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Magyarországi

Szervezete

The Institute of

Internal Auditors

Hungary

Founded: 1995Membership: 140 Board: Dr. Peter Galambos – President

János Ivanyos - managingDr. Miklós BuxbaumDr. József RoózTamás Miskolczi

Sections: industry-commerce-service (Mr. Buxbaum) government (Mrs. Németh)local government (Mr. Miskolczi)finance (Mrs. Gulyás)IT (Mr. Ivanyos)training (Mr. Roóz)

Belső Ellenőrök

Magyarországi

Szervezete

The Institute of

Internal Auditors

Hungary

Mission Statement

The mission of IIA Hungary is to be the primary professional association dedicated to the promotion and development of the practice of internal auditing in Hungary.

Belső Ellenőrök

Magyarországi

Szervezete

The Institute of

Internal Auditors

Hungary

IIA Hungary is committed to:

• Providing accessibility to the comprehensive professional development activities, standards for the practice of internal auditing, and certification based on the cooperation with the international network of the IIA and ECIIA,

• Disseminating and promoting to its members and to the Hungarian public, knowledge and information concerning internal auditing, including internal control and related subjects.

• Establishing meetings in Hungary in order to educate members andothers as to the practice of internal auditing.

• Bringing together internal auditors from all sectors to share information and experiences in internal auditing and promoting education in the field of internal auditing.

Belső Ellenőrök

Magyarországi

Szervezete

The Institute of

Internal Auditors

Hungary

Belső Ellenőrök

Magyarországi

Szervezete

The Institute of

Internal Auditors

Hungary

Activities for our membership:

General meetings

Professional conferences

Seminars (Comprehensive trainings, RM, IT tools)

CIA preparatory trainings

Professional Recognition Credit for CIA Part IV

Agreement with the Finance Ministry

Belső Ellenőrök

Magyarországi

Szervezete

The Institute of

Internal Auditors

Hungary

Actions for auditing in CEE:

Personal meetings in international conferences

Supporting each other in solving actual problems via e-mails

Offer CIA exam preparatory trainings in Budapest

Attend ECIIA research project

Belső Ellenőrök

Magyarországi

Szervezete

The Institute of

Internal Auditors

Hungary

Government Section

Date of foundation: June 7, 2006

Foundation members:

1. Mr. Csaba Bartos (CIA), European Court of Auditors2. Mrs. Ágnes Dobó (CIA), Ministry of Finance3. Mr. Tibor Fábián, Agricultural and Rural Development Agency4. Mr. Péter Horváth (CIA), ESF Hungary 5. Mr. Péter Janza, Government Control Office6. Mrs. Edit Németh, Ministry of Finance / NAO Office – section leader7. Mrs. Zsuzsanna Sötét, Government Control Office8. Mr. Zoltán Urbán, Road Directorate

Belső Ellenőrök

Magyarországi

Szervezete

The Institute of

Internal Auditors

Hungary

Objectives:

• Professional lobby;• Improve communication within internal auditors of the public

sector;• Carrier support, development of professional skills;• Exchange of experiences, provide training opportunities, sharing of

knowledge (e.g. organizing professional workshops);• Increase the possibilities of gathering CIA credit points (CPE);• Take part of elaboration of methodologies or guidelines and collect

best practices;• Improve quality of the internal auditing in the public sector;• Recruiting new members from the public sector.

Belső Ellenőrök

Magyarországi

Szervezete

The Institute of

Internal Auditors

Hungary

Financial Section

History

Since establishing of the IIA Hungary more than ten years

Target for the bank internal auditors

Trainings, courses

Professional discussions

Conferences

– at low cost with Financial Authority's supporting

Belső Ellenőrök

Magyarországi

Szervezete

The Institute of

Internal Auditors

Hungary

New relation– together with Economic Society’s Audit Section

Professional presentationsClub daysConferences

4-6 programs/yearfree of chargeparticipation of public sector about 25 %

The next presentation tomorrow:„Internal Financial Control Assessment” (Implementing Corporate Governance Principles by using COSO based internal control models)

Belső Ellenőrök

Magyarországi

Szervezete

The Institute of

Internal Auditors

Hungary

Internal Financial Control Assessment

Based on COSO Components

Control Environment

Integrity and Ethical Values

Board of Directors

Management’s Philosophy

Organizational Structure

Financial Reporting Competencies

Authority and Responsibility

Human Resources

Risk Assessment

Financial Reporting Objectives

Financial Reporting Risks

Fraud Risk

Control Activities

Integration with Risk Assessment

Selection and Development

Policies and Procedures

Information Technology

Information and Communication

Financial Reporting Information

Internal Control Information

Internal Communication

External Communication

Monitoring

Ongoing and Separate Evaluations

Reporting Deficiencies

COSO

COMPLIANCE

REPORTING

OPERATIONS

STRATEGIC

CO

SO

CO

SO

ER

M

Belső Ellenőrök

Magyarországi

Szervezete

The Institute of

Internal Auditors

Hungary

CIA exam preparation coursebackground:

• Introduced in second half of 2005

• Offered in both Hungarian & English

• 3 day course

• Led by Hungarian CIA’s

• Positioned as certification of excellence

• Small-sized classes

Belső Ellenőrök

Magyarországi

Szervezete

The Institute of

Internal Auditors

Hungary

CIA exam preparation course experiences:

• Small classes and practical (exam oriented) approach is effective preparation method

• Attracted new pool of CIA candidates

• Attendees are from „regulated” markets – financial sector, listed companies

• Public sector participation is currently limited

Belső Ellenőrök

Magyarországi

Szervezete

The Institute of

Internal Auditors

Hungary

CIA exams in Hungary

• Actually 35 CIAs in Hungary• From May 2004 it is possible to take the exam in

Hungarian (Part I, II, III)• Exam site is unchanged since 2004• Candidates from neighbouring countries• Growing number of candidates sitting for the exam

(highest number in 2004 due to the training organised by the Ministry of Finance)

• Exam results are getting better

Belső Ellenőrök

Magyarországi

Szervezete

The Institute of

Internal Auditors

Hungary

Number of CIAs in Hungary

54

23 3 3

1

6

1

7

21

28

35

11

9

14

17

20

27

0

5

10

15

20

25

30

35

until end of

2001

May 2002 Nov 2002 May 2003 Nov 2003 May 2004 Nov 2004 May 2005 Nov 2005 May 2006

0

5

10

15

20

25

30

35

New Hungarian CIAs Cumulated number of CIAs

I II III IV I II III IV I II III IV I II III IV I II III IV

74

60

7 6

30

23 23

8

18

10 10

5

28

22

54

28

16

21

10

16

12

32

9 97

610

36

3

1210

2 3

118

129

0

10

20

30

40

50

60

70

80

Candidates Passed Candidates

Belső Ellenőrök

Magyarországi

Szervezete

The Institute of

Internal Auditors

Hungary

Success at exams

May 2004 Nov 2004 May 2005Nov 2005

May 2006

22%

20%

43%

33%

30%

39%30%

75% 56% 30% 60%

60%

43%

45%

40%

75%

39%

50%

57%90%

Belső Ellenőrök

Magyarországi

Szervezete

The Institute of

Internal Auditors

Hungary

Web site: www.iia.hu

E-mail address: bemsz@iia.hu

Belső Ellenőrök

Magyarországi

Szervezete

The Institute of

Internal Auditors

Hungary