Best Practices in Internal Audit - Iyad Mourtada

!"#$%&'()*)"#%%+,%%

-,$"',(.%/01+$%

-2(1%340'$(1(%%

Online Conference

Aligning the IA Function with Strategic Objectives

Risks

Fraud Risks

According to the ACFE’s 2010 “Report to the Nations,”

5% of global GDP, or nearly $3 trillion, was lost to fraud in 2009

Information security remains a critical risk

Understand New Risks

Governance, risk management and compliance (GRC)

“A system of people, processes and technology that enables an organization to understand and prioritize stakeholder expectations; set business objectives that are congruent with values and risks; achieve objectives while optimizing risk profile and protecting value; operate within legal, contractual, internal, social and ethical boundaries; provide relevant, reliable and timely information to appropriate stakeholders; and enable the measurement of the performance and effectiveness of the system.”

Norman Marks

Governance, risk management and compliance (GRC)

Optimizing Internal Audit

•  Update the Internal Audit Charter as needed

•  Ensure that the Internal Audit function is

independent from the Top Management

•  Conduct quality assurance assessment for the

internal audit function

•  Risk assessment should be qualitative, participative,

real-time, and strategically focused

Considerations when outsourcing IA

!  Improve the quality of the internal audit function !  Reduce the cost of the internal audit function

Three options should be evaluated: •  Is the in-house function fit for purpose? •  Is outsourcing a value-adding solution? •  Is a better option to cosource where skills can be

improved or cost saving made?

Understanding the risks of outsourcing

" Does the provider have sufficient knowledge of the functions and departments of the organization?

" Will internal Audit staff be embedded within the organization?

" Will the internal audit provider be able to sustain an effective internal audit over the lifetime of the contract?

" Is there a conflict of interest?

http://cebviews.com, Kate Guerra

Looking Ahead

http://cebviews.com, Kate Guerra

L O G O

Questions

!"#$%&'()*+!),!)-.#(%