Characterizing the Role of Internal Audit A Government Perspective

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Foundation. MyselfInternal Audit In Central Government in UKLate 1970\'s feedback from the National Audit Office (NAO) Parliament\'s outside money related inspectors in a report to the Public Accounts Committee (PAC)Wass Bancroft Report prescribing change and prompting a fundamental level of preparing standard (BATS) and a typical methodology crosswise over Departments

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Characterizing the Role of Internal Audit – A Government Perspective Ray Harris Ray Harris

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Background Myself Internal Audit In Central Government in UK Late 1970's feedback from the National Audit Office (NAO) Parliament's outer monetary inspectors in an answer to the Public Accounts Committee (PAC) Wass Bancroft Report prescribing change and prompting to a fundamental level of preparing standard (BATS) and a typical approach crosswise over Departments – from budgetary based 'Interior Check' and 'Tick & Turn' to a 'Frameworks based approach' AND embracing the IIA as the favored proficient body Where are we now?

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UK Accountability Framework IA

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Accounting Officer's Memorandum Accounting Officers are independently designated by HM Treasury and the obligations of the Accounting Officer in connection to Government Accounting directions are set out in 'The Accounting Officer's Memorandum' A key segment of the Memorandum is that " Internal Audit is built up as per the goals, gauges and practices set out in the 'Administration Internal Standards' (GIAS) distributed by HM Treasury Accounting Officers have a specific duty regarding guaranteeing consistence with parliamentary prerequisites in the control of consumption and specifically " Regularity and Propriety'

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Regularity = necessity for all use and receipts to be managed as per the enactment approving them and the tenets of Government Accounting i.e. 'The Ambit of the Vote' Propriety = the further prerequisite that consumption and receipts ought to be managed as per Parliament's goals and the standards of parliamentary control incorporating the traditions concurred with Parliament (and specifically the Public Accounts Committee (PAC)

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Government Internal Audit Standards 10 Standards 5 identifying with Organizational status 5 identifying with Operational approach:

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Organizational Standards Standard 1: Scope of Internal Audit – characterized by the Accounting Officer in Terms of Reference which among others: Standard 2: Establish hierarchical autonomy and grasp the hazard administration control and administration procedures of the association including every one of its operations, assets, administrations and obligations regarding different bodies

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Establish inward review's privilege of access to all records, resources work force and premises and its power to acquire such data as it considers important to satisfy its duties An Accounting Officer is accused of sorting out inside review as per the targets, gauges and practices set out in GIAS . The HIA ought to be of fitting evaluation or status, have wide involvement of interior review and administration, and must meet the Government Internal Audit Standard and the Senior Staff standard as set down in GIAS .

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8.  The HIA is capable to the Accounting Officer, however ordinarily reports to the Principal Finance Officer and the review board of trustees. In all cases, the Head of Internal Audit has the privilege of direct access to the Accounting Officer.

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Standard 3: Audit Committees Accounting Officer is required to set up an Audit Committee to: Advise him on the abilities, capability, TORs viability and resourcing of Internal Audit including arranging, detailing, quality, associations with administration and outside review and the sufficiency of administration's reactions to review reports

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Head of Audit's Relationship The Head of Internal Audit ought to go to Audit Committee gatherings The Head of Internal Audit ought to have a privilege of access to the Chair of the Audit Committee to examine insect issues they wish to raise

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Standard 4: Relationships with Management, different Auditors and other Review Bodies Relations with Management – accentuation on administration to administration – shared trust – included esteem – without trading off obligations to the Accounting Officer Relations with other Internal Auditors – entomb departmental co-operation – dependence on other's work – Accounting Officer support

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Relationships with External Auditors - general gatherings – techniques` and systems – dependence by outer review on the work of inward review Relationships with other survey bodies – administration assessment, consistence groups, liasion and quality affirmation to place dependence

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The Head of Internal Audit ought to set up a way to pick up a diagram of other confirmation suppliers' work and if suitable answer to the Accounting Officer

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Standard 5: Staffing Training and Development Internal review ought to be properly staffed as far as numbers, evaluations and experience, having respect to its targets and guidelines. Inner inspectors must be appropriately prepared to satisfy their duties. Government Internal Audit Certificate (GIAC)- obligatory Continuing expert improvement

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Standard 6: Audit Strategy HIA to create and keep up a proficient and powerful technique for giving the Accounting Officer a target sentiment on the viability of the association's hazard administration , control and administration game plans The Head of Internal Audit's assessments are a key component of the structure of affirmation the Accounting Officer needs to illuminate their fulfillment of the yearly Statement of Internal Control (SIC)

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Planning: interior review work ought to be arranged at all levels of operation to build up needs, accomplish destinations and guarantee the productive and successful utilization of review assets

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Standard 7: Management of Audit Assignments Assignment arranging – degree, goals and timing – revealing lines Sponsors for every task Approach – targets, dangers and controls – suitability – over/under control Conclusions, report proposals and feeling Follow – up – administrations execution of reactions to review suggestions

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Standard 8: Due Professional Care Skill that a sensibly judicious and able inside examiner will apply in playing out their obligations Due care = working with capability and` steadiness Due expert care = the utilization of review aptitudes and judgment in light of fitting background preparing (counting CPD) capacity, honesty and objectivity

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Conduct of individual inspectors – consistence with standard – proper program of value confirmation survey by HIA and ranking staff

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Standard 9: Reporting Standards style and system set by HIA produces composed answer to the Accounting Officer coordinated to bolster the Statement of Internal Control (SIC) HIA produces a yearly report covering the general supposition on the control structure notwithstanding the yearly report HIA makes game plans for break answering to the Accounting Officer over the span of the year

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Standard 10 : Quality Assurance A persistently viable level of execution consistent with the gauges is kept up HIA to build up a quality affirmation program intended to pick up confirmation both by inner and outer survey HIA to distribute an Audit Manual for overseeing Internal Audit and guarantee that there is proper supervision all through all review assignments

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Treasury Definition of IA INTERNAL AUDIT IS AN INDEPENDENT AND OBJECTIVE APPRAISAL SERVICE WITHIN AN Organization: Internal review principally gives a free and target conclusion to the Accounting Officer on hazard administration, control and administration, by measuring and assessing their adequacy in accomplishing the association's concurred destinations .

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also, inside review's discoveries and suggestions are gainful to line administration in the evaluated zones. Chance administration, control and administration involve the arrangements, techniques and operations built up to guarantee the accomplishment of goals, the proper appraisal of hazard, the dependability of interior and outer announcing and responsibility forms, consistence with pertinent laws and directions, and consistence with the behavioral and moral norms set for the association.

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Internal review likewise gives a free and target consultancy benefit particularly to help line administration enhance the association's hazard administration, control and administration. The administration applies the expert abilities of inward review through a precise and restrained assessment of the strategies, techniques and operations that administration set up to guarantee the accomplishment of the association's destinations, and through proposals for development. Such consultancy work adds to the supposition which inside review gives on hazard administration, control and administration.

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WHAT IA DOES ACCOMPLISHMENT OF ESTABLISHED GOALS AND OBJECTIVES COMPLIANCE WITH RELEVANT LAWS AND REGULATIONS RELIABILITY AND INTEGRITY OF INFORMATION ECONOMIC, EFFECTIVE AND EFFICIENT USE OF RESOURCES SAFEGUARDING OF ASSETS

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INTERNAL AUDIT DOES NOT ACT AS A POLICEMAN ACT AS A SUBSTITUTE FOR MANAGEMENT AUDIT END OF YEAR FINANCIAL ACCOUNTS HAVE RESPONSIBILITY FOR EXECUTIVE FUNCTIONS INVESTIGATE FRAUD

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Who Are We Here To Serve? The Accounting Officer The Management Board The Audit Committee

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Role of the Audit Committee Appointed by the Board Helps set the "Tone at the Top" Reviews the appraisal and administration of hazard Provides free announcing line with assurance for Internal Audit terms of reference and assets Evaluates Internal Audit Coverage and execution

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Sets needs for Internal Audit Agrees both long haul and yearly arranges Review of year end Corporate Governance explanations made by administration Review of Corporate Risk Assessments Rev

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