California Association of State Auditors - Auditing Human Capital and Responding to Emerging Risks

Events Calendar

Auditing Human Capital and Responding to Emerging Risks

From Monday, November 06, 2023 - 08:30am
To Tuesday, November 07, 2023 - 12:30pm

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Session 1 – Auditing Human Capital Practices

The attraction and retention of talent for organizations has evolved to become one the top risks facing

private and public sector organizations. Internal auditors are being asked by organizational leaders,

including the Audit Committee, to independently appraise the strength of people practices in place

achieve strategic objectives and meet future needs. The impacts of the pandemic, work from home,

and workforce demographics are accelerating human capital risk in organizations.

This session is targeted to all audit staff including junior and intermediate audit staff who are seeking to

develop a baseline knowledge of people related risks relevant to their organization. It will begin by

highlighting the business imperative for evaluating human capital risks in public sector agencies and

organizations. Information on the structure of HR programs including the pervasive impact of

corporate culture will be presented and discussed.

Various approaches and methodologies to perform a high-value human resources or people services

audit will be presented and discussed which will include practical strategies to recommend cost-

effective controls to address key risks. The session will include interactive exercises to stimulate learning

to develop strategies and tactics for analyzing HR policies, procedures, and programs. The primary

objective is to help audit practitioners and leaders build their confidence to have proactive discussions

with Management on human capital challenges and Internal Audit’s ability to deliver value in this

domain.

Key learning objectives include the following:

 Fundamental understanding of a generic HR framework

 Knowledge of the risks and challenges for organizations to manage people risks

 Deploy audit approaches and techniques to evaluate HR systems and practices

 Understanding sensitivities and organizational resistance to HR reviews

Session 2 – Responding to Complex Issues and Emerging Risks

The imperative for internal auditors to pivot and change course in response to organizational

challenges and emerging risks has never been greater in today’s business environment. As described

by many prominent leaders, internal auditors need to audit at the “speed of risk”. The collective

impacts of corporate culture, increased stakeholder expectations, growing regulatory requirements, and

unpredictable management behavior (and bias) can help (or hinder) Internal Audit’s response to

complex challenges and emerging risks. Internal audit is well positioned to determine whether

organizations are identifying, evaluating, and responding to emerging risks. We can leverage our

objectivity, business acumen, and enterprise-wide focus to be a value-added partner.

To begin with, this session will provide insights on how to deal with unique challenges impacting the

internal audit function. These may include issues such as fraud or corruption investigations, difficult

personalities, misaligned leadership, unrealistic corporate objectives, staffing challenges, and ethical

breaches. The session will provide tips and tricks to deploy (and avoid) when dealing with these tone-

from-the-top engagements.

The second part of the session will provide an overview of emerging risks facing public and private

sector organizations today based on industry research and contributions from subject matter experts.

This content should help internal auditors develop forward-looking insight and perspectives as they

develop their annual audit plans. Key questions will be provided to gauge awareness of emerging risks

and organizational readiness. There will be interactive exercises designed to explore practical and

organized approaches, including analytics, to highlight the impact of emerging risks on organizational

priorities.

By the end of this session, attendees should develop the ability to:

 Identify and prioritize complex issues for internal audit;

 Develop insights on how to manage challenging situations;

 Understand and articulate the impact of emerging risk issues on their organization; and

 Explore creative strategies including methods, tools, and metrics to address emerging risks

Class will be held Monday and Tuesday, 8:30am-12:30pm

Location Online via Zoom

Instructor: Robert Kulings