Perfect Internal Auditor

7/29/2019 Perfect Internal Auditor

1/13

1) The perfect auditor, the one who delivered/ make efforts for internal controls system tobe embed in the operations of the company and form part of its culture.

2) Worked under the code of ethics and comply with fundamental ethical principlesthrough out the year.

Chief

1) Norman's Remark: Results of a computerized survey indicate that perfect internalauditors complete the average audit in 15 minutes, the difficult in 30 minutes.Anwar's Remark: This computer survey significantly lacks realistic amount of details andassumptions,,,,,,I mean to say that there are a number of things which an internal auditorhas to consider before he can assure himself that his internal audit is complete and riskcovered,,,,,the process includes such as:a) Project Planning: which includes effective resource planning, scope and objectives toachieve, defintion of audit universe, study and develop pre- audit information of the

auditable entity,b) Prcoess understanding: which includes research about benchmarks and leadingpractices, proper documentation of all research documents,c) Process risk assessment and Audit Program: which includes the development of riskregister capturing risk, risk group, existing controls, process gaps, consequence, impact,likelihood) and finally Audit Program,d) Audit execution and work proper documentation: which includes the efficieny andeffectivness of project execution, risk register and its related internal controls providesinformation on the internal controls that should be tested, this testing is based on theassumption that the internal controls are operating effectively, which directly impacts thecreation of the internal audit program. If an internal control is known by the client to not

be operating effectively or if it has been determined and agreed to by the client that acontrol is not designed properly, then agreement must be reached with the client onwhether it is appropriate to perform testing of those controls. In many instances, it maynot be beneficial to the client to test internal controls if they are known to havesubstantial issues in either design or effectiveness.e) Exit interview, preparation of draft and final reportsf) follow up on previous issues and its tracking and etc,

2) Norman's Remark: They complete 15 to 30 audits a day, review 10 to 15 new orrevised controls, type all their audit programs, produce an annual audit budget thatanticipates all company growth and allows for all changes. They maintain a perfect set ofworking papers that the external auditors use without question. They writecomprehensive audit reports that read like a fine novel and are understood by all whoread them. They are people with a velvet touch, the perfect answer, diplomat parexcellence.Anwar's Remark: I have explained the process in detail as above, if the perfect internalauditor completes 15 to 30 audits a day as remarked by Norman ,,,then I must say this istotally and humanly impossible unless the auditor is some angel, moreover if I assume


2/13

that Norman definiion of perfect auditor is correct then I need to review his assumptionsfirst before I can accept his definition of perfect internal auditor and only then I can trulycomment on the perfect internal auditor in 2012 and his role,,,,I HOPE I HAVE NOT OFFENDED ANY ONE IF YES I TRULY APOLOGIZE,,,

An auditor besides being qualified and experienced, should be a person who:

*Has a pleasant personality

*Is unbiased

*Does not act superior

*Does not throw his / her weight around

*Is patient and listens more and talks less.

*Has a keen nose, ear and eye for deviations and out-of-the-ordinary

*Has communication skills

*Can prepare good reports

*Is fearless and independent but not aggressive

*Takes up the job seriously and with dedication

*Is ethical and honest to the core

*has sound IS and IT knowledge


3/13

is one who safeguards and enhances the legitimate interest of his organization frominternal and external threats/ risks by adhering to internal audit professional standards,practices and code of ethics.


4/13

I personally think that a Perfect Internal Auditor executes Audits/AssignmentsEffectively, Efficiently and Timely in regard to Complexity / Circumstances of eachParticular area under consideration. An audit may take 15 minutes or may take 15 days.And Internal Auditor Must be capable to move Multi Dimensionally


5/13

First of all let me appreciate the initiative and the undergoing process wherebyprofessionals from internal audit are getting the chance to communicate and share theirvaluable views on a given topic. I would like to add to the flow as below:Perfect InternalAuditor, in my opinion, is one Who understands the overall organizationaldirection, its strategic plan, underlying objectives and established business processes to

achieve those objectives; Who better understands and evaluates the adequacy andeffectiveness of risk management system, internal control systems and governanceprocesses; Who has regard to the highest standards of professional practices andcode of ethics; Who adds value to the business by helping the management improverisk management, internal controls and governance processes; Who, in addition tohis/her assurance role, acts as consultant and business partner yet keeping intact his/herobjectivity, independence and integrity; Who plans, executes, documents, reportsand follows up his/her project in conformity with relevant standards for professionalpractices and other guiding principles & framework and with thorough professionalism &due competence leaving the management with no choice except for believing in thetransparency of the audit process and the relevance and value of the audit product


6/13

After exchange of quite a few emails it will be safe to conclude there is no exhaustivedefinition of "Perfect Internal Auditor" and I believe we have enough experience amongourselves to elaborate it to no ends.

Its largely about sticking to the basics we have learned through our studies and

profession, applying our professional knowledge with integrity objectivity andcompetence.


7/13

In my opinion it is very important for the perfect auditor to regard himself and cultivatean image as an "enabler" rather than a policeman. We must help management developsolutions to practical problems while remaining within the confines of GRC .Best regards

Naveed A. Hashmi


8/13

My additional views are: Seeks out and is open to new and challenging opportunities to grow; is curious steps out of comfort zone, has sense of adventure, willing to take risks, jumps in and triesout new things.

Behaves in accord with high standards; strong sense of morality relevant toorganization. Is even-tempered, treats others well even under stress. Seeks feedback and acts on it.I am more focused on the personal side of an internal auditor.


9/13

I have the following views:

Should not only clearly understands the company's overall objectives but is also in syncwith it.

Should clearly understands the company buiness and facilitates it by ensuring propercontrols are in place from risk managment perspective.Should be clearly able to evaluate the cost of control vs risk before suggesting any newcontrol or suggesting some change in existing control. Controls should not only be fromthe prespective likes the one "good to have".Should support the new initiatives and business diversification by ensuring propercontrols are in built from risk mangment perspetive.Should have good knowlede of overall IT, SDLC, IT assets & their life cycle and ITgovernance. Should be able to relate how IT helps and can help in acheiving overallbusiness goals.

I hope the above makes some sense. Please don't hesitate to contact me should furhterdelibration is required.Regards,


10/13

agree with the characteristics registered by Brother Shahid.

I think, two additional vital points shall also be included, are as follows:

1) The perfect auditor, the one who delivered/ make efforts for internal controls system to

be embed in the operations of the company and form part of its culture.

2) Worked under the code of ethics and comply with fundamental ethical principlesthrough out the year.


11/13

Mr. Shahid Masaud of Tapal Tea (Pvt.) Limited has put down his views in the followingemail. I would welcome more views and comments, keeping in view the state of theprofession in Pakistan.Thanks and regards,


12/13

How do you describe "the perfect auditor"? Norman Marks shares one of his favoritedescriptions in a new blog post. Excerpts from the blog are reproduced below:The perfect internal auditorResults of a computerized survey indicate that perfect internal auditors complete the

average audit in 15 minutes, the difficult in 30 minutes.They discover and disclose all weaknesses in the controls, but never upset anyone.They make $60 a week [which tells you how old this is], drive nice cars, wear goodclothes, and contribute $50 a week to various company functions, birthday presents,retirement presents, et cetera.Perfect internal auditors smile all the time with a straight face because they have a nicesense of humor that keeps them seriously dedicated to their work.

They complete 15 to 30 audits a day, review 10 to 15 new or revised controls, type alltheir audit programs, produce an annual audit budget that anticipates all company growthand allows for all changes. They maintain a perfect set of working papers that theexternal auditors use without question. They write comprehensive audit reports that readlike a fine novel and are understood by all who read them. They are people with a velvettouch, the perfect answer, diplomat par excellence.They do all their audit work in the auditees' work area and are always in their offriceswhen needed.How has this changed? How would you describe the perfect internal auditor in 2012,perhaps allowing improved efficiency through the use of technology? Please share yourthoughts by replying to this email. Top ten responses would be compiled shared with themembers.


13/13

An internal auditor should be an internal auditor by heart i.e. its not just a job its a way tolive a better life. Friends and Family can benefit as much if not more from our abilities tolisten, comprehend and suggest a better way forward. Every aspect of life whethermarriage, faith, business etc. can be improved via the techniques we acquire in thisprofession. The Last Prophet (PBUH) is my role model in this areas as well. I hope to

write in detail about this topic soon.

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Perfect Internal Auditor