INTERNAL AUDIT THE NICHE FOR GROWTH - ACRA
INTERNAL AUDIT THE NICHE FOR GROWTH - ACRA
INTERNAL AUDIT THE NICHE FOR GROWTH - ACRA
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<strong>INTERNAL</strong> <strong>AUDIT</strong><br />
<strong>THE</strong> <strong>NICHE</strong> <strong>FOR</strong> <strong>GROWTH</strong><br />
A PRESENTATION TO STAKEHOLDERS<br />
ABOUT <strong>THE</strong> VALUE OF <strong>INTERNAL</strong> <strong>AUDIT</strong>ING
About the Institute of Internal Auditors<br />
Established in 1941, the IIA is an<br />
international professional association<br />
of more than 170,000 members.<br />
The Certified Internal Auditor designation is the<br />
only globally accepted certification for internal<br />
auditors. There are 100,000 CIAs worldwide.
About the IIA in Singapore<br />
Established in 1976, 2,000 members<br />
• There are 1,000 Certified Internal Auditors in Singapore.<br />
• Guideline 13.4 of the Singapore Code of Corporate<br />
Governance – “The Internal Auditor should carry out its<br />
function according to … the Standards for the Professional<br />
Practice of Internal Auditing set by the Institute of Internal<br />
Auditors.”<br />
• Together with SIAS and SMU, launching the inaugural<br />
Internal Audit Excellence Award as part of the Investors’<br />
Choice Awards 2011.
What should you expect from your Internal Auditor ?<br />
“ The internal auditor’s job is to leave no stones<br />
unturned.<br />
He is the watchdog, the buddy to the CEO.<br />
He is the conscience to the board and the CEO.<br />
As the guardian angel to the CEO, he should tell him<br />
where the devils are.”<br />
David Gerald, President, SIAS
The Value of Internal Audit<br />
• An independent function designed to improve an<br />
organization’s operations.<br />
• It helps an organization accomplish its objectives by<br />
improving the effectiveness of risk management, control,<br />
and governance processes.<br />
Definition of Internal Auditing, IIA<br />
5
The Value of Internal Audit<br />
GOVERNING BODIES AND SENIOR MANAGEMENT RELY ON<br />
<strong>INTERNAL</strong> <strong>AUDIT</strong>ING <strong>FOR</strong> OBJECTIVE ASSURANCE AND INSIGHT ON<br />
<strong>THE</strong> EFFECTIVENESS AND EFFICIENCY OF GOVERNANCE, RISK<br />
MANAGEMENT AND <strong>INTERNAL</strong> CONTROL PROCESSES.
The Value of Internal Audit<br />
Internal Auditing provides assurance on<br />
the organization’s governance, risk<br />
management and control processes to<br />
help the organization achieve its<br />
strategic, operational, financial, and<br />
compliance objectives.<br />
Internal Auditing is a catalyst for<br />
improving an organization’s<br />
effectiveness and efficiency by providing<br />
insight and recommendations based on<br />
analyses and assessments of data and<br />
business processes.<br />
With commitment to integrity and<br />
accountability, Internal Auditing<br />
provides value to governing<br />
bodies and senior management<br />
as an independent source of<br />
objective advice.
Growth Opportunities<br />
• Proposed new Guideline 13.3 - The internal audit<br />
function should be staffed with persons with the relevant<br />
qualifications and experience.<br />
• There are only 1,000 Certified Internal Auditors in<br />
Singapore.<br />
• Working with the Singapore Accountancy Council to<br />
establish the Certified Practicing Internal Auditor<br />
qualification.
Growth Opportunities<br />
Proposed new Guideline 12.4<br />
The AC should report to the Board at least<br />
annually the adequacy and effectiveness of<br />
the company's internal controls.<br />
Shareholders/<br />
Stakeholders<br />
Board<br />
Proposed new Guideline 11.2<br />
The Board should review the adequacy and<br />
effectiveness of the company's risk management<br />
and internal control systems.<br />
External<br />
Audit<br />
Audit<br />
Committee<br />
Proposed new Guideline 11.3<br />
The Board should comment in the<br />
company's annual report on whether it has<br />
received assurance from the CEO and the<br />
CFO regarding the effectiveness of the<br />
company's risk management and internal<br />
controls system.<br />
CEO/CFO<br />
Risk<br />
Management<br />
Committee<br />
Risk<br />
Management<br />
Unit<br />
Proposed new<br />
Guideline 11.4<br />
The Board may<br />
establish a separate<br />
board risk committee or<br />
otherwise assess<br />
appropriate means to<br />
carry out its<br />
responsibility of<br />
overseeing the<br />
company's risk<br />
management framework<br />
and policies.<br />
Risk Assessment<br />
Business Units
<strong>FOR</strong> MORE IN<strong>FOR</strong>MATION<br />
The world’s leader in certification, education,<br />
research, and technological guidance for the<br />
profession of Internal Auditing.<br />
www.iia.org.sg