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Audit and Risk Assurance

Audit and Risk Assurance

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Audit and Risk Assurance

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  1. Audit and Risk Assurance AUDITING HARD TO REACH AREAS Equal Pay – A Case Study Sue Lewry-Jones Internal Audit and Inspection Manager

  2. Auditing Hard to Reach Areas

  3. Auditing Hard to Reach Areas Climbing The World’s Highest Peak • 1808 - British began a survey of the world’s highest mountains • 1852 - Mount Everest was identified as the world’s highest peak • 1920s Expeditions – George Mallory • 1953 – First Successful Ascent to the summit • Numerous records

  4. Auditing Hard to Reach Areas What does the Everest story tell us? • It helps if we have a map • It helps if others have done it before

  5. Auditing Hard to Reach Areas The Audit Map • Objectives • Risks • Controls Concern – Not our typical area of expertise

  6. Auditing Hard to Reach Areas How to get started: Research!! External Sources • Internet • Especially Google

  7. Auditing Hard to Reach Areas – Equal Pay

  8. Auditing Hard to Reach Areas – Equal Pay External Sources • Internet • Improvement and Development Agency • Unison • Personnel press • Equal Pay Policies • IIA

  9. Auditing Hard to Reach Areas – Equal Pay What did my External research show me? The Equal Pay Act 1970 gives men and women the right to equal pay for equal work unless there is a genuine and material reason for the inequality that is not related to sex

  10. Equal Pay – Relevant Case Law Much case law hinges around Comparators 1988 – Pickstone v Freemans plc 1993 – Enderby v Frenchay 2005 - Degnan v Redcar & Cleveland BC Successful claims may result in back-pay of up to 6 years Auditing Hard to Reach Areas

  11. Auditing Hard to Reach Areas – Equal Pay The Equal Pay Act includes: • Part-timers • Fixed term workers • Temporary workers • Casual or bank workers It covers all aspects of Pay including: • Overtime rates and allowances • Performance related pay and benefits

  12. Auditing Hard to Reach Areas More research! Internal Sources • Intranet • Reward strategy • Pay policy • Grading structure • Risk registers • Financial Statements • Financial Provision

  13. Auditing Hard to Reach Areas Identify who you need to speak to : • HR • Legal • 3rd Parties • Unions??

  14. Auditing Hard to Reach Areas – Equal Pay Key Findings There are a number of key controls in place which demonstrate a commitment to Equal Pay: • A clear grade structure with published salary ranges • A formal job evaluation methodology to ensure jobs are graded according to skills required • Targetted pay harmonisation exercises

  15. Auditing Hard to Reach Areas – Equal Pay However… • No specific written policy on Equal Pay • No central database of job profiles linked to positions to allow comparisons across the organisation • Unclear how School support staff are included in the overall strategy for implementing equal pay • The same job title being used across a wide range of grades • A range of allowances continue to be paid despite “clean pay” being the aim

  16. Auditing Hard to Reach Areas – Equal Pay Key recommendations: • A stated policy on Equal Pay which is clearly communicated • A central database of job profiles linked to positions • Regular monitoring of grade and salary levels by gender • Rationalisation of job titles • Harmonisation of allowances

  17. Auditing Hard to Reach Areas – Equal Pay In conclusion when auditing “Hard to reach areas”: Key auditing principles still apply ie: • Objectives Risks Controls • Do your research – especially look at what others are doing • Identify all key parties • Interrogate your systems to independently verify what you are being told • Be aware of issues of confidentiality or sensitivity of the area you are looking at