Risk Based Internal Auditing - Steps Forward?

Francis E. Madojemu

How Audit Inspectors & Auditors Care About the

End-User?

"Duty makes us do things well, but love makes u s d o t h em beautifully."  — Zig Ziglar

What do you think the staff and even the

company leaders think

of you as auditors?

When the feedback from the staff and personnel is shared with the

auditors, their reaction was:

“Well most of them are not honest and don't follow the protocol?”

In other words they must be stealing or doing something wrong.

What should be our destination

Increase efficiency

& prevent breakdown

What should be our destination

The role of the external auditor in financial services regulation and supervision is one which could be harnessed in such a way as to prevent further corporate scandals such as Enron.

This is possible where necessary safeguards are in place to ensure that the external auditor's integrity, objectivity and independence are not compromised.

It's more than submitting an audit report

You are more than "Bean counters"

Proffer solutions but you can't if you aren't human

FIND THE FEELING

Story 1 - Attila the Accountant

Story - Attila the Accountant

Attila was meticulous about following the rules, to a fault. If you submitted an expense report to his team and left off a single detail—a date, a subtotal—the accountants would bounce the report right back at you rather than simply filling in the detail themselves.

Because of this perceived pettiness, Attila was “pretty much hated throughout the organization,”

Story - Attila the Accountant

Frustrated, Sitkin and Healy asked Attila to join them on a road trip. For the first time, Attila got a gut-check about the harm he was causing with his nitpicking. He came back to the office a transformed man. Mind you, he was still Attila. He was still authoritarian, and he still yelled.

Story - Attila the Accountant

But he changed what he was yelling about. “Before, he’d yell at his staff, ‘Why did you give me this form when it’s got something missing?!’” said Sitkin.

“Afterwards, he switched to, ‘Don’t you realize what happens when we don’t get this check out on time?! People have to make payroll!’”

Story - Attila the Accountant

Most of us; Have never seen things from "audited's" point of view

See the human aspect and turn around time or customer

satisfaction Would you return Dangote's

cheque, experience the emotions

Robert M. Tobias, Man Who Sued Richard Nixon

Prior to his work at American University, he served thirty-one years with the National Treasury Employees Union and as its president in 1983–99.

Then had no one to fight

- To what end was I fighting against.

Now i have to fight for the good of others 

Robert M. Tobias, Man Who Sued Richard Nixon

He met with local union presidents and said, “It’s not enough to be reactive, to sit behind your desk and wait for management to screw up, which they will, and beat the s---out of them.

You have to be more than an insurance policy. You have to represent the ninety-five percent who never use any union services.”

Best Teacher AwardI don't teach mathematics

What do you teach

I teach kids Mathematics

Best Auditor AwardThis award is presented to an internal auditor who has made a significant contribution to the internal audit profession and to the credit union industry.

The recipient of this award has demonstrated personal and professional leadership in serving the industry, profession, and community.

Luke 16:1-9 (NKJV) The Parable of the Unjust Steward

Luke 16:9 (NKJV)

9 “And I say to you, make friends for yourselves by unrighteous mammon, that when you fail, they may receive you into an everlasting home

Make friends hmmmNot in an illegal way like the steward, the wicked know how to cheat to succeed. The good must use good to succeed also

Do not use it so that it shall not avail you anything hereafter;

Luke 16:1-2

1 He also said to His disciples: “There was a certain rich man who had a steward, and an accusation was brought to him that this man was wasting his goods. 2 So he called him and said to him, ‘What is this I hear about you? Give an account of your stewardship, for you can no longer be steward.’

Luke 16:3-4 (NKJV)

3 “Then the steward said within himself, ‘What shall I do? For my master is taking the stewardship away from me. I cannot dig; I am ashamed to beg. 4 I have resolved what to do, that when I am put out of the stewardship, they may receive me into their houses.’

Luke 16:5-6 (NKJV)

5 “So he called every one of his master's debtors to him, and said to the first, ‘How much do you owe my master?’ 6 And he said, ‘A hundred measures of oil.’ So he said to him, ‘Take your bill, and sit down quickly and write fifty.’

Luke 16:7-8 (NKJV)

7 Then he said to another, ‘And how much do you owe?’ So he said, ‘A hundred measures of wheat.’ And he said to him, ‘Take your bill, and write eighty.’ 8 So the master commended the unjust steward because he had dealt shrewdly. For the sons of this world are more shrewd in their generation than the sons of light.

Luke 16:8 (AMP)

8 And [his] master praised the dishonest (unjust) manager for actingshrewdly andprudently; for the sons of this age are shrewder and more prudent and wiser in [relation to] their own generation [to their own age andkind] than are the sons of light.

Syriac version: became he had done wisely for himself:

the wit, and not the goodness of the man is commended; which, in the language and sense of the Jews, may be thus expressed F16:

``because a man, (wmuel hbwj hvwe) , "does good" for himself with "mammon" which is not his own.''

The phrase seems to answer to (twdlwt) , "generations" used in ( Genesis 6:9 ) ( Genesis 37:2 ) "these are the generations of Noah" and "the generations of Jacob";

by which are meant, not the genealogies of them, but their affairs; what befell them in life: as so the Jewish writers explain the phrase by (twrwqh) , "the things which happened" unto them in this world, in the course of their pilgrimage:

or they are wise, (eiv thn genean thn eautwn) , "for their own generation":

Wiser in their generation?

"for their own generation": for the temporal good of their posterity, than saints are for the spiritual good of theirs:

or they are wiser for the time that is to come in this life, than good men are concerning themselves for the time to come in the other world:

Wiser in their generation?

or they are wiser, and more prudent in disposing of their worldly substance for their own secular good, and that of their offspring,

Wiser in their generation?

than men of spiritual light and knowledge are, in disposing of their worldly substance for the glory of God, the interest of Christ, the honour of religion, their own spiritual good, and that of their posterity.

Wiser in their generation?

Notice the conclusion, it's a tool for eternity

Luke 16:9 (NKJV)

9 “And I say to you, make friends for yourselves by unrighteous mammon, that when you fail, they may receive you into an everlasting home.