help
reinforce ethical behaviour across the organisation. • Encourage Stakeholder Engagement:
Foster open communication and engagement
• Conduct Regular Risk Assessments: Conduct with stakeholders, including shareholders,
regular risk assessments to identify and mitigate employees, customers, and regulatory bodies.
potential threats to the organisation’s objectives. Solicit feedback, address concerns, and
This involves identifying internal and external incorporate stakeholder perspectives into
risks, evaluating their likelihood and impact, and governance and audit processes to enhance
developing risk mitigation strategies. Incorporate risk transparency and accountability.
management into governance and audit processes to
Conclusion
ensure comprehensive risk oversight.
Internal auditing is a powerful tool for
• Enhance Board Oversight and Independence:
strengthening corporate governance by
Strengthen board oversight and independence to
conducting audits to identify and evaluate
improve governance effectiveness. This may involve
risks. These audits provide valuable insights
appointing independent directors, establishing board
into the processes and structures crucial for the
committees with specific oversight responsibilities
organisation’s success. As the complexity and
(e.g., audit committee, risk committee), and
conducting regular board evaluations to assess volume of risks organisations face keep rising,
the role of internal audits is expected to broaden.
performance and effectiveness.
This includes risk oversight, organisational
culture and employee behaviour, sustainability
• Implement Continuous Monitoring & Reporting:
practices, and non-financial reporting
Implement mechanisms for continuous monitoring
metrics. In today’s environment with constant
and reporting of governance and audit-related
technological advancements, geopolitical
activities. This includes establishing key performance
shifts, cyber security threats, and disruptive
indicators (KPIs), metrics, and dashboards to
innovations, a dynamic and adaptable internal
track progress, identify trends, and facilitate timely
audit function becomes essential for ensuring
decision-making. Regularly communicate governance
sound corporate governance.

Virtual Power Symposium Explores Digital

Transitions Towards Net Zero

The recent webinar titled “Digital Transitions in the Age of Net Zero,” hosted by the IIA India Calcutta Chapter on October
19, 2024, marked a significant milestone in addressing the challenges and opportunities within the Power and Utility
sector’s journey towards net-zero emissions. Industry leaders and experts discussed digitalisation’s transformative potential,
emphasising advanced technologies such as AI-driven analytics, smart grids, and IoT-enabled energy management. Key
discussions focused on leveraging these innovations to enhance energy efficiency, minimise carbon footprints, and foster
sustainability across operations. Burzin Dubash, President of IIA India, shared insights on the energy sector being at a pivotal
intersection of digital evolution and the shift towards net-zero emissions, urging internal auditors to prioritise critical risk
areas, including cybersecurity, data integrity, and sustainability audits. With valuable insights from pioneering professionals,
the symposium provided a strategic roadmap for power utilities aiming to align their digital strategies with sustainable impacts,
thereby setting a new benchmark for resilience in a low-carbon future.

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 Crossword
Challenge Your Mind, One Square at a Time!

DOWN

1. Continuous observation of risk factors and

controls.
2. Process to reduce the severity of risks.
3. Adherence to laws and regulations regarding
risk.
5. Systematic determination of a risk’s
significance.
ACROSS 6. Measures taken to minimize the impact of
risks.
7. Measuring the potential impact of risks
4. Process of returning to normal after a risk numerically.
event occurs. 8. The state of being subjected to risk.
9. Weakness that could be exploited by a risk. 14. Ability to recover from or adjust easily to
10. Distribution of resources to manage risks risks.
effectively. 16. A plan of action designed to manage risks
11. An event that may lead to a risk or loss. effectively.
12. Predicting potential risks based on data 17. Shifting the risk to another party, often
analysis through insurance.
13. A plan devised for an unexpected event or 19. Legal responsibility for risks or damages.
emergency. 20. The level at which risk becomes
15. Evaluation of potential risks and their unacceptable.
impact.
18. Likelihood of occurrence of a risk event. Please send your answer by email to:
[email protected]
INTERNAL AUDIT TODAY STUDENTS' FORUM | 59
 Data Analytics: Your Secret
Weapon Against Risk!
Srishti Sahni • Make Data-Driven Decisions: Use objective
insights to prioritise risks and allocate resources
Global Risk Management Institute
effectively.
• Predict and Prepare: Forecast future risks and
In today’s fast-paced environment, organisations
develop contingency plans to minimise impact.
encounter many risks, from financial uncertainties
This shift towards data-driven risk management
to cyber threats, which can jeopardise their success.
promises a more secure and resilient future
Traditionally, risk management has been reactive,
fororganisations across all industries.
relying on instinct and past experiences. However,
the transformative power of data analytics is
ushering in a new era.

Organisations can gain insights into potential risks

by harnessing vast amounts of data. By analysing
historical trends, identifying patterns, and building
predictive models, data analytics empowers
organisations to:

• Shift from Reactive to Proactive: Identify and

mitigate risks before they strike.

Data-Driven Decisions: The Future of Proactive Risk Management!

Current methods for risk management are reactive and lack foresight. We must leverage data analytics
to proactively identify and assess risks, allowing for better decision-making and resource allocation.

Limitations of Traditional Risk Advantages of Data Analytics

Management Approaches for Risk Management

Reliance on subjectivity and individual Reliance on subjectivity and individual

perceptions perceptions

Lack of standardisation and objectivity in Cost savings through optimised risk

risk assessments mitigation strategies

Inability to anticipate emerging risks Improved competitive advantage through

proactive risk management

Data Analytics Applications in Risk Management

Data analytics plays a crucial role in risk management by providing tools and insights for businesses to
navigate risks effectively. Key applications include:

• Risk Identification: Analysing large datasets helps organisations proactively identify emerging risks and
trends, enabling timely action to mitigate them.

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 • Risk Assessment and Prioritisation: Advanced techniques like machine learning assess the likelihood
and impact of threats, allowing businesses to prioritise risks based on their potential effects on operations.

• Scenario Modeling: Data analytics enables the creation of models that simulate various risk scenarios,
helping organisations understand potential outcomes and develop effective mitigation strategies.

By integrating these applications, businesses can enhance risk management processes, leading to better
decision-making and resource allocation.

Risk Risk Assessment Modelling for Risk Monitoring and

Identification and Prioritisation Mitigation Reporting
Make use of Evaluate the Create models that Monitor risk triggers
information from probability and impact simulate risk scenarios and indicators, and
multiple sources to of risks using advanced for effective mitigation generate reports
pinpoint possible analytics techniques. strategies. for decision-makers.
hazards.
Proactively identify Quantify risks and Understand potential Track risk exposure
emerging risks and prioritise them based outcomes and design and report on
trends. on potential impact. effective risk mitigation risk management
strategies. activities.

Anticipate and prevent Establish risk tolerance Use historical data Evaluate risk
risks before they levels and align and industry trends to mitigation effectiveness
escalate. resources accordingly. inform risk models. and adjust strategies as
needed.

Data Analytics Tools and Techniques for Risk Management

Data analytics tools and techniques such as data mining, big data analytics, data visualisation, machine
learning, predictive analytics, and cloud-based platforms are used for collecting, structuring, analysing,
and visualising vast amounts of data to gain actionable insights. These tools enable organisations to
harness the power of data in their risk management processes and make informed decisions.

• Data Mining: Data mining is a technique to extract valuable information and patterns from large
datasets. Organisations can identify hidden patterns and relationships in their data by applying statistical
algorithms and machine learning methods. This helps in understanding risk factors and predicting
potential risks.

• Big Data Analytics: Big data analytics involves processing and analysing large, complex datasets to
uncover meaningful insights. This technique allows organisations to analyse data from various sources,
including structured and unstructured data, to view risks comprehensively. It also helps identify trends
and patterns that are not visible through traditional methods.

INTERNAL AUDIT TODAY STUDENTS' FORUM | 61

 Data Analytics Description
Tools

Data Visualisation Data visualisation tools help present complex data in a visual format, such
as charts, graphs, and dashboards. This enables users to understand and
interpret data more efficiently, facilitating quick and effective decision
making.

Machine Learning Machine learning algorithms enable computers to learn from historical
data and make predictions or actions based on patterns and trends. In risk
management, machine learning can identify anomalies, detect fraud, and
predict potential risks.

Predictive Analytics Predictive analytics uses historical data and statistical modelling techniques
to predict future outcomes and trends. Organisations can identify and
proactively mitigate potential risks by analysing past risk data.

Cloud-based platforms provide organisations with scalable and cost

Cloud-Based Platforms
effective solutions for managing and analysing large volumes of data.
These platforms offer data storage, processing, and visualisation features,
enabling efficient risk management processes.

Benefits of Using Data Analytics in The Future of Data Analytics in Risk

Risk Management Management
The future of data analytics in risk management is
Data analytics significantly enhances risk
promising, driven by technological advancements.
management by enabling informed decision
Organisations increasingly recognise the
making and identifying potential threats. Here
importance of data-driven decision-making and
are the key benefits:
invest in innovative analytics solutions. A key
trend is machine learning (ML) and artificial
• Improved Decision-Making: Provides insights
intelligence (AI) integration, which enables real-
for better understanding and managing risks.
time analysis of large data sets to identify trends
and predict potential threats. Businesses can
• Cost Reduction: Helps implement effective risk
proactively manage risks by leveraging AI and
mitigation measures, lowering financial impacts
ML, minimising their impact and enhancing
and optimising processes.
their response capabilities.
• Competitive Edge: Identifies trends and Emerging Technologies
forecasts industry shifts, allowing businesses to
stay ahead and innovate. Emerging technologies such as blockchain, the
Internet of Things (IoT), and cloud computing
• Regulatory Compliance: Monitors compliance are transforming risk management. Blockchain
with changing regulations, helping avoid costly ensures secure data transactions vital for
penalties. complex supply chains, while IoT devices
deliver real-time data for risk monitoring across
• Sophisticated Fraud Detection : Enhances sectors. Cloud computing provides scalable
capabilities to identify and address fraudulent storage and analysis solutions, enhancing access
activities. to insights. Additionally, user-friendly analytics
platforms allow non-technical professionals to

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 participate in risk management. These advancements enable organisations to proactively identify and
mitigate risks, improving decision-making, operational efficiency, and competitive advantage in a data-
driven world.

Advancements Emerging Technologies

Integration of AI and ML algorithms Blockchain

Real-time data analysis and prediction Internet of Things (IoT)

Improved risk management practices Cloud computing

Accessibility and user-friendly interfaces

Overcoming Challenges in Data Analytics for Risk Management

Integrating data analytics into risk management involves overcoming data privacy, security, quality,
and governance challenges. Ensuring data quality through cleansing and validation is essential, while
robust governance frameworks establish clear policies for data management, enhancing consistency
and compliance. Organisations must also implement strong security measures—such as encryption
and regular audits—to protect against cyber threats and comply with regulations like the General Data
Protection Regulation (GDPR). To maximise the effectiveness of data analytics in risk management,
investing in skilled analysts, providing training, and fostering collaboration among IT, risk management,
and legal teams is crucial. Organisations can significantly enhance their risk management strategies by
addressing these challenges with best practices.

Challenge Solution
Data quality Invest in data cleansing and validation processes,
establish data quality standards, and implement
data governance frameworks.

Data privacy and security Adopt robust security measures, including

encryption techniques, access controls, and
regular security audits, and comply with privacy
regulations.

Data governance Establish clear policies, procedures, and

responsibilities for data management and
implement data governance frameworks.
Invest in skilled data analysts, provide training
Skilled analysts and collaboration
and development programmes, and promote
collaboration between departments.

Data analytics is vital for effective risk management, helping businesses identify and mitigate risks while
making informed decisions. By leveraging machine learning and predictive analytics, organisations
can proactively detect threats and prevent disruptions. This integration promotes a data-driven culture,
enhances decision-making, and streamlines processes, leading to cost savings and improved regulatory
compliance. However, companies must also tackle data quality, privacy, security, and governance challenges.
Embracing data analytics is essential for resilience and success in a changing business landscape.

INTERNAL AUDIT TODAY STUDENTS' FORUM | 63

 Prepared By Vijay Rajaram & Ritik Singh
Global Risk Management Institute (GRMI) Gurgaon
1. What is the primary role of internal auditors B. Minimise and control risks within an
within an organisation? organisation
C. Increase profit margins
A. To manage company finances D. Ensure customer satisfaction
B. To oversee external audits
C. To assess and improve risk management, 6. Which of the following best describes the
control, and governance processes “Three Lines of Defense” in risk management?
D. To review company policies
E. To review business processes A. Management, Internal Audit, External Audit
B. Risk Ownership, Risk Monitoring, Risk
2. Which of the following could be strategic Communication
organisation objectives? C. Operational Management, Risk & Compliance
Functions, Internal Audit
A. Market capital maximisation D. Legal, Compliance, Finance
B. Market reputation
C. Profit maximisation 7. In an audit, which of the following is a
D. Social impact preventive control?
E. All of the above
A. Reconciliation of accounts
3. Which of the following is a key principle of B. Segregation of duties
corporate governance? C. Post-transaction review
D. Fraud detection software
A. Revenue generation
B. Transparency 8. What does the acronym COSO stand for in
C. Sales optimisation risk management and auditing?
D. None of the above
A. Control of Stock Operations
4. Which of the following are tools of B. Committee of Sponsoring Organizations
Corporate Governance? C. Compliance with Standard Operations
D. Corporate Oversight Security Operations
A. Board composition
B. Whistle-Blower mechanism 9. How can analytics be leveraged in internal
C. Independence of operating committees audit?
D. Conflict of interest guidelines
E. All of the above A. To identify audit observations
B. To quantify issues
5. What is the primary objective of risk C. To identify outlier transactions
management? D. To identify appropriate samples
E. A & B
A. Eliminate all risks F. All of the above

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10. Which of the following is a technique used 16. Which method is commonly used in
to assess risk during the internal audit process? Enterprise Risk Management (ERM) to
quantify risks and their financial impact?
A. Forecasting
B. Root Cause Analysis A. Monte Carlo Simulation
C. Data Mining B. SWOT Analysis
D. Risk Heat Map C. Delphi Method
D. Balanced Scorecard
11. Which of the following risks can be classified
as a financial risk? 17. What is the difference between inherent
risk and residual risk?
A. Customer dissatisfaction
B. Foreign exchange fluctuations A. Inherent risk is the risk before controls,
C. Employee turnover and residual risk is the risk after controls are
D. Inventory turnover applied.
B. Inherent risk is controllable, and residual
12. Which of the following are key parameters of risk is uncontrollable.
risk assessment? C. Residual risk refers to operational risks
only.
A. Recency of the risk D. Inherent risk only applies to financial risks.
B. Impact of risk
C. Likelihood risks 18. In risk management, what is the purpose
D. Velocity of risk of a ‘risk appetite statement’?

13 Which of the following is a characteristic of an A. To quantify the maximum risk an

effective internal control system? organisation is willing to accept
B. To ensure no risks are taken in the
A. Reduction of potential frauds organisation
B. Alignment of processes with organisational goals C. To communicate external risks to
C. High cost of controls shareholders
D. Delegation of all responsibilities to junior D. To eliminate all operational risks
management
19. Which advanced tool can internal
14. What is a key advantage of conducting a risk- auditors use to analyse large datasets and
based audit? identify fraud
patterns?
A. Focuses solely on compliance
B. Reduces audit timelines A. Forensic techniques
C. Prioritises high-risk areas and allocates resources B. Predictive Analytics
effectively C. Manual Sampling
D. Guarantees error-free processes D. Risk Control Matrix

15. Which of the following is NOT part of the 20. Which of the following is a key challenge
internal audit function’s responsibility? in auditing an organisation’s cybersecurity
risk management framework?
A. Evaluating the effectiveness of risk management
practices A. Rapid evolution of cyber threats
B. Implementing the organisation’s strategic plan B. The complexity of financial reporting
C. Reviewing internal controls C. The limited availability of IT resources
D. Providing recommendations for process D. Decreased operational costs
improvement
Please send your answer by email to:
[email protected]
INTERNAL AUDIT TODAY STUDENTS' FORUM | 65
 Sustainable Sourcing -
Risks, Advantages and Focus Areas

Sanchita Banerjee • Supply Chain Disruptions and Geo-political

Global Risk Management Institute
Instability: Sustainable sourcing often requires
Sustainable sourcing integrates environmental, diversifying the supplier base and exploring remote
social, and economic factors into supplier selection. sources, which can complicate communication and
It extends beyond merely acquiring materials logistics, increasing vulnerability to disruptions.
across various industries such as manufacturing, Risks include political instability in sourcing
retail, automobile, electronics, etc. As global regions, natural disasters affecting infrastructure,
supply chains expand, companies face increased and trade wars impacting import-export costs and
risks, including disruptions, cost volatility, threats regulations. To mitigate these risks, businesses
to brand reputation, and compliance challenges. should foster relationships with multiple suppliers
Stakeholders, including consumers, shareholders, across various geographies and build redundancy
workers, non-governmental organisations, into their supply chains. Additionally, staying
trade associations, labour unions, government informed about global developments and
observers, and so on, demand accountability for establishing contingency plans can help reduce
ethical practices, prompting businesses to adopt the impact of unforeseen disruptions.
sustainable sourcing in their supply chain • Greenwashing Concerns and Damaged
management. The ultimate aim is to forget
strong relationships with suppliers by enhancing
performance on sustainability issues. This
commitment to corporate responsibility has
become a core aspect of business strategy, allowing
companies to strengthen competitive advantages,
particularly in sectors with significant outsourcing
like food and apparel.
Risks with Sustainable Sourcing
While the benefits of sustainable sourcing are
undeniable, several inherent risks are present in Reputations: Consumers are increasingly wary
sustainable sourcing, and companies need to be of greenwashing, which involves misleading
aware of those risks. The following are the risks claims about a company’s sustainability practices.
that companies need to be mindful of: Without robust verification systems, unsustainable
practices can harm brand reputation if exposed.
• Increased Costs and Short-term Profitability: Common forms of greenwashing include vague
Implementing sustainable practices often marketing claims, selective reporting of positive
requires an upfront investment. This may include initiatives, and lack of transparency in sourcing
paying a premium for certified suppliers focused methods. To avoid greenwashing allegations,
on sustainability, adopting more expensive businesses must prioritise transparency by
ecofriendly packaging, or investing in renewable publishing detailed sustainability reports,
energy infrastructure. These costs may lead to subjecting them to independent audits, and
higher initial product pricing, potentially harming clarifying their sourcing policies to build customer
competitiveness. Companies must carefully assess trust.
these financial ramifications and develop strategies
to mitigate them, such as exploring cost-cutting • Lack of Transparency and Hidden
opportunities or educating customers on the Unsustainable Practices: Mapping complex
benefits of sustainable products.

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 supply chains can be challenging, especially for • Cost Reduction: Although sustainable
businesses with extensive supplier networks. This sourcing requires an initial investment, it
often leads to an incomplete understanding of ultimately leads to long-term cost reductions.
practices at lower supply chain levels, creating blind This occurs through reduced waste generation,
spots where unethical behaviours, such as labour improved resource management, and stronger
abuses and environmental harm, may go unnoticed. supplier relationships, enabling more efficient
To address this, companies can invest in supply chain material use.
traceability technologies that provide real-time data on
sourcing processes, helping identify risks and ensure • Risk Management: Ethical sourcing
supplier accountability for sustainable practices. helps businesses mitigate risks associated
Strengthening supplier relationships and conducting with unethical supply chain practices. This
on-site audits further enhance transparency in the includes avoiding disruptions from labour
supply chain. laws, environmental regulations, and negative
publicity linked to unsustainable methods.
• Prioritising Transparency: Today’s consumers
demand transparency from brands, and a lack of • Market Access and Innovation: Sustainable
it can erode trust. Businesses face challenges in sourcing opens access to markets that favour
complying with evolving sustainability regulations, products made with sustainable practices
which can be particularly daunting for smaller due to regulations or consumer preferences.
companies with limited resources. Issues include It also drives innovation in material science,
adapting to new regulations, interpreting complex production techniques, and product design.
compliance requirements, and incurring additional
costs for certifications and technologies. To navigate Focus Areas Related to Sustainable
these challenges, companies should collaborate with Sourcing
sustainability experts, join industry associations,
and stay updated on regulatory changes. By being A robust strategy is essential for effectively
proactive and informed, businesses can ensure their navigating the complexities of sustainable
sourcing practices remain compliant with shifting sourcing. Simply choosing eco-friendly
regulations. suppliers is not enough; businesses must target
specific areas for improvement to integrate
sustainability into their supply chains. This
While sustainable sourcing has its set of risks, one
section will explore key focus areas and provide
cannot deny its advantages to businesses. Let’s
actionable strategies for creating a more
examine the main benefits of sustainable sourcing
responsible and resilient sourcing network.
and how it might help companies prosper in today’s
The following are the focus areas:
socially and ecologically concerned market.
• Building Long-term Supplier Relationships:
• Reduced Environmental Impact: Sustainable
Sustainable sourcing relies on strong,
sourcing prioritises methods that
collaborative partnerships with suppliers.
minimise environmental harm throughout the
Companies should move beyond transactional
supply chain. This includes sourcing from vendors
relationships to engage suppliers as partners.
practising sustainable forestry or agriculture, using
This includes joint goal setting for shared
recycled materials, and reducing energy consumption
sustainability objectives, knowledge sharing,
in manufacturing. By adopting these practices,
and capacity building through financial and
businesses can contribute to biodiversity preservation,
technical support, especially for suppliers in
climate change mitigation, and resource conservation.
developing countries. By fostering openness
and trust, businesses can create a more resilient
• Enhanced Brand Reputation and Customer
and enduring supply chain.
Loyalty: Consumers are increasingly concerned
about the societal and environmental impacts
• Transparency in Sustainability Reporting:
ofproducts. Businesses that engage in sustainable
Effective sustainability reporting involves using
procurement can enhance their reputation as socially
traceability tools and engaging stakeholders.
and environmentally responsible, fostering brand
Companies can enhance transparency by
loyalty and attracting like-minded customers.

INTERNAL AUDIT TODAY STUDENTS' FORUM | 67

publishing detailed sustainability reports and have initial difficulties, the long-term benefits
investing in realtime tracking of materials. This outweigh them. These benefits include cost
open communication with consumers, investors, savings, brand reputation enhancement, and risk
and NGOs builds trust, empowers informed mitigation.
purchasing decisions, and strengthens a company’s
reputation and brand loyalty. • Proactive Risk Management: Businesses can
successfully navigate the challenges of sustainable
• Risk Management and Traceability: Sustainable sourcing by proactively identifying and
sourcing necessitates a proactive approach to risk controlling potential risks. This might involve
mitigation through assessments and traceability. supplier assessments, ensuring compliance with
Businesses should conduct thorough risk regulations, and addressing environmental or
assessments to identify social and environmental social concerns within the supply chain.
hazards in their supply chains. Following this, they
must develop action plans to reduce risks, including • Focus on Key Improvement Areas: Focusing on
diversifying suppliers, collaborating with at-risk specific areas for improvement, like minimising
providers to improve practices, or establishing waste or sourcing from certified sustainable
contingency plans. Companies can minimise producers, allows companies to make targeted
potential negative social and environmental progress. Continuously evaluating and refining
impacts by managing risks proactively and these efforts is crucial for long-term success.
ensuring supply chain traceability.
• Collaboration is Key: Sustainable sourcing is
• Focusing on Core Materials: Different materials not a solo endeavour. Businesses can leverage
have varying environmental impacts. Businesses industry collaborations, engage with NGOs, and
should prioritise sustainable sourcing for materials work transparently with suppliers to achieve
with the greatest effects. This can be achieved shared goals.
through Life-cycle Assessments, which evaluate a
product’s environmental impact from raw material • Competitive Advantage and Brand Loyalty:
extraction to disposal. By identifying high-impact By embracing sustainable practices, companies
materials, companies can focus their sustainable position themselves as leaders in ethical and
sourcing efforts effectively. Additionally, Material responsible business. This translates to increased
Substitution allows businesses to explore brand loyalty from environmentally and socially
sustainable alternatives, helping reduce their conscious consumers, ultimately leading to a
carbon footprints. competitive edge in the marketplace.

• Collaboration and Industry Standards: • Continuous Journey: Sustainable sourcing

Sustainable sourcing requires collaboration is an ongoing journey requiring dedication and
among industry participants to drive innovation innovation. As consumer awareness regarding
and promote ethical practices. By developing sustainability grows, businesses prioritising
standardised sustainable criteria, companies can continuous improvement and adaptability will be
ensure consistency and establish benchmarks for best positioned to thrive.
responsible sourcing. Sharing best practices and
engaging in collective advocacy further support Sustainable sourcing offers a win-win scenario for
sustainable initiatives. Through collaboration, businesses and the environment. By proactively
companies can accelerate the adoption of managing challenges, focusing on critical areas
sustainable sourcing methods and foster a for improvement, and fostering collaboration,
more sustainable business environment for all companies create a more sustainable future,
stakeholders. gain a competitive advantage, and build stronger
relationships with their customers. It’s a continuous
journey that demands dedication and innovation,
Conclusion but the rewards are significant for businesses that
embrace this essential responsibility.
• Long-Term Advantages Outweigh Challenges:
While implementing sustainable sourcing may

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 Astrologically – Longevity

life should be viewed as a yajna (sacred sacrifice),

where reciting mantras during these libations
ensures longevity and fulfilment.

Sidheshwar Bhalla
‘Jyotish Acharya’, Bhartiya Vidya Bhavan
[email protected]

Longevity refers to the span or length of an Chiranjeevis

individual’s life. Simply put, it is the age up to which
an individual will survive. Indian mythology
The Chiranjeevis are immortals in Hindu
is rich with stories that emphasise the theme of
mythology who are believed to have achieved
longevity and the pursuit of a meaningful life.
eternal life. Their stories often emphasise
The Chandogya Upanishad presents a profound qualities that contribute to longevity. They serve
perspective on longevity, suggesting that a person’s as reminders that a meaningful life, characterised
lifespan can extend to 116 years. It divides life into by ethical living and spiritual practice, can lead
three periods, each associated with a specific to longevity and leave an enduring impact on
libation and corresponding mantra: future generations. Each represents unique
qualities such as wisdom, strength, and
Morning Libation (First 24 Years): Deities - devtion. Their stories often depict how living
Vasus & Mantra- Gayatri Mantra, which has 24 righteously and serving a higher purpose can
syllables. It is one of the most revered mantras in lead to transcendence beyond ordinary human
Hinduism and is often associated with spiritual limitations.
awakening and enlightenment.
Hanuman: Known for his unwavering devotion
Midday Libation (Next 44 Years): Deities and immense strength, Hanuman is revered as a
– Rudras & Mantra - Trishtup metre, which symbol of loyalty and service. His immortality is
contains 44 letters. It is typically a prayer invoking attributed to his dedication to Lord Rama, which
the Rudras for strength and protection during this grants him eternal youth and life.
phase of life.
Ashwatthama: A character from the
Evening Libation (Final 48 Years): Deities – Mahabharata, Ashwatthama is said to be
Adityas & Mantra: Jagati Metre, comprising 48 immortal due to a boon he received. His life
letters. It serves as a prayer to the Adityas, seeking embodies the consequences of actions and the
blessings for longevity and well-being through quest for redemption.
the latter part of life. The Upanishad teaches that

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Vibhishana: The brother of Ravana, he is granted
longevity for his loyalty to Lord Rama during the
Ramayana. His story highlights the importance of
righteousness and moral choices in achieving a long
life.

Krupa (Krupacharya): A sage from the

Mahabharata, Krupacharya is considered immortal,
representing wisdom and knowledge as keys to
longevity.

Markandeya: Markandeya’s encounter with Lord nutrition, exercise, lifestyle, etc. Whether an
Shiva led to his immortality. His tale emphasises individual will get this care is also destined.
devotion and the power of faith in overcoming
death. Longevity or lifespan is also influenced by the
Yuga Cycle. The Yuga Cycle has four stages:
Bali: The life of Bali, the demon king who was Krita Yug (Satyug), Treta Yug, Dwapara Yug
granted immortality by Lord Vishnu after he showed and Kali Yug. We are in Dwapara Yug (the age
humility and devotion, teaches that humility can of technology), while most people may think we
lead to divine favour and longevity. are in Kali Yug.

Parashurama: The sixth avatar of Vishnu, known As per Bhavishya Puran, the average age in
for his fierce dedication to dharma (righteousness), Dwapara Yug is 1,000 years, in Treta Yug 10,000
Parashurama is believed to be immortal due to his years, in Krita Yug 100,000 years, and in Kali
commitment to justice. Yug 100 years, which will gradually go down
to 35 years. By Siddhi, one can extend the age
Dhanvantari: An incarnation of Lord Vishnu, to virtual eternity. There is also the concept of
Dhanvantari is regarded as the god of medicine Chiranjeevees, viz., those who live forever. A
and healing. He emerged during the churning of few thousand years back, there was minimal
the ocean (Samudra Manthan) with the nectar pollution and air, water, and food were pure.
of immortality (amrita), symbolising health and Individuals in those days were physically more
longevity through Ayurveda. active, and their bodies were fine-tuned to live
long.
Ashwini Kumaras: They are twin gods associated
with health, healing, and well-being. They are
often invoked for their ability to cure ailments and
promote longevity through their divine powers.

Surya: Surya, the sun god, is also linked to longevity,

as his rays are believed to have healing properties
that enhance vitality and health. Rituals like Surya
Namaskar (sun salutation) are performed to harness
these benefits.

The Astrological Perspective

Astrologically, longevity is determined based

on the count and the manner of breath destined
(Prarabdha) for an individual in the natal chart.
However, the longevity of an individual can be
influenced by the self-care one takes. This would
include healthcare, proactive medical attention,

INTERNAL AUDIT TODAY OUT OF THE BOX | 71

 • Strength of the Eighth House (signifies longevity)
and Lord of Eighth House.
• Strength of Saturn (karaka/significator for
longevity).
• Strength of the Third House (Bhavat Bhavam ~
similar House from the original House in question)
and Lord of Third House.
• Strength of the Tenth House (which signifies
Karma. It is said that the native lives as long as the
results of past Karma and Karma of this life are not
exhausted) and Lord of Tenth House.
• Strength of the Twelfth Lord (Moksha Karaka).
• Sun, Moon and Mercury as these are life giving
planets.

Notably, the natal chart should be seen as a

whole to arrive at any firm conclusion along with
respective divisional charts. The position of planets
in a particular zodiac sign, their aspects, inherent
results (malefic, benefic), the planets’ strength
Astrologically, the span of life is divided into the
and combinations they form in various houses
following categories:
in the natal/divisional chart must be analysed
and interpreted collectively. Along with the same
• Balarishta (infant mortality): death within one
planetary transit is critical and should be considered.
year. Or up to 12 years (this depends on Yoga ~
planetary combination/conjunction in an
individual birth chart).

• Yogarishta: up to the age of 20 years from the

12th year.

• Alpayu: up to the age of 33 years from the

21st year.

• Madhyayu (medium life): up to the age of 66

from the 34th year.

• Poornayu (Deerghayu): up to 100 years from

the 67th year.

• Amritayu: beyond 100 years (there are specific

About the author: Sidheshwar Bhalla is a risk
Yoga ~ planetary combinations/conjunctions in
professional with 20+ years of experience. He believes
an individual birth chart for 108 years of life).
in giving back to the professional fraternity and served
as President of The Institute of Internal Auditors,
Key factors in the birth chart that can be
India, from 2023 to 2024. To nurture his passion,
considered for an individual’s longevity
Sidheshwar qualified Jyotish Acharya from Bhartiya
assessment are as follows. These indicators are
Vidya Bhavan in 2003. His passion for astrology
general in nature, and the results may vary due
enriches his professional insights, making him a
to many other multiple aspects of an individual
respected figure in corporate and astrological circles.
natal/birth chart:
He offers unique perspectives to guide individuals
and organisations alike.
• Strength of the Lagna (refers to self) and Lagna
Lord in a native birth chart.

72 | OUT OF THE BOX INTERNAL AUDIT TODAY

 Books That Matter:
Top Picks for IA Professionals

In “Ironwill 360° Leadership: In “Leading the Digital John Taylor has been appointed
Moving Forward,” Douglas Workforce”, Jeffrey W. to revitalise the struggling
Pflug outlines twelve Brown redefines technology internal audit unit at InSports,
transformative leadership leadership, asserting that where auditors have failed to
trends for 2025 and beyond, future IT leaders must align their reviews with the
targeting visionary leaders be business leaders who audit committee’s and executive
eager for success. Key themes understand technology. The leadership’s priorities, leading
include Digital Mindfulness, book explores essential skills to subpar methodologies and
Purpose-Driven Leadership, for navigating today’s fast- strained client relationships. With
Remote Leadership Skills, paced digital workplace, a clear mandate to implement
and Inclusive Leadership. emphasising personal significant improvements within
Pflug emphasises Resilience, resilience, stress management, a year or face outsourcing, Taylor
Sustainability, and Human- and team-building strategies. must navigate a challenging
Centric approaches while It offers actionable insights transformation over the next
exploring the balance between on fostering a culture of twelve months. He aims to
AI and emotional intelligence innovation, managing enhance communication of
(EQ). He introduces Holistic change, and leveraging audit results, leverage quality
Spirituality to redefine technology to empower control and data analytics, and
ethical leadership and calls individuals and optimise address strategic, operational,
on leaders to drive positive processes. With a focus on compliance, and financial risks.
change through service and understanding company Drawing parallels to “The Goal”
philanthropy. This book is a culture and building strong and “The Phoenix Project,” the
blueprint for creating a robust relationships, this guide narrative follows Taylor and
and impactful leadership equips IT leaders—whether his team as they tackle these
legacy. new or seasoned—with the formidable challenges across
tools needed to create a multiple global locations,
competitive edge and unlock employing Kotter’s 8-Step
new opportunities in their Process for Leading Change to
organisations. foster a culture of innovation
and deliver meaningful results
for all stakeholders.

These book recommendations are strictly academic in nature and free from any commercial influence.

INTERNAL AUDIT TODAY OUT OF THE BOX | 73

74 | OUT OF THE BOX INTERNAL AUDIT TODAY
 Strategic Optimisation: A CFO’s
Guide to Pricing, Margins & Inventory

6. Accounts Receivable Levels – Number of

“Days Sales Outstanding” from customers
(DSO).
- Receivables/Average Sales (including GST) of
the last 90 days

This article explores the optimisation of

pricing strategies, gross margins, and inventory
management and control, demonstrating how
strategic oversight in these areas can drive
profitability and enhance operational efficiency.
Rajangam Ramasubramanian By mastering these control points, CFOs can
empower their organisations to achieve
Principal - CFO Centre India/Mumbai sustainable growth and confidently navigate the
[email protected] manufacturing landscape’s complexities.

In the competitive realm of manufacturing, six To determine the optimum selling price,
two factors take precedence:
essential control points act as vital indicators of
business growth and success. These include top 1. Costing based on Bill of Materials Valuation
line revenue, gross margins, net margins, finance 2. Desired Gross Margin
costs, inventory levels, and accounts receivable
levels. Each element significantly influences the Bill of Materials (BOM) Valuation
overall financial performance of an organisation. Bill of Materials (BOM): A BOM is a detailed
list of all the raw materials, components,
1. Top line – Revenue – Net of GST and as per the assemblies, and sub-assemblies required to
Revenue Recognition Policy of the company. produce a finished product. It includes quantities
a. For Sale of Goods: when it is delivered, and title and costs associated with each item.
& control to the goods are transferred.
b. For Services: Recognised over timelines and/or Valuation:
milestones as mentioned in the contract. • Direct Material Costs: This is the cost of all the
2. Gross Margins – Revenue less - Cost of Goods raw materials and components listed
sold (Variable & Direct costs) in the BOM. It includes the purchase price,
a. Cost of Goods sold means all costs incurred to shipping, and handling costs.
bring the goods to the “state” required as per • Cost Calculation: To value the BOM, you sum
design and contract or “location” stipulated in the up the costs of all components that
contract. have been finalised as per the Final Drawing and
3. Net Margins – Gross Margins less Selling & Design accepted by the customer.
Administration Costs • Variations: The BOM valuation can fluctuate
a. Selling & Administration Costs means Salaries based on changes in material costs,
& Benefits, Rent, Marketing and other supplier pricing, and manufacturing conditions.
administrative expenses.
4. Finance Costs – Interest on Bank limits, Term Gross Margin
Loans and other Secured & Unsecured Loans Gross Margin: Gross margin is a key financial
5. Inventory Levels – Number of “Days of metric that indicates how much money a
Supply” in Inventory (DOS) - Inventory/Average company retains from sales after covering the
consumption of last 90 days.
INTERNAL AUDIT TODAY OUT OF THE BOX | 75
cost of goods sold (COGS), which includes the production.
BOM costs. • Value-Based Pricing: Set the price based on
the perceived value to the
Factors to be considered: customer rather than just the cost.
• Competitive Pricing: Set your price in line
• Profitability: A higher gross margin indicates that with or slightly below competitors
a company retains more from sales to attract customers.
achieved, which can be used to cover operating 4. Profit Margin:
expenses and generate profits. • Decide on the desired profit margin and
• Pricing Strategy: Understanding BOM valuation ensure that the final price covers costs
helps set prices that cover costs and and achieves this margin.
achieve desired profit margins. 5. Regulatory Considerations:
• Cost Management: Monitoring BOM costs helps • Ensure your pricing complies with any
identify areas for cost reduction or relevant regulations or industry
efficiency improvements. standards.
In summary, the BOM valuation provides insight 6. Discounts and Promotions:
into the cost of manufacturing a product, while • Factor in any discounts or promotional
gross margin helps assess the profitability of sales. pricing strategies that you plan to offer.
Both metrics are essential for financial planning and
business strategy. As the saying goes, “Price is a fiction, and
Cost is a fact,” the CFO should try to bring in
cost reduction for better margins, and for that,
the best bet is inventory management and
control.

Pricing
Product pricing involves several key considerations
to ensure you cover costs, remain competitive, and Inventory Management and
meet your financial goals. Here’s a basic framework Control
to help you determine the price of a product:
Having desired levels of all types of Inventories
1. Cost Analysis: (Raw material & Components, Work in Progress
• Direct Costs: Include all expenses directly tied to and Finished Goods) not only ensures delivery
the production of the product “On time in Full (OTIF)” to customers but
(materials, labour, etc.). also brings in better cash flow management.
• Indirect Costs: These are overhead costs not
directly tied to production but The OTIF should happen even to the internal
necessary for operations (utilities, rent and customer, the production floor. The production
administrative salaries). team entirely depends on the coordinated effort
2. Market Research: of internal suppliers such as the warehouse,
• Competitor Pricing: Analyse how similar procurement, and finance teams to achieve
products are priced in the market. OTIF for final customers. Even a delay in
• Target Customers: Price, the target customers are delivering a few components needed for the
willing to pay and what they perceive as fair value. final product assembly can create a big “not
3. Pricing Strategies: immediately” saleable inventory, jeopardising
• Cost-Plus Pricing: Add a markup to the cost of cash flow. Delayed supply – delayed assembly –

76 | OUT OF THE BOX INTERNAL AUDIT TODAY

 delayed dispatch – delayed invoicing, and delayed Post-COVID-19, developed countries are seeking
payment from unsatisfied customers. There to diversify their supply chains across multiple
can also be a penalty in the form of “Liquidated countries. India stands out by offering several
Damages” by the customer. benefits, such as a large and youthful workforce,
lower labour costs, and a growing emphasis on
The operations team has to continuously monitor improving its infrastructure, and ease of doing
and modify the number of Days of Supply (DOS) business. Additionally, the Indian government has
inventory levels, maintain optimum inventory for introduced various incentives for manufacturers.
smooth operations at one end, and avoid blockage Indian manufacturers should capitalize on this
of cash in excess and obsolete inventory at the opportunity.
other. This OTIF metric is crucial for maintaining
inventory level, ensuring customer satisfaction and
optimising supply chain performance. About the author: Rajangam Ramasubramanian
is an FCA with over 30 years of experience in
“The Goal”, written by Eliyahu Goldratt, a business family owned and publicly listed manufacturing
novel on the Theory of Constraints, maps the companies and multinational corporations. He
concept of OTIF and emphasises the importance has a strong passion for product costing to aid
of efficiency and improvement in supply chain price decision-making and excels in implementing
management. Management Information Systems (MIS) and
Enterprise Resource Planning (ERP). Rajangam
In a nutshell, proper inventory management brings has a proven track record of driving profitable
the company and the team together to achieve growth through effective financial management,
the objectives set by the management and brings stakeholder engagement, and team development
bonding of the team members. across diverse industries, including plastics,
chemicals, machinery, laboratory equipment,
The CFO can play a significant role by providing infrastructure support, and real estate. In addition
valuable and timely data analysis, helping to make to his professional expertise, he enjoys learning
effective decisions to optimise cash flow, thereby multiple Indian languages and sharing his
improving both top-line performance and margins. knowledge with others.

IIA India Enhances Internal Audit Effectiveness

for State Bank of India

IIA India recently organised a transformative training session for the State Bank of India (SBI) on “Root Cause Analysis for
Enhancing Internal Audit Effectiveness.” The session, led by Mukundan K V, engaged 51 senior professionals in strategies to
strengthen audit processes through comprehensive root cause analysis. Special thanks were extended to Shri Shamlal Garg,
CGM, Shri Naveen Kumar Jha, CGM, and Shri Srinivas Gali, DGM, for their valuable presence during the inaugural session.
Additionally, gratitude was expressed to Shri Kishore Kumar Poludasu, Deputy Managing Director, for his leadership in
supporting SBI’s membership and training initiatives aimed at capacity building within the Internal Audit Department. This
training was part of IIA Global’s renowned Global Training Module, emphasising high-quality education tailored to the needs
of internal auditors.

INTERNAL AUDIT TODAY OUT OF THE BOX | 77

78 INTERNAL AUDIT TODAY
INTERNAL AUDIT TODAY 79
 Integrity Meets Innovation at the IIA India Delhi
Branch Conference on AI

On November 23, 2024, the IIA India Delhi Branch hosted a transformative conference titled "Integrity and
Insight: Impact of AI on Forensics & Governance" at The Suryaa, New Delhi. The landmark event attracted over
100 participants, including a diverse group of industry leaders, auditors, and forensic professionals passionate about
exploring the evolving role of artificial intelligence (AI) in their fields.

After a heartwarming welcome by Gaurav Bhatia, Treasurer of IIA India Delhi Branch, Yukti Arora, Vice President
of the Delhi Branch, addressed participants. Delhi BOG member Priya Gupta elegantly played her role as the master
of this ceremony.

The event featured a galaxy of speakers, including Anjani Kumar Sharma, Co-Founder & Director of SAGA, who
delivered an enlightening keynote address that captivated the audience. His scintillating speech set the reflective
tone for discussions on the intersection of AI and human intelligence, emphasising that while AI offers remarkable
capabilities, human oversight remains crucial to ensure ethical standards and accountability. In his invigorating
address, Dinesh Bahl, managing partner at SNB, touched participants to the core, bringing them anecdotes and
real-life experiences.

A panel discussion titled "From Boardrooms to Algorithms: The Role of AI in Governance Strategy" featured
insights from industry leaders including Sanjeev Singhal (Independent Director), Niraj Kumar (SVP Global Head
IA, Forensics & Risk, Oyo Hotels), Pravin Kumar (National Head - Assurance, ASA), and Ritu Gupta (SVP, MAS,
Times of India). The panellists addressed the opportunities and challenges AI presents in modern organisational
frameworks.

Nikhel Kochhar, Partner JHS & Associates LLP and former Chief Advisor at IIA India, moderated a key technical
session titled "AI and Forensics: A Game Changer for Modern Auditors and Investigators," featuring an esteemed
panel including Suparna Bhattacharyya (CFO, Schneider Electric Infra. Ltd.), Rahul Gambhir (CAE Brookfield
Properties), Alok Gupta (Cyber-Forensic Leader), and Rahul Kaushik (CAE O2 Power). They explored how
technology is transforming investigative approaches and auditor efficiency.

Sidheswar Bhalla, the immediate past President of IIA India, appreciated the thought-provoking deliberations and
shared insights on "Astroficial Intelligence" during his engaging session titled "Astroficial Intelligence – Astrology
vs. Artificial Intelligence." He explored the fascinating parallels between ancient wisdom and modern technology,
illustrating how both can offer valuable perspectives on decision-making.

The conference's central theme highlighted that human intelligence remains vital, with artificial intelligence as a
powerful tool to enhance our capabilities. Sessions consistently focused on integrating humane perspectives and
examining the diverse impacts of AI on various aspects of life. An interesting survey was conducted by Yukti Arora,
Mukesh Gupta and Mohit Gupta.

Among those who graced the occasion were CA Charanjot Singh Nanda (VP, ICAI), Shalini Gupta (VC, NIRC of
ICAI) and leaders from IIA India—Sana Baqai, President, IIA Delhi Branch and past President IIA Delhi Branch
Bharat Garg who interacted with the participants during the networking sessions. Mukesh Gupta, Secretary of IIA
India Delhi Branch, delivered the vote of thanks. The event concluded with heartfelt thanks to sponsors Quantlab
Wealth, an Algo Trading company whose support enabled this vital dialogue on AI and innovation in internal
auditing.

80 INTERNAL AUDIT TODAY

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