The modern role of internal auditing in government

1
The modern role of internal auditing in government

• Rob Newsome
• African Regional Director

2
Definition of Internal Auditing

• Internal auditing is an independent, objective
  assurance and consulting activity designed to add
  value and improve an organizations operations.
  It helps an organization accomplish its
  objectives by bringing a systematic, disciplined
  approach to evaluate and improve the
  effectiveness of risk management, control, and
  governance processes.

3
Global Changes and Trends

• Global organizational change
• Technological innovation
• Legislative imperatives
• Privatization in emerging economies
• Clients changing expectations
• Risk Management

4
How is the audit profession changing in Africa?

• Independence becoming more important
• Focus and scope will expand further into
  governance and risk
• Expanded expertise
• Pre audits disappearing
• Audit of management activity

5
Internal auditing and the global financial
architecture

• Established role in IFAC
• Public sector internal auditing previously not
  considered, but.
• IIA actively involved with INTOSAI
• IIA actively involved in IFAC public sector
  initiatives
• INTOSAI now active in IFAC
• Public sector internal auditing now
  internationally acknowledged

6
Current Critical Issues

• Environmental, Health Safety
• External Auditor Independence Issues
• Fraud, Money Laundering
• Outsourcing / Co-sourcing

• Risk Management
• Governance
• E-Business
• Privacy
• Technology

7
Future Trends for Internal Auditors

• Increased competency levels
• Stronger than average computer skills
• More in-depth understanding of the business
• Certifications

8
What can Internal Auditors Continue to do?

• Comply with the Professional Standards
• Obtain professionally recognized qualifications
• Embrace modern risk control frameworks
• Focus on the management of risks
• Continue to educate and coach management on the
  importance of managing and controlling risks

9
The Institute of Internal Auditors Mission
Statement

• To be the primary international professional
  association, organized on a worldwide basis,
  dedicated to the promotion and development of the
  practice of Internal Auditing

10
The IIA Motto

• Progress Through Sharing

11
The IIA

• 1990 Membership 39000
• 2003 Membership over 84000
• 49 in North America and Caribbean
• 51 in other countries
• Approximately 250 IIA Chapters and National
  Institutes worldwide located in more than 100
  countries

12
The IIA in Africa

• Algeria
• Botswana
• Cameroon
• Egypt
• Ethiopia
• Ghana
• Mali
• Morocco
• Nairobi
• Nigeria
• Senegal
• South Africa
• Tunisia
• Zambia
• Zimbabwe

13
IIA Africa Initiatives

• Interaction with public sector associations e.g.
  ESAAG
• Involvement with the Pan African Consultative
  Forum on Corporate Governance
• Regional Training seminars
• Establishing Regional Secretariat

14
IIA and the Public Sector in South Africa- an
example of co-operation.

• Public Finance and Management Act (PFMA)
  requirement for internal audit functions to
  comply with IIA Standards.
• Linking IPFA and IIA activities with special
  interest groups for public sector internal
  auditors.

15
IIA and the Public Sector in South Africa- an
example of co-operation continued

• Specific director position on the IIA-SA Board
  for the public sector.
• Development of public sector training courses.
• Providing professional representation to
  government officials on matters impacting on
  internal audit.

16
IIA Influencing the Profession

• Professional Practices Framework
• Global Certification
• Control Models
• Critical Infrastructure Protection
• Risk Management
• Various Research Projects
• Collaboration and representation

17
Certified Internal Auditor (CIA)

• Designation is recognized and accepted worldwide.
• The CIA has been in existence for more than 27
  years
• More than 42000 internal auditors hold this
  designation
• The CIA is provided in 12 languages

18
Some IIA Contacts for Africa

• Zimbabwe
• Ms. Portia John
• PO Box 6170
• Harare
• ZIMBABWE
• Business no 263 780265
• Email iiazim_at_mweb.co.zw
• Zambia
• Mr. Hamish Isaac Chipungu, CIA
• Bank of Zambia
• PO Box 30080
• Lusaka
• ZAMBIA
• Business no [phone]
• Fax no. [phone]
• Email chipungu_at_ivillage.com
•  

Ethiopia Mr. Wolderuphael W. Giorgis PO Box
26887 Addis Ababa ETHIOPIA Business no. (251)
171-1277 202 Fax no. [phone] Email
amidroc_at_telecom.net.et   Kenya Rev. Philip
Julius Opwora Makokha Government of Kenya PO
Box 8605 Nairobi 00100 KENYA Phone no. 254 2
318 967 Fax no. 254 2 336 545 Email
revmakokha_at_yahoo.com
Malawi (295) Mr. Macfussy Michael
Kawawa National Bank Of Malawi PO Box
945 Blantyre MALAWI Business no. 265 624022
Fax no. 265 624548 Email natoris_at_sdnp.org.mw
19
Some IIA Contacts for Africa

• Regional Director Africa. Rob Newsome
• 4 Kerry Road
• Parkview 2193
• Johannesburg
• SOUTH AFRICA
• Business no. 27 83 222 5970
• Fax no. 27 11 301 8484
• E-mail newsom_r_at_mtn.co.za

Sylvia Boyd Assistant Vice President, Global
Development The Institute of Internal
Auditors 247 Maitland Avenue Altamonte Springs,
Florida 32701-4201, USA Tel [phone] Fax
1-407-937 1101 Email sboyd_at_theiia.org Web
site www.theiia.org