Bibi Consulting : Where Quality Meets Integrity !

 

 

With us , you enjoy high quality professional services and high level of integrity (not to mention very reasonable fees ) !

 

 

 

 

 

 

Bibi Consulting : Your Trusted Internal Audit Consultants

A combination of the big firms' quality service and  the small firms' fee structure is what you will enjoy when you use our services .Our commitment to you is simple :

If you do not believe that we have added value to your organization, do not pay any fees !
 (only the associated expenses, if any)

 

So act today : call us and let's discuss your internal audit needs !
                                    info@bibiconsulting.net
                                    www.bibiconsulting.net
                                      Skype:bibiconsulting

 

Integrated Assurance : A practice or a wish ?

There has been many calls  over the years to coordinate internal audit ,risk management, compliance and other assurance work and align it with the strategic objectives of the organization ,not only to simplify reporting ,but also to streamline oversight.

Integrated assurance is also referred to as "coordinated" or "combined " assurance . Regardless of the name, those who support the notion of integrated assurance believe that it provides the following benefits:

- Elimination of duplication of efforts
- Cost Synergies
- Focus on important risks
- Better and simplified reporting to the Board
- Maximize control efficiencies

But, what is really meant by integrated assurance ? In researching the web for definitions , I kept finding references to the King III guidance in South Africa ,which provides the following definition :

 

"Integrating and aligning assurance processes in a company to maximize risk and governance oversight and control efficiencies, and optimize overall assurance to the audit and risk committee, considering the company’s risk appetite."

 

I have not seen any other source of definition !

 

Some people believe that Internal Audit should lead the integrated assurance . They base this on the requirement of IPPF standard 2050 which stipulates:

 

"The chief audit executive should share information and coordinate activities with other internal
and external providers of assurance and consulting services to ensure proper coverage and
minimize duplication of efforts."

 

Have your company integrated assurance activities ,or have you heard of any other company that did so ? How was it done and what role did internal audit play?

 

Please share your experience and thoughts !

 

 

IPPF Proposed Changes : A Real Change or A Cosmetic One ?

The IIA has released an exposure draft outlining proposed enhancements to the International Professional Practices Framework (IPPF). The last significant changes to the IPPF were in 2007.

Below is a summary of the proposed changes:

 



A quick review of the changes may indicate  it is  cosmetic in nature and did not add any meaningful change. In order to comment objectively on the proposed changes ,we have to study it in details .

Internal Auditors like to call themselves agents of change ! So did they manage to apply this to their own practices ? Only time will tell .

CAE : The CFO could be your best friend or worst enemy ,you decide !

Although I discourage any reporting by the CAE to the CFO,  be it administrative or functional, I strongly encourage a close healthy professional relationship between both parties . Having said that, I am not suggesting that the CAE compromises his/her independence in any form or shape.

The CFO could be the best friend and strong supporter of internal audit or its worst enemy.This ,in my opinion is very much influenced by the actions of the CAE. This statement does not come from the vacuum ,but from my observations over the years as an independent consultant .

Here is the argument : 

- The CFO is the second most influential person after the CEO ( and in some cases, the first) and an important decision maker within the organization.
- The CFO is the owner of many business processes and risks .
- The CFO possesses a wealth of information about the business and the organization's strategic objectives.
- The CFO can significantly influence how internal audit is perceived in the organization .

The big question is : How can the CAE achieve this ?

- First perquisite is that the CAE possesses the personality and the mind set of a leader ! He/she should  act and deal with the CFO and other management members as an equal partner and earn their respect!
- The CAE should convince the CFO that he/she can actually add value and act as a trusted adviser.Actions speak  louder than words,so this has to be proven in practice !
- Needless to say that the CAE should possess top technical and soft skills to enable him /her to play the above mentioned role .
- I am a fan of direct and candid discussions .The CAE should arrange to meet with the CFO regularly to discuss a whole host of topics including what is going on within the organization, management's plans and directions,regulatory issue ,accounting issues, internal audit trends and updates and above all risks an risk management issues.

In my long consulting career,I have seen CAE's who try to ignore the CFO or submit to him/her .Both approaches do not work .There is no substitute to a healthy relationship based on mutual respect.

Please share your experience with your CFO !  

Do Internal Auditors Need a Slogan ?

Almost two years ago ,a member of my LinkedIn group "Internal Audit & Risk Management Consultants " posted a discussion asking members of the group to think about a slogan for the Internal Audit Department . I though the discussion was ended a long time ago , but when all of a sudden many new comments started to pop up ,I though to revisit the issue . I thought the timing is good since we are celebrating our awareness month !

 

At that time, my comment on the discussion was :

 

"Actions speak louder than words !! Do a great job for your organization and people will come up with a slogan for you ! "

 

I still stand by this belief .However ,many other members did volunteer slogans such as :

 

- Our Contribution is known by the Value Addition of our Services to the Company

- We are trusted partners driving the change agenda in the Group

- We Guarantee Quality

- We help to achieve Corporate Governance

- Success together

 

Do you think we need a slogan ? If so, what would you suggest .

Can Internal Auditors Rely on the Work of External Auditors ?

My LinkedIn connection and a member of my group " Internal Audit & Risk Management Consultants ", Mostapha Osman has written an article in the Banker Middle East magazine (page 36 of the March 2014 issue) raising an interesting issue : "Internal Audit Reliance on External Audit in the Middle East " The article discusses whether internal auditors can rely on the work of external auditors and use it as part of their internal audit work. The issue here ,obviously, relates to the work  external auditors perform in the course of their normal external audit procedures and does not refer to any internal audit outsourcing /co - sourcing activities. he concluded the article by saying :

 "We truly believe that Internal Audit function should not rely on external auditors "

I encourage you to read the article ( to which I have provided  link above) to get an understanding on  how he  has arrived at this conclusion. Please share your experience and thoughts .

P.S : I had the pleasure of meeting with Mostapha face to face ,and had a fruitful discussion about our profession !