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Different Approaches to Capacitate Internal Audit Xolani Ndlovana 10 April 2019. TOPICS. IMPORTANCE OF INTERNAL AUDIT. Cornerstone of Good Corporate governance, Bridges the gap between management and the board (council),
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Different Approaches to Capacitate Internal Audit Xolani Ndlovana 10 April 2019
IMPORTANCE OF INTERNAL AUDIT • Cornerstone of Good Corporate governance, • Bridges the gap between management and the board (council), • Assesses the ethical climate and the effectiveness and efficiency of operations, • Compliance with rules, regulations, and overall best business practices.
OPTIONS FOR RESOURCING INTERNAL AUDIT Regardless of size, councils are encouraged to have an appropriately resourced internal audit function. Resources to carry out its work, including skilled auditors, appropriate technology tools, budgets and continuous professional development opportunities.
OPTIONS FOR RESOURCING INTERNAL AUDIT • Maintain independence and objectivity • Have clear roles and responsibilities
OPTIONS FOR RESOURCING INTERNAL AUDIT In-house - employed by organizations to perform the internal auditing activity. Co-sourced—provided by a combination of internal staff and an external service provider or providers, and managed within the department. Outsourced—provided by an external service provider contracted to deliver a range of internal audit services. Councils are also encouraged to consider resourcing their internal audit function via collaborative arrangements with other councils or through a regional organisation of councils (ROC).
CONSIDERATIONS & RECOMMENDATIONS AUTOMATION OF INTERNAL AUDIT QUALITY ASSURANCE PARTNERING WITH MANAGEMENT Municipalities are still expected to conduct independent external quality assessments The benefits are massive = Conformance to ISPPIAs and IPPF • Artificial Intelligence • Data Analytics & Robotics • Continuous Audits • Beyond Sampling Partner more with management to help correct problems and improve processes in real time, instead of highlighting problems after they occur. Be more relevant and add more value as a trusted advisor.
CONSIDERATIONS & RECOMMENDATIONS INTEGRATION INSIGHT ALIGNMENT ADVOCACY Internal audit should avoid being an independent island and become an integrated part of the municipal processes, participating more with first (Management) and second (Risk Management & Compliance) line functions. Internal Auditors must provide more advocacy and education to the various stakeholders within and outside municipalities, to deal with misconceptions about the work of internal auditors. Take advantage of the International Internal Audit Awareness Month (May each year). Resources on /na.theiia.org/ website A forward-Looking Mindset: King IV outlines that Internal Audit provides value by contributing insight into the activities of the organisation and, as a further enhancement, foresight. This is further highlighted under ISPPIA 2100 – Nature of Work Align the work of internal audit to the mission, vision, values, and objectives of the organization. Also, ensure alignment with enterprise risk management and other second line functions. Internal audit must focus attention on risk-based audits and define risks broadly, including strategic and emerging risks.
END Xolani Ndlovana Telephone: 011 241 0619 Email: firstname.lastname@example.org Your super corporate governance