HUBCO Internal Audit Transformation

Client Name

Hub Power Company

Faculty Advisor

Abdul Rahim Surya

SBS Thought Leadership Areas

Entrepreneurship and Innovation

SBS Thought Leadership Area Justification

In this project, we focused on transforming and modernizing the internal audit function by updating HUBCO’s audit manual to reflect the latest global standards. This initiative represents a form of organizational innovation, as it introduced meaningful change in how the audit function operates.

We incorporated new frameworks, such as the IIA Standards and the Three Lines Model, which reflect process innovation by enhancing the structure and methodology of internal audit activities.

We also recommended the adoption of new technologies and tools, contributing to digital innovation within the function.

Finally, through these efforts, we aimed to reposition internal audit as a value-adding partner to the organization, aligning it more closely with strategic innovation goals.

Aligned SDGs

GOAL 9: Industry, Innovation and Infrastructure

Aligned SDGs Justification

Our project is a direct example of driving innovation within industrial processes. We introduced modern frameworks (such as the IIA Standards and Three Lines Model) and advocated for the adoption of advanced audit management tools (e.g., Pentana, CAATs). These changes strengthen the internal infrastructure that supports HUBCO’s operations and risk management. By embedding innovation into the company’s internal audit function, we have laid the groundwork for smarter, more resilient industrial processes that are essential for a company operating in Pakistan’s critical energy sector.

NDA

Yes

Abstract

This project focused on transforming the internal audit function of HUBCO, a leading energy company, by modernizing its Internal Audit Manual in line with the latest global standards and best practices. Our objective was to reposition internal audit as a strategic partner that supports governance, risk management, and value creation across the organization.

We began by conducting a detailed review of HUBCO’s existing audit framework against the global internal audit standards laid by the IIA and benchmarking it against industry leaders such as K-Electric and Engro Energy.

The project delivered a redesigned manual that integrates risk-based auditing, improved audit planning, enhanced reporting standards, and clearer audit opinion categories. We also recommended the gradual adoption of technology, including Computer-Assisted Audit Techniques (CAATs) and audit management software, to enable smarter, data-driven auditing over time.

Ultimately, this transformation strengthens HUBCO’s internal controls, supports ethical business conduct, and enhances resilience in a dynamic regulatory environment, contributing to the company’s long-term sustainability.

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

Notes

Please do not make the updated manual or the previous manual open to public, it has a non-disclosure agreement.

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