5th Annual National Congress On Health Care Compliance Internal Audits Role in Compliance (And Vice Versa)
5th Annual National Congress On Health Care Compliance Internal Audits Role in Compliance (And Vice Versa)
5th Annual National Congress On Health Care Compliance Internal Audits Role in Compliance (And Vice Versa)
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Internal Audits Role in Compliance (and Vice Versa) February 7, 2002
Agenda
• Internal Audit’s Role Defined
• How Internal Audit Does Its Work
• Internal Audit’s Role in Compliance
• How Internal Audit and Compliance Differ
• Defining Roles at Your Organization
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Internal Audits Role in Compliance (and Vice Versa) February 7, 2002
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Internal Audits Role in Compliance (and Vice Versa) February 7, 2002
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Internal Audits Role in Compliance (and Vice Versa) February 7, 2002
Agenda
• Internal Audit’s Role Defined
• How Internal Audit Does Its Work
• Internal Audit’s Role in Compliance
• How Internal Audit and Compliance Differ
• Defining Roles at Your Organization
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Internal Audits Role in Compliance (and Vice Versa) February 7, 2002
Ownership Risks – The risks associated with acquiring, maintaining, and disposing of assets (all except human assets).
Process Risks – The risks associated with putting assets to work to achieve objectives.
Behavioral Risks – The risks associated with acquiring, maintaining, and disposing of human assets.
Productivity Loss
Workplace Environment Opportunity Costs Turnover Ø Poor management practices
Ø Gender/racial harassment Ø Hiring the wrong Ø Inadequate staff Ø Poor worker commitment
Ø Excessive pressure to meet people or skills Ø Lack of key staff Ø Under-utilizing human assets
objectives Ø Poor compensation Ø Lack of trained staff Ø Poor leadership
Ø Employee theft and system Ø Favoritism
sabotage
Ø Losing the wrong Ø Lack of work structure/discipline
Ø Workplace injuries Ø Inconsistent management decisions
Ø Employee lawsuits people or skills Ø Personal/work goal conflicts
Ø Workplace violence/safety Ø Lack of training
Ø Performance-goal misalignment
12 Copyright © 2001 by The Institute of Internal Auditors
Internal Audits Role in Compliance (and Vice Versa) February 7, 2002
Focus: Enabling, drive into strategic gaps
Audit Approach Focus: Process & control efficiency
Impact: Influence strategy & deployment;
Strategic Partnering
Process Efficiency
Impact: Systematic process & control change behavior; leverage technology;
improvement, cost reduction strategy/action congruence
Collaborative
Report: Analysis, facts & Report: Best practices, analysis of
& Enabling circumstances; recommended actions strategy/action incongruity, business case
Skills: General, medium technical, for change, off-report assistance
project management & partnering Skills: Integrated business & deep
Effort: Medium technology skills plus Humana
experience, credibility w/ line management
Process Effectiveness
Impact: Enhanced controls Impact: Change, influence system
Monitor
Value
13 Proposition Risk Management Strategy Achievement
Internal Audits Role in Compliance (and Vice Versa) February 7, 2002
Operating Efficiencies
Performance • Continuous Improvements
• Standardize Processes
• People, Paper, Processes
OPPORTUNITIES
Copyright © 2000 PricewaterhouseCoopers, LLP
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Internal Audits Role in Compliance (and Vice Versa) February 7, 2002
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Internal Audits Role in Compliance (and Vice Versa) February 7, 2002
Agenda
• Internal Audit’s Role Defined
• How Internal Audit Does Its Work
• Internal Audit’s Role in Compliance
• How Internal Audit and Compliance Differ
• Defining Roles at Your Organization
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Internal Audits Role in Compliance (and Vice Versa) February 7, 2002
At a minimum, the internal audit activity should periodically assess the state of the
ethical climate of the organization and the effectiveness of its strategies, tactics,
communications, and other processes in achieving the desired level of legal and
ethical compliance. Internal auditors should evaluate the effectiveness of the
following features of an enhanced, highly effective ethical culture.
– Formal code of conduct.
– Frequent communication of expected ethical attitudes and behavior by the influential leaders of the organization.
– Explicit strategies to support and enhance the ethical culture with regular programs.
– Several, easily accessible ways for people to confidentially report alleged violations of ethics code.
– Regular declarations by employees, vendors that they are aware of requirements for ethical behavior.
– Clear delegation of responsibilities for investigation and resolution of case findings.
– Easy access to learning opportunities regarding ethics.
– Regular reviews of formal and informal processes within the organization.
– Regular reference and background checks.
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Internal Audits Role in Compliance (and Vice Versa) February 7, 2002
Agenda
• Internal Audit’s Role Defined
• How Internal Audit Does Its Work
• Internal Audit’s Role in Compliance
• How Internal Audit and Compliance Differ
• Defining Roles at Your Organization
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Internal Audits Role in Compliance (and Vice Versa) February 7, 2002
Agenda
• Internal Audit’s Role Defined
• How Internal Audit Does Its Work
• Internal Audit’s Role in Compliance
• How Internal Audit and Compliance Differ
• Defining Roles at Your Organization
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Internal Audits Role in Compliance (and Vice Versa) February 7, 2002
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Internal Audits Role in Compliance (and Vice Versa) February 7, 2002