Internal Audit BUG 2011
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Transcript of Internal Audit BUG 2011
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Concept &
ApproachCBRMP LGED
Michael A Roy
Management consultant1
Internal Auditof
Beel User Group
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The concept: a peer review
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Internal Audit is an independent appraisal set inprojects M&E system to examine and evaluateparticularly group performance of some coreactivities
1. Finance , Asset, Books & Records Group fund ( Own and Project )
Maintenance/conservation activities
Cash status
Distribution and use of Group/Project fund
Books and Records
2. Capacity building Human
Social
Technical
Institutional
3. Performance rating
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The Purpose
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Support the project administrationand BUG in effective servicedelivery in transparent and
accountable manner
To that end:
Internal Audit provides them, i.e. Project &BUG : analyses of information recommendations and advices
:
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The Scopes
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Internal Audit mainly reviews:
1. The reliability and integrity of the information
2. Compliance with policies, plans, procedures,laws, and rules3. The safeguarding of assets.4. The economical and efficient use of resources
to meet the overall objectives
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1. The reliability and integrity ofinformation
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Financial and operating records are accurate,reliable, timely and complete.
Further on INTEGRITY
Correctness
Completeness/ containing all parts/works/formalities
Soundness/valid reasoning/logical and compliance with the intentionof the work
It is achieved by preventing accidental or deliberate unauthorizedinsertion, modification or destruction of data in books and records.
It is all about: Honesty, Commitment & Fairness a Moral Quality
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2. Compliance with policies, plans,procedures, laws, and regulations.
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Internal auditors are responsible fordetermining whether the process practiced
are adequate and effective and whetherthe activities audited are complying withthe appropriate policy, plans, procedure,laws and rules
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3. The safeguarding of assets
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Internal auditors should review the meansused to safeguard assets from various types
of losses such as those resulting from theft,fire, improper or illegal activities
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4. The economical and efficient use ofresources
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Procedures have been established formeasuring economy and efficiency
Deviations from procedures are identifiedanalyzed, and communicated to thoseresponsible for corrective action
Corrective actions have been taken or not
Underutilized of facilities
Procedures which are not cost justified
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The professional ethics
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The primary focus is to provide excellent serviceto the administrations
Should be committed to the highest degree offairness, integrity, and moral conduct inperformance.
The relationships with the BUG will be
maintained by respect, helpfulness, sharing,patience, and openness.
Although the IA team members are a part of theproject they should be committed to maintain
their independency in defining the scope andobjectives of their investigations
U i l C d f C d t f
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Universal Code of Conduct ofIA
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Principles
GIAS/IIA
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Process of collecting information
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Information should be/have:
sufficientcompleterelevantsound basis for audit
recommendations
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Summary note on findings
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Upon the conclusion of the fieldwork, the auditor willsummarize the audit findings with following focuses:
Statement of Condition (What is?)
Criteria (What should be?) Effect (what impact?)
Cause (Why did it happen?)
Recommendation (What should be done?)
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Steps in closing the audit
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Preparing draft report
DebriefingManagement letter
Final report
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Follow-up
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Internal auditors should check whetherappropriate actions are taken on reported
audit findings
a must...
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Benefit and values of IA(in summary )
Integrity
Transparency
Accountability
Credibility
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Thankswishing a quality work