Building Capacity to Direct Auditing Resources to Greatest Effect

Gert van der Linde, World Bank

Uganda, Kampala

May 19, 2004

Building Capacity to Direct Auditing Resources to Greatest Effect

• Audit Committee

• Client Management

• Audit Management

• Audit Staff

Audit Committee• Independent, non-executives….• What:

– Corporate governance arrangements– Risk and Audit Committees ToR’s– Internal Audit ToR – Risk management framework and responsibility– Risk management and internal audit policies– Overview of risk management and audit methodologies– Use of financial and audit information– Managing meetings

• How:– Annual revision of ToR’s and policies– Audit committee checklist– Audit committee training sessions– Individual training sessions as may be needed

Client Management• What:

– Corporate governance arrangements– Risk and audit committee ToR’s– Risk management framework and responsibility– Risk management and internal audit policies– Overview of risk management and audit

methodologies– Use of financial and audit information

• How:– Awareness sessions on governance, risk management

and audit policies, frameworks and methodologies– Annual confirmations by managers on internal control

Audit Management• What:

– Corporate governance arrangements– Risk and audit committee ToR’s– Risk management framework and responsibility– Risk management and internal audit policies– Risk management and audit methodologies– Risk and audit management skill set

• Client relationship management• Planning, scheduling and resource management• Audit report writing• Performance management• Quality assurance

• How:– Awareness sessions on governance, risk management and audit policies,

frameworks and methodologies– Appoint qualified professionals– Annual CPE– Annual development plan that gets monitored

Audit Staff• What:

– Overview of • Corporate governance arrangements• Risk and audit committee ToR’s• Risk management framework and responsibility• Risk management and internal audit policies

– Risk management and audit methodologies– Audit skill set

• Risk and control assessment• Working paper management• Audit report writing

• How:– Awareness sessions on governance, risk management and audit

policies, frameworks and methodologies– Appoint trained staff– Annual training programs on methodologies and audit systems– Annual development plan that gets monitored

Providers

• Institute of Internal Auditors

• Universities

• Technikons

• Short course provides

• External auditors

• Partners

• It does not just happen – manage it.

Institute of Internal Auditors

• The IIA is an association of individual members • All members commit to follow the IIA Code of

Ethics and International Standards for the Professional Practice of Internal Auditing

• Members join The IIA through local or national affiliates (chapters and institutes), or directly as members-at-large (where no affiliate exists)

Membership

• More than doubled in 12 years

– January 1,1992 Membership = 44,454– January 31, 2004 Membership = 90,389

• 44,206 or 48 % in North America

• 46,183 or 52 % in other countries

Affiliate Structure

• 243 affiliates in more than 80 countries• Some examples:

– IIA UK and Ireland 6000 – IIA South Africa 2500– IIA New York, USA 2000 – IIA Brazil 1000– IIA Montreal, Canada 450– IIA Kenya 225– IIA Fiji 55– IIA Cairo, Egypt 16

Certified Internal Auditor

Established in 1972, the CIA is the Global Mark of Excellence in Internal Auditing

Established in 1972, the CIA is the Global Mark of Excellence in Internal Auditing

Certification

• The best certification for understanding business threats and internal controls, the CIA measures a candidate’s:– Ability to identify inherent and potential risks.– Knowledge of and capacity to apply internal

controls.– Understanding of 21st century management

principles.

Certification Provides:

• Verification of experience, education, and technical proficiency

• Confirmation of professional preparation and commitment

• A prestigious credential for the employment market

• Recognition by management and peers

• Personal satisfaction

CIA Program Requirements

• Code of Ethics

• Character reference

• Bachelor’s degree (or equivalent)

• Work experience

• Examination

• Continuing Professional Education

CIA Exam Information

• Exam offered in May and November on a Wednesday & Thursday. (Note: Third Thursday determines dates.)

• More than 40 000 individuals worldwide have earned the CIA designation

Topic Areas Currently Tested

• Auditing

• Data Gathering, Documentation, & Reporting

• Finance

• Financial Accounting

• Fraud

• Information Technology

• Regulatory Environment

• Managerial Accounting

• Management Control

• Operations Management

• Professionalism

• Problem Solving & Evaluating Audit Evidence

• Sampling & Mathematics

Continuing Professional Education

• Practicing CIAs must complete a total of 80 hours of acceptable CPE every 2 years

• Self certification• Forms submitted to IIA on a biennial basis• 80 CPEs awarded upon passing exam• (40 awarded year passed; 40 awarded

subsequent year)• Other CPE requirements for nonpracticing

and retired CIAs

Professional Development

• International Conferences• Seminars• Educational Products• Periodicals• Academic Relations• GAIN, IT, Specialties• IIA WEB SITE – WWW.THEIIA.ORG• Affiliate programs

Building Capacity to Direct Auditing Resources to Greatest Effect

Questions?