PROCESS PERFORMANCE SELF ASSESSEMENT
Risk Assessment was once an audit jargon. Now risk assessment has become a critical part of managerial responsibility. Managements have a legal obligation to certify on the adequacy of risk management process. All the pressures demand for a systematic approach towards risk assessment.
Astral’s PPSA is a dynamic self assessment approach that can facilitate organizations in appraising and managing risks more effectively. This technique leverages organizational knowledge to improve business performance at the entity or process level. It can identify weak control areas, strengthen controls, and increase the efficiency and effectiveness of the internal audit function.
“The main objective of PPSA is to ensure that all the members of an organization are aware of the objectives of the organization and also of the risks involved in achieving the objectives.”
Paradigm shift in the Internal Audit Outlook
| Responsibilities |
Traditional Approach |
CSA Approach |
| Setting business objectives |
Management |
Management |
| Assessing risks |
Management |
Management |
| Adequacy of internal controls |
Management |
Management |
| Evaluating risks and controls |
Auditors |
Work teams |
| Reporting |
Auditors |
Work teams |
| Validate evaluation of risks and controls |
Auditors |
Auditors |
| Objectives used |
Audit’s |
Management’s |
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| PROCESS PERFORMANCE SELF ASSESSMENT |
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| FEATURES |
- Renders Excellent Corporate Governance through Self Assessment, the adherence of which will be a pleasant experience to everyone in the organization
- Self-assessment is the process through which Management and Process Owners along with the Internal Auditors assess the extent to which their current practices are sufficient and appropriate to achieve their strategic objectives and there is a continuous Risk Monitoring mechanism.
- PPSA will help organizations create a risk database, strategize risk assessment methodology, streamline documentation procedures and evaluate residual risk.
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Internal Audit