Free High Level Review of Internal Audit Departments !

Bibi Consulting is offering free high level review of internal audit departments in Ontario ,Canada and selected cities in the Middle East .

 

The review will focus on the following :

 

- Authority,organization and Independence.

- Staffing

- Audit process

- Quality assurance

 

The review is not designed to audit the company's operations in any form,or is designed to detect fraud or weaknesses in internal controls .It is not a substitute for the external assessment as stipulated by standard 1312 of the International Standards for  the  Professional Practice for internal Auditing,but it may help preparing for such assessment.

 

Upon the completion of the review, the company shall receive a brief report summarizing the work performed and recommendations for major areas of improvements ,if any.

 

To take advantage of this offer ,contact us at info@bibiconsulting.com .

 

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2013 Internal Audit Focus - Why compliance is still a high priority ?

According to the IIA Audit Executive Center's Fall 2012 Pulse of the Profession Study , the CAE's identified their top risk coverage priorities for 2013 as follows:

24%  Operational
14%  Compliance
13%  General Financial
12%  SOX Compliance
12%  IT
5%   Risk Management Effectiveness
4%   Fraud
4%   Strategic Business Risk
12%  Other

How do your priorities compare to the above ?

Would you feel comfortable spending 14% of your resources on compliance and only 5% on risk management effectiveness and 4% on strategic business risks?Is compliance risk really that important ?

Are internal auditors still spending significant time on SOX compliance ?

Please share your thoughts .

Is IA success influenced by Board & Management desire?‎

The traditional perception indicates that “Internal Audit will be what senior management wants it to be “. I was reminded of this while reading the Framework for Excellence Article in the Ia magazine's February issue. In particular, this statement caught my attention:

“Ultimately, an audit department can only be as advanced as the board and senior management want it to be”

Do you agree with this statement?

More importantly, do you accept this as being the normal way of doing business?
Do you feel that Internal Auditors can influence how the Board & Management perceive their work?

Can you share your experience and share your success story?

picture credit:http://gearingforsuccess.ca/gearing-for-success/

Do you have what it takes to be a mentor?

Being a mentor provides a great deal of job satisfaction and makes jobs more enjoyable and productive! However, not everyone has got what it takes to be a mentor.
To be a mentor, one should be:
- a good listener
- a leader
- patient
- willing to share knowledge
- experienced
- committed
- and above all, has the right mindset

Why Become a mentor?

An article published by the ExecutiveBrief lists the following argument :

"A great number of mentors claim that by being a mentor, one earns the respect and recognition of peers. Mentoring enhances authority, thus firming up one’s position within the organizational structure. The mentor likewise is given the opportunity or the chance to learn from the mentee."
While I agree with the above statement, I do not support the notion that mentoring should be used for enhancing the mentor's position. This should not be an objective by itself but can be a byproduct of the mentoring process.

I have come across a useful publication by Human Resources and  Skills Development Canada ( HRSDC), which provides good guidance about mentoring. I would like to share it with you. It can be accessed here.

Have you thought about mentoring?
If you already have, was it rewarding as promised?

These are my thoughts, please share yours!

picture credit:http://www.trudeaufoundation.ca

Differences and Similarities Between Fraud and Corruption

Fraud and corruption are two words that we hear too often. Both are on the rise worldwide, and their methods are evolving to adapt to the development of technology. Who among us did not receive at least one fraudulent email during the last month?

Is corruption a form of fraud? Or are these two different things? A review of the definition of the terms may offer an answer :

A handbook published by the World Bank Group (Fraud and Corruption Awareness Handbook)  Defines fraud and corruption as follows:

“A fraudulent practice is any act or omission, including a misrepresentation, that knowingly or

Recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid
an obligation.”

“A corrupt practice is the offering, giving, receiving or soliciting, directly or indirectly, of anything of

value to influence improperly the actions of another party.”

An IIA Chicago Chapter presentation (Auditing for Corruption in Emerging Markets) provides the following explanation of the two terms:

Fraud:

Deriving undue benefit by bypassing some controls or bending some rules. Fraud Schemes are used to commit corrupt activities:

• Asset Misappropriation

• Financial statement irregularities
• Corruption

Corruption:

Takes place in the form of providing illicit benefits; harder to find; narrower scope than fraud.

• Bribery

• Embezzlement
• Extortion
• Influence Peddling
• Unlawful gratuity favor or commission
• Nepotism
• Illegal Political contribution

 The Business dictionary differentiates between these two terms as follows:

 Fraud is misrepresenting yourself or something as something you or it is not. For example, if you use a fake ID, you’re committing fraud by misrepresenting yourself as someone else.

Corruption is a broad term that can be applied to fraud, as well as other dishonest acts such as bribery, extortion, or embezzlement.
The two can be used in a wide array of instances but can apply specifically to business. Corporate leaders are often prosecuted for various fraudulent and corrupt acts, as well as political leaders.

Have you reached a conclusion yet? One thing we can, for sure, agree on: Fraud and Corruption are very bad practices and should be prevented and detected at an early stage.

Photo credit:Shutterstock

How to tarnish your company's reputation in 30 seconds?‎

Yes it’s possible; it only takes an inappropriate tweet or a status update on a social media web-page such as Facebook , LinkedIn  or a short video on  You Tube to cause a major damage to a company’s hard earned reputation or brand .This could happen intentionally or as a result of ignorance or oversight.  While the company may not have control over the intentional acts, it can do something to eliminate, or at least minimize, the actions caused by ignorance or oversight. Here is what I think can be done:

• It starts with recognizing the power & risks of social media .If management does not believe in it, then such management is part of the problem, not part of the solution.
• Raise awareness at all levels in the company about the benefits and risks associated with social media.
• Conduct training to educate all employees on how to deal with social media at work or in their private life.
• Set a clear and concise social media policy and ensure that it is distributed to and understood by all employees.
• Include social media risks in the company’s risk management plan.
• Include social media behavior in the company’s Code of Ethics.
• Perform Social Media audits on continues basis.

Can you suggest more actions or discuss your company's experience with this issue ?

‎ Shall we promote the CAE to CAO?‎

The Head of the Internal Audit department is usually referred to as the Chief Audit Executives (CAE). It seems this is a generally accepted title and is being used worldwide. But, do you think that it undermines the position compared to the other “C” suite positions? For example, we don’t call the top financial person Chief Financial Executive ( CFE), we call him/her Chief Financial Officer ( CFO). The same applies to other executive positions  such as CEO, CIO , CRO...

If we really want a seat at the table, shall we start by having the right title!! Why not start by changing CAE to CAO (Chief Audit Officer).

I am interested in your views and I hope that it goes beyond “ this is a formality “ and “ substance over form” cliche!