Managing risk through partnership: A not-for-profit's journey with outsourced internal audit

Client background

This organization is a not-for-profit membership organization dedicated to serving its members through comprehensive advocacy and lobbying services. Established to support and advance the interests of its industry, the organization provides members with industry-specific data and information, helping them stay informed and competitive. In addition to hosting conferences and conventions that foster networking and collaboration, the organization also offers a variety of training opportunities to ensure members have access to the latest knowledge and skills to excel in their field.

The business challenge

During a competitive bidding process, the organization, who is dedicated to transparency and fiscal responsibility, faced the critical challenge of selecting a new internal audit vendor. The organization sought a collaborative risk advisor and internal audit ally that not only possessed a deep understanding of the unique compliance and regulatory requirements of the not-for-profit sector but also demonstrated a proven track record of enhancing operational efficiency and governance.

Strategy and solution

As a trusted guide to this organization, Baker Tilly serves as the organization’s outsourced internal audit function and delivers value-added services that significantly enhance the organization's operational effectiveness. We conduct a comprehensive annual risk assessment, which lays the foundation for developing a targeted, risk-based internal audit plan. This strategic approach enables us to identify and prioritize key risk areas and opportunities, resulting in a diverse internal audit plan that includes multiple audits and advisory engagements. Through our proactive auditing process, the organization is prepared to actively monitor and mitigate risks across the entire enterprise, strengthen internal controls and improve overall governance.

Specifically, Baker Tilly has supported the organization by proactively identifying and evaluating emerging risks, including the rapidly evolving field of artificial intelligence (AI). For instance, our team conducted a comprehensive AI advisory review to assess the current state of AI governance within the organization. This involved evaluating existing AI processes, identifying gaps and providing actionable insights. We assisted the organization in developing a robust AI policy to ensure smart, ethical and effective use of AI technologies. As the AI landscape continues to evolve, we remain committed to guiding the organization, ensuring it stays ahead of emerging trends and maintains a strong governance framework.

Results achieved

Baker Tilly has consistently delivered practical and actionable recommendations aligned with industry leading practices, reinforcing the organization's commitment to transparency and efficiency. Our deep industry experience and knowledge of best practices have enabled us to provide the organization with a comprehensive view of its operations compared to its not-for-profit industry peers. This enhanced perspective has empowered the organization to adopt innovative strategies, strengthening its competitive position and ensuring robust risk management and operational excellence.

To learn more about how Baker Tilly can help your organization, contact our team.