Training and Certification of Internal Auditors in the Public Sector and their Continuing Professional Development

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Training and Certification of Internal Auditors
in the Public Sector and their Continuing
Professional Development

• Marija Matek,
• Training Coordinator for Internal Auditors
  Ministry of Finance - Croatia,
• Central Harmonisation Unit
• 
  Chisinau - Moldova, June 8 - 9 2011

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CONTENT

• 1. LEGAL BASE
• - strategic documents
• - legal framework
• 2. TRAINING PROGRAMME
• - history
• - overview
• 3. PROGRAMME COUNCIL
• 4. CONTINUING PROFESSIONAL DEVELOPMENT

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1. Strategic documents

• PIFC Strategy 2009 - 2011
• - strengthening the capacity of internal
  auditors - number and competence
• Human Resources Development Strategy 2010 -
  2013- training of civil servants- improvement
  of career development system and retention of
  quality staff- number of programs for promotion
  and career development
• Strategy and Action Plan against Corruption-
  measure 35 - Training of internal auditors and
  the persons responsible for the financial
  management and control

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Legal framework of the training programme (1/2)

• Law on Public Internal Financial Control in the
  Public Sector
• (OG 141/06) http//www.mfin.hr/hr/pifc-1-2
• Rulebook on user of budget internal audit (OG
  35/08)
• http//www.mfin.hr/hr/unutarnja-revizija-1-2-3
• Programme for professional training for
  certified public internal auditor (May 31, 2010)
• Instruction on the implementation of training and
  exams for the profession of a certified internal
  auditor in the public sector     (May 31, 2010)

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Legal framework of the training programme (2/2)

• The decision on the amount of the costs of
  training, of how to release cost of training for
  the profession of a certified internal auditor in
  the public sector (June 1, 2010)
• Instruction on continuous professional training
  of internal auditors in the public sector
  (December 20, 2010)
• - Catalog of training, knowledge base
• Direction on the implementation of mentoring in
  practical training for the profession of a
  certified internal auditor in the public sector
  (February 22, 2011)
• http//www.mfin.hr/hr/izobrazba-unutarnjih-revizor
  a

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2. Training programme a brief history

• 26 April 2004
• CARDS 2002 - Development of PIFC and Internal
  Audit- 5 modules- Were held three rounds of
  training ( 60 auditors)- Trainings for trainers
  ( 15 trainers)- Mentoring
• 2007 - first redesigning of the programme
• - 7 modules - IT and accounting module separated
  in two modules, introduced a practical module
• 2010 - second redesigning of the programme
• - 5 modules (below ...)

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Overview of training programme
Module 1 The role of internal audit in
internal financial control system in
public sector
Module 2 - The methodology of internal audit work
Module 3 Auditing skills and techniques
Module 4 - Financial management and accounting in
the public sector
Module 5 - Applying the methodology of
internal audit work on practical examples
Professional certification
Practical experience (2 audits)
cca 8 -12 months
Oral exam
Written exam
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Module 1 The role of internal audit in internal
financial control system in public sector

• Education and profession of internal auditors
• Development and arrangement System of Internal
  Financial Control (PIFC) in accordance with
  international and EU standards
• Organization and carring out of internal audits
  in accordance with IIA and IPPF standards
• Components of Financial Management and Control
  (COSO)- Control environment
• - Planning and Risk Management- Control
  Activities- Information and communication-
  Monitoring and evaluation
• Code of ethics for internal auditors and
  internal audit roles in the prevention of risk of
  irregularities and fraud

• Presentations
• Question and Answer
• Exercise - Risk Assessment
• Test - Ethics

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Module 2 The methodology of internal audit work

• Planning of internal audit
• Performing the internal audit
• - Planning
• - Identification and recording system-
  Assessment of internal control systems- Testing
  the application and effectiveness
• of controls- Assessment of Internal
  Control System- Reporting- Follow up
• Audit file and documentation standards
• Audit supervision

• Presentations
• Case study
• Exercise
• Additional materials Internal
• auditors maunual

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Module 3 Auditing skills and techniques

• Communication skills
• Methods of collecting, processing and presenting
  data
• Working meetings
• Working relations and teamwork
• Interviewing and skills techniques
• Presentation skills
• Skills of applying information technology in
  audit work

• Presentations
• Exercise comunication, presentations,
• chairnig meetings, conduct interviews
• Work in groups
• Interactive communication

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Module 4 - Financial management and accounting in
the public sector

• Financial Management
• General Accounting
• Budget Accounting
• Business Accounting
• Analysis of accounting data
• Managerial and Cost Accounting

• Presentations
• Exercise
• Interactive communication

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Module 5. Applying the methodology of internal
audit work on practical examples

• Presentations
• Case studies and
• examples from practice
• Exercise in work groups
• Discussion of solutions

• Applying the methodology of performing an
  internal audit on a practical example
• Analysis of examples of audit reports

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Written Exam

• After completion of theoretical training (5
  modules)
• Written Exam (100 questions)
• 25 questions from the module first to fourth- 5
  questions YES-NO- 15 questions - one or more
  correct answers form offered- 5 questions -
  requires a descriptive answer
• Passage 60 correct answers (60)

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Mentoring and oral exam

• Two practical audits under the supervision- If
  the institution has an internal audit unit with
  experienced internal auditors - a mentor can be
  any of these internal auditors who has the
  certification and has done at least three audit
  reports - If the institution has not (yet)
  established an internal audit unit and
  experienced internal auditors do not exist, the
  mentors are appointed by CHU
• Oral examination two audit reports in front of
  committee for exam

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Requirements for certification

• Attendance at all modules (M1- M5)
• Passed a written exam
• Made two audit reports (with supervisor/mentor)
• Successfully completed the oral exam
• Certification 1 2 3 4

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3. Programme Council - Evaluation and
Development

• Advisory body that provides CHU and consider
  proposals to ensure the development of quality
  vocational education
• Members are appointed by the Minister of Finance
  proposal CHU director from the circle of people
  with experience in the training of internal
  auditors and from persons with knowledge in a
  particular area of ??professional training for
  internal auditors
• The President is the head of CHU

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4. Continuing Professional Development

• Instruction on the continuous professional
  training certified internal auditor- Training
  Catalog- Sign in continuous professional
  development for the CHU- Common Knowledge (BoK)

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Optional module

• Internal audit of programms and projects financed
  by EU
• Internal Audit of Information Systems
• Internal audit of Financial Management system and
  Accounting

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Areas of continuing professional development
(workshops)

• Internal Audit Accounting and Finance
  Managing the public sector Project Management
  Information Technology Mathematics,
  statistics and quantitative applications for
• internal audit needs Administrative
  and Labour Law Human Resources Management
  Public procurement EU Funds

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Seminars, conferences, ...

• Organizing CHU - Annual IA Seminar - every year
• EU supported projects
• HIIR
• SIGMA
• Organised by other Institutions
• - PEM-PAL - Center of Excellence in Finance,
  Ljubljana
• - European Commission - IEDC - School of
  Management, Bled
• - IIA Conferences

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Synopsis

• Methodological tool for a better compliance and
  content control activities of trainers (content,
  mode and time) before the modules start
• Components - name of the programme- workshops
  name
• - speakers name - scope- objective
• - target group- content- key points-
  methodology- materials

- elaboration of the content - objectives-duration
-notes for trainers
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Evaluation

• The form consists of- assessment of trainers-
  assessment of materials
• - assessment of working area and equipment-
  comments and recommendations for improvement for
  each part of
• module
• Program Council discuss the comments and grades
  of participant and upgrade and work on the
  quality of further education

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We are proud of...

• Internal audit has become a profession that is
  recognized, accepted and appreciated in the
  public sector
• Certification is an integral part of the system
  of coefficients and salaries in public
  administration, public sector and local
  government
• Continuous activity that provides the necessary
  capacity in the public sector which is pleased by
  EK
• Certification of the public internal auditor is
  accepted in public sector enterprise

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We are especially proud of

• IIA to us (IA) through the Internal Audit
  Capability Model (IA-CM) for Public Sector cited
  as the leading practice of internal auditing of
  public sector

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We are especially proud of

• Recognition of good practice, by Robert de
  Konings book on PIFC

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What we want in the future ...

• To be fully compliant with the IIA standards-
  1230 - Continuing Professional Development
• The CPIA be accepted as part 4 IIA - CIA Exam
• Influence the development of new studies of the
  internal audit of the public sector in
  cooperation with the academic community
• Explore and demonstrate the added value of public
  sector internal audit
• Write a book on the public sector internal audit
• To be a recognized participant in the development
  of our country