A gap analysis is a method of assessing the differences in performance between a business’ internal controls to determine whether business requirements are being met and, if not, what steps should be taken to ensure they are met successfully. Moreover, it is a determination of the degree of conformance of your organization to the requirements of an internal controls standard. A gap analysis is mainly a document review or a “show me the evidence” type activity, evidence which usually will come in the form of a record or document. During a gap analysis, there is some auditing accomplished, through key stakeholders providing the evidence they may have – or not – for each of the requirements set forth in the relevant internal controls standard. In this episode, I am joined by AMI’s Eric Feldman to explore this topic.

3 Key Takeaways

  1. Now is the time for a gap analysis.
  2. Add a Fraud Risk Assessment to your gap analysis.
  3. Culture is a foundational internal control.

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