Page 4 of 4: Securing Support from Internal Audit for Change Initiatives
Page 4 of 4
Securing Support from Internal Audit for Change Initiatives
A key objective of the Internal Audit function is to provide comprehensive assurance to the Board and senior management regarding the efficient and effective management of the company’s material risk areas through a risk-based methodology. Gaining Internal Audit support is crucial for implementing necessary changes within the indirect tax function. This collaboration can enhance the department’s credibility and ensure alignment with broader business priorities.
Couple of questions for internal audit to get started:
- Is the indirect tax strategy defined and aligned with companies’ business objectives?
- Are material indirect tax risk areas defined? (e.g. indirect tax risk matrix)
- Are roles and responsibilities for managing these risks explicitly assigned?
- Are assessed risks documented in a risk register, monitored and communicated to senior management?
- Does the risk register contain the following labels: number, name of the risk, risk definition, cause for the risk to occur, risk category and the risk owner?
- Are the internal controls that mitigate these risks explicitly documented?
- Are the responsibilities for executing and monitoring the internal controls assigned?
- Are there regular meetings to discuss the status of risks and internal controls and define actions?
- Has a strategy been defined for managing the relationship with tax authorities? Have the responsibilities been assigned for the different geographic regions?