Upon completion of this course, participants will be able to:
• Understanding Root Cause Analysis (RCA)
• Introduction to the various tools and methodologies that can be utilized for RCA
• Understanding how RCA can be applied within audits
• Understanding when to utilize RCA in an Internal Audit
• Understanding the common challenges when using RCA
• Learning how to apply RCA in practice
Understanding Risk Cause Analysis (RCA)
• What is it?
• A very brief history and background of RCA
• Why should it be done?
RCA in Internal Audit—Why?
• Business responsibility or Internal Audit?
• Adding value
• When should we conduct an RCA?
• At what point in an audit should the RCA be conducted?
• When to use RCA outside of an audit
Standards and Best Practices
• Overview of current IIA guidance
• IIA Practice Advisory 2320-2
RCA Methodologies and Techniques—Most Common in Audit
• Pareto Analysis
• Ishikawa Method—Fishbone diagrams
• Kipling Methodology—5W1H
• 5 Whys
• 5 Cs
The RCA Process
• Defining the issue
• Diagnosing the issue using one of the methodologies
• Identifying potential alternate solutions/recommendations
• Determining if an interim or permanent solution is viable
• Ensuring appropriate controls for recommended solution
• Lessons learned
Adding Value – Linking Root Cause to Findings and Objectives
• Linking the finding to its root cause
• Linking the finding and root cause to the audit and business objectives
• Understanding the control failure root causes
Common Challenges and Obstacles
• Environmental obstacles
• Common mistakes
• Biases that impede RCA
• Drawing the wrong conclusion
• Resolutions that don’t resolve the issue
• Communication—interviewing, Q&A, follow-up
Communicating Root Causes
• Solutions—MoSCoW Analysis