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Annual Conference
The Internal Auditor – value added to both
the Audit Committee and Management
7 November 2012
Value added by IA
Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management
While ‘added value’ achieved through sales, support and production processes is more tangible ad relatively easier to establish,
measuring ‘added value’ from internal audit is more intangible and more difficult to quantify.
Conference Synopsis
Value
Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management
Business raison d'être
Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management
Risk ∝ Cap rate
Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management
Value ∝ 1/Cap rate
Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management
Governance
Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management
Board Committees
• Audit Committee• Risk and Compliance Committee
(proportionality)• Governance Committee• Remuneration Committee
Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management
Role of the AC
...to add comfort to the Board in matters relating to financial reporting, regulatory compliance,
internal controls and whistle-blowing
Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management
...Role of the AC
(a) Monitor the financial reporting process; (b) Monitor the effectiveness of the company's internal
control, internal audit where applicable, and risk management systems;
(c) Monitor the statutory audit of the annual and consolidated accounts;
(d) Review and monitor the independence of the statutory auditor or audit firm, and in particular the provision of additional services to the audited entity
Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management
Role of management
Management is the first line of defence against risks and is responsible for designing and
implementing control procedures that mitigate unwanted risks...
Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management
Role of the Risk Committee
To assist the Board in its oversight of the company’s risks as necessary, the company’s
risk management, the company’s risk tolerance, the company’s capital, liquidity and
funding.
Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management
The IA in Risk Management (IIA Research Foundation White Paper Mar11)
Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management
The IA in Risk Management
Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management
The IA in Risk Management
Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management
The IA in Risk Management
Giving assurance on risk management processesEvaluating risk management Reviewing management of key risks
Setting risk appetite Imposing risk management processes Taking decisions on risk responses Accountability for risk management
Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management
Challenges of the IA
Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management
The IA in Risk Management
Does?Could?
Should?The IA function add value through educating and
appraising the risk management function, towards a lower risk, a lower cap rate and
higher company value?
Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management
Great Audience!
Many thanks for listening
Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management
