FCPA Blog Strategy Session What IA... · Title: FCPA Blog Strategy Session Author: DS013825 Created...
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WHAT INTERNAL AUDIT NEEDS TO DO TO EARN ITS KEEP DOUGLAS J ANDERSON, CIA, CRMA, CPA, CMA February 12, 2013
Transcript of FCPA Blog Strategy Session What IA... · Title: FCPA Blog Strategy Session Author: DS013825 Created...
WHAT INTERNAL AUDIT NEEDS TO DO TO EARN ITS KEEP
DOUGLAS J ANDERSON, CIA, CRMA, CPA, CMA
February 12, 2013
DEFINITION OF INTERNAL AUDITING
Internal auditing is an independent, objective
assurance and consulting activity designed
to add value and improve an organization’s
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.
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D ANDERSON ABRIDGED DEFINITION
Internal auditing is an independent, objective
assurance and advisory activity that helps
an organization accomplish its objectives by
improving governance, risk management,
and internal control
Independence & objectivity
Competency and expertise
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ORGANIZATIONAL GOVERNANCE
• Investors/taxpayers – Management – Public
• Board represents investors/taxpayers
• Regulators represent public
• Management represents…
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HOW DOES THE BOARD DO THEIR JOB?
• Why do they need Internal Audit?
• What unique role do we have?
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INDEPENDENCE
The freedom from conditions that
threaten the ability of the internal audit
activity to carry out internal audit
responsibilities in an unbiased manner
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International Professional
Practices Framework
(IPPF) Glossary
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IPPF STANDARDS AND GUIDANCE
There are a number of standards,
interpretations and other guidance on
independence and objectivity
• Structure
• State of mind
• Operating processes
• Perception
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THE MODERN INTERNAL AUDITOR
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WHAT SHOULD YOU SEE IN YOURSELF?
1. Focus on your boss
2. Understanding of the business and risk
3. Challenging, sincere, positive
4. Clear positions and principles
5. Willingness to challenge
6. Evidence of your independence
7. Balance
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OUR FOCUS
“Corporate scandals of recent years have
clearly shown that the plethora of laws of the
past century have not eliminated the less
savory side of human behavior. Rules
cannot substitute for character.”
Alan Greenspan
U.S. Federal Reserve Chairman
Chicago Tribune, 17 April 2004
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WWW.THEIIA.ORG/CAE
IN THE NEWS…
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Bhopal Gas Survivors Demand Action Against US Firm Mangalorean.com 17 February 2007
2/12/2013
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Fortune Magazine
June 20, 2008
2/12/2013
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UNWELCOME BEHAVIORS
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E is for entitlement
N is for nepotism
R is for robbery
O is for over-inflated egos
N is for negligence
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CLOSING THOUGHTS
• We have a critical role to fill in
organizational governance
• No one else can fill this role
• Independence is key
• Focus on what your boss needs you for
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uestions ???
