Anyone who can help, Our Board recently challenged our classification of what is a "critical issue." They believe their roll is strictly related to dealing with "material impacts of a financial or legal nature." To me their approach is too related to external audit. I disagree with their definition. When a significant internal control is missing it can also be classified as "Critical" without quantifying a financial or legal impact.
For example, if metrics governing employee performance in a critical billing follow-up function give employees incentives to defer or delay issue resolution, result in perpetual errors, inefficiencies, and an unquantifyed financial impact, we find that to be a "critical issue." However under our current process our Board defines that issue as a medium risk and a need for process improvement. The only difference I see is that we have not taken the time to quantify specific financial losses due to the scope of the review. Many things lead to financial and legal exposure: * Weak governance * Missing controls * Poor training * inefficient processes * understaffed areas If anyone can share how they define a "critical issue" that should be addressed by the Board, I would be very interested in your definition. Thanks for any help. Dan Clayton 303 436-8821 Internal Auditor, CPA Office of Integrity DHHA *=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=* To unsubscribe from this list send an email to [EMAIL PROTECTED] and include the message unsubscribe auditprograms-l and your name.
