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
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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:
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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
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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
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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:
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IIA UK and Ireland
IIA South Africa
IIA New York, USA
IIA Brazil
IIA Montreal, Canada
IIA Kenya
IIA Fiji
IIA Cairo, Egypt
6000
2500
2000
1000
450
225
55
16
Certified Internal Auditor
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
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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
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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
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(40 awarded year passed; 40 awarded
subsequent year)
• Other CPE requirements for nonpracticing
and retired CIAs
Professional Development
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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?