Internal audit - a tool for IFRS 17
The new IFRS 17 standard involves a certain number of adjustments in companies, in particular in terms of modeling and implementation of controls on the 'accuracy and completeness of the data. A very interesting analysis by Alex Bertolotti (Partner PwC) and Klaas van Wyk de Vries (Expert Audit) reveals the value of using its internal audit function to prepare for the implementation of IFRS 17 (Article IFRS 17: The impact on internal audit).
According to Alex Bertolotti and Klaas van Wyk de Vries, the internal audit function could really bring comfort to stakeholders.
Compliance with the standard: Internal audit can enable planning and quickly provide ongoing assurance that the necessary actions have been taken with all relevant stakeholders. In concrete terms, internal audits can regularly check that the necessary internal controls are in place and that stakeholders are correctly informed of what will be required of them. This avoids having to rework in the future on certain themes.
Certify the quality of financial reporting: once again, internal audit can validate the choice and quality of internal control methods for financial reporting. Indeed, as Alex Bertolotti explains, IFRS 17 has a direct impact on financial reporting sent to stakeholders. Thus internal audit can be used to provide assurance of the relevance of these. The two benefits for the audit function and organizations are being able to confirm “(1) the adequacy and effectiveness of controls for the accuracy and completeness of data; and (2) appropriate governance over models.
"Finally, using the internal audit is an effective tool to enable the smooth running of the program in terms of allocation of adequate resources but also in terms of training to ensure proper implementation. Internal audit is a very versatile function that can intervene at different levels of the program.
Discover the article, in English, IFRS 17: The impact on internal audit.