Auditing Financial Institutions - MIS Training

Auditing Financial Institutions Day One
Tuesday 15th May 2007
Day One Agenda
08.30 Registration & Coffee
09.00 Chairman’s Opening Remarks
Graham J. Ayre, Head of UK Internal Audit, Lincoln Financial Group
Graham Ayre is Head of the Internal Audit function for the Lincoln Financial Group companies based in the UK, a group that includes Lincoln Assurance Limited, Lincoln Investment Management Limited and Lincoln Unit Trust Managers Limited. Amongst my other responsibilities, he
has been part of a small team of staff responsible for implementing an enhanced risk assessment process throughout the companies and determining how the companies could best satisfy the requirements of the FSA’s regulatory regime. He has also served on the team responsible
for assessing the implications of the Sarbanes-Oxley Act on the Lincoln companies in the UK and what needed to be done to comply with them (NB. The Lincoln companies in the UK are owned by Lincoln National Corporation - a quoted US company which was an accelerated filer).
09.10 Meeting Audit Committee Expectations
• Integration of internal audit in overall risk management framework
• Business knowledge/challenging approach
• Internal audit planning & reporting
• Regulatory change
• Adherence to IIA Standards
Ian Gregory, Deputy General Manager & Head of Internal Audit, Sumitomo Mitsui Banking Corporation Europe
Ian has over twenty-five years experience in Internal Audit and Compliance. He is currently Head of Internal Audit at Sumitomo Mitsui Banking Corporation Europe and is responsible for a team of 10 auditors. Prior to joining Sumitomo he was Head of Internal
Audit for Barclays Private Bank for 5 years and before joining Barclays was Head of Audit at a private Swiss Bank based in London. He started his career in audit with JP Morgan then called Morgan Guaranty. Ian is a Fellow of the Institute of Internal Auditors and
an Associate of the Chartered Institute of Bankers. He is also currently a member of the Banking and Financial Services Internal Audit Group management committee and was a Director of the Institute of Internal Auditors - UK and Ireland.
09.50 CASE STUDY Effectiveness of Internal Audit - Are We Measuring the Wrong Things?
This session aims to discuss some of the flaws in the current definition and limitations of the standard measures of effectiveness of internal audit, and what internal auditors
should focus on to develop and improve their effectiveness in their organisation.
• Defining effectiveness of internal audit goes beyond the audit department • What does an organisation with an effective internal audit function looks like?
• What influences the effectiveness of an auditor and the internal audit department? • Measuring effectiveness and being effective in the real world
Vicky Kubitscheck, Head of Audit, Risk & Compliance, AEGON UK
10.20 CASE STUDY Changing an International Internal Audit Function
Neil Lockhart, Head of Audit Wealth Management & Financial Products, SEB. Paul Marshall, Managing Director, Protiviti*
11.00 Morning Coffee
11.20 CASE STUDY Auditing Outsourced Operations: Measuring Risk of Security & Reputation
• Risk assessing service providers
• Information gathering and reporting
• Determining what controls are appropriate
• Particular problem areas and how to address them
• Ongoing monitoring and governance
Hilde Øiseth Nordlid, Chief Auditor for Operational Audits, Norges Bank
12.00 Applying and Auditing the International Financial Reporting Standards
• Ensuring that your company is accurately represented to the capital markets • Tactics for challenging your auditors
• Are you providing adequate assurance to stakeholders?
• The latest audit tools & technologies
• Are you receiving the added value you expect from your external auditors? • Does a lack of preparation among analysts really matter?
Iain Coke, Head of the Financial Services Faculty, ICAEW
12.40 Lunch
Breakout 1
Regulatory Compliance in Financial Institutions
14.00 CASE STUDY Sarbanes Oxley in a Financial Services Context
Although the Sarbanes-Oxley Act is now over 4 years old, the lack of prescription in
the Act is still leading to much debate as to how it should be interpreted and what
needs to be done to comply with it. This presentation will seek to:
• Review the latest issues concerning the interpretation of the Sarbanes-Oxley Act
and the steps needed to comply with the requirements
• Cover the progress made in reviewing and amending Auditing Standard No 2
• Compare the Sarbanes-Oxley requirements with those of the FSA
• Offer a practical insight into the challenges facing a UK based financial services
company (which has needed to report under Sarbanes-Oxley since its inception).
Graham J. Ayre, Head of UK Internal Audit, Lincoln Financial Group
14.45 Session Change
14.50 CASE STUDY Impact of Basel II on Internal Audit in a Commercial Banking
Environment
• Objective of Basel II
• Method used to achieve objective
• Impact of Basel II from a banking perspective
• Expected benefits to market participants
Paul Brennan, Internal Audit Manager, Anglo Irish Bank
Paul Brennan, BBS, MSc is Internal Audit Manager at Anglo Irish Bank. His internal audit responsibilities
include Group Trading & Liquidity Management, Debt Capital Markets, Corporate Treasury Services and the
implementation of Basel II. His previous role up to January 2006 was Head of Corporate Treasury Credit
Risk Management.
Breakout 2
Compliance in Investment Management & Insurance
Investment Management
14.00 CASE STUDY Auditing Compliance
• Relative roles of compliance and internal audit in the business
• Relationship with risk management
• Compliance obligations and audit objectives
• Scope of the review
• Independence and reporting lines
Tony Kemp, Head of Compliance and Internal Audit, CCLA Investment Management
Tony has 20 years’ experience in Internal Audit including Head of Department positions in firms covering a wide range of regulated activities. He
has also been in charge of compliance for a number of years, notably for private clients at Cazenove Capital Management. Before this he was
responsible for audit and compliance for the Norwich & Peterborough Building Society Group. His career includes General Manager and Director
positions. Tony has an MBA and is a Fellow of the Chartered Institute of Management Accountants.
Insurance
14.50 CASE STUDY Implementing IT Governance by using the COBIT Maturity Model:
Challenges and Conclusions
Based on Solvency II and the fact that the quantification of operational risks is very
complex, Swiss Life Group decided to build up its IT Risk Management on the quality
of internal controls. The basis for this was the COBIT Maturity Model. This cuttingedge
case study will give you practical insights into:
• Why IT Governance is important
• Satisfying stakeholders
• How to implement and audit IT governance
• IT governance life-cycle challenges
• Case study: how to implement IT governance using the COBIT Maturity Model
• Summary and conclusions
Urs Fischer, Vice President, Head of IT Risk Management & Security, Swiss Life Group*
15.30 Afternoon Tea
16.00 CASE STUDY Will MiFID add Complexity to Audit Responsibilities?
• Internal audit’s role in checking
• Internal audit’s challenges
- organisational requirements (right risk-control functions, resources, - the complexity and level of details of MiFID
independence, reporting lines etc) - the risk of non-harmonised European approach
- monitoring processes and procedures (record keeping, best execution, - many new requirements and business approaches to adapt to
suitability & appropriateness, outsourcing etc)
Sonja Lohse, Head of Group Compliance, Nordea Bank
After finishing her law studies at the university of Helsinki in 1980, Sonja Lohse started her banking career. She has held numerous positions within the Group as a lawyer specialised in securities legislation but also as head of custody department. In the beginning of 2000 she
started to build up the compliance function in Nordea as head of Group Compliance. Sonja has been involved in several European committees around the harmonisation of European securities legislation and is currently a member of the CESR MiFID Level 3 working group.
16.45 PANEL SESSION Examining the Implications of Current and Forthcoming Regulatory Developments for Internal Auditors and their Organisations
• Basel II, PSB and the Capital Requirements Directive
• Sarbanes-Oxley
• MiFID
• Maintaining audit independence while avoiding duplication of effort
• IFRS
Graham J. Ayre, Head of UK Internal Audit, Lincoln Financial Group
Paul Brennan, Internal Audit Manager, Anglo Irish Bank
Tony Kemp, Head of Compliance and Internal Audit, CCLA Investment Management Sonja Lohse, Head of Group Compliance, Nordea Bank
17.30 Close of Day One