OUTSPOKEN
There’s an opportunity for us all
Tim Brooks, Head of Internal Audit
The theme of this Exchange edition is improvement. As the termed “Value preservation”). Whilst these responsibilities a learning and continuously improving business exactly as the
new Head of Internal Audit, it is my role to help Management and focus remain a core part of Internal Audit activities, Plan, Do, Check, Act cycle shown in Figure 2.
identify improvements to the Scott Wilson management many organisations are using Internal Audit skills to critique
control systems both from the perspective of compliance and improve business governance and performance. This model can be applied to all audit activities given that
and performance. Hence, the terms of reference for Internal Audit at audit is checking management controls against stated
Scott Wilson include value creation as one of its objectives. Where possible, auditors make recommendations
“Scott Wilson continually
principal roles. for improvements to assist management in finding solutions
to the issues identified. However, it should be emphasised
improves the effectiveness
Turning now to our assurance activities, those of you familiar that in order to maintain an appropriate level of
with our quality management system will know that we independence, auditors do not approve or implement action
of its management systems” maintain certification for our compliance with the International plans. It is for Management to determine the appropriate
Standard on Quality Management Systems (ISO 9001:2000). action to take.
Internal Audit reports functionally to the Chairman of the Audit The standard advocates “the adoption of a process approach
Committee. The Audit Committee is keen to ensure that when developing, implementing and improving the
Figure 2: Continuous Improvement
Internal Audit focuses on opportunities for continuous effectiveness of a quality management system, to enhance
improvements to support: customer satisfaction by meeting customer requirements.”
• effective, efficient and economic commercial operations, Key features of the standard concern measurement, analysis
• strong corporate governance, and and improvement. Internal audits are an integral part of these
• conformance with our management system. activities and are performed to determine whether we
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conform to the international standard and to the requirements
These audit activities can be illustrated by the enterprise specified in the Scott Wilson management system.
governance framework (see Figure1). Enterprise governance
constitutes the entire accountability framework of an
“I look forward to working with
organisation. In general terms, the conformance element
takes an historic view while the performance view is
you to identify opportunities for
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forward-looking.
improvements to the way we
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The conformance dimension sits on the left-hand side of the
diagram which seems appropriate given that this is the side
do business.”




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of the brain that governs logical, orderly and analytical
functions where as the right-hand side of the brain tends to Scott Wilson has embarked on an extensive process of
be intuitive, holistic and creative. improving its management systems and key to these Internal Audit is just one of many drivers of improvements
changes are the development of our 'The way we do within Scott Wilson operations. I look forward to working with
Internal Audit has been historically associated with corporate business' policies and the ERP project featured elsewhere in you to identify opportunities for improvements to the way we
governance and assurance activities (what may also be this Exchange. This major overhaul is part of our drive to be do business.
Figure 1: The enterprise governance framework
ENTERPRISE GOVERNANCE
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Corporate Governance i.e. Conformance Business Governance i.e. Performance
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Accountability Assurance Value Creation Resource Utilisation
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