Internal Auditors are ‘the gatekeepers of good corporate governance’

Workshop participants told…


Minister of Finance, Dr Ashni Singh, addressing the gathering at the IIA workshop.
FINANCE Minister, Dr Ashni Singh, yesterday underscored the importance of the internal audit profession in improving the national competitiveness of Guyana.

While highlighting that many view internal audit as a minor bureaucratic function, in a world economy that has been rocked by the recent and still unwinding global financial crisis, the Minister of Finance stated that internal audit takes on an even greater role.

Its use points to sound management, and will lead to competitiveness, Dr Singh told participants at a well-attended workshop at the Pegasus Hotel in Georgetown, the aim of which is to resuscitate the Guyanese chapter of the Institute of Internal Auditors (IIA).

Noting that the workshop was meant to resuscitate the IIA Chapter here in Guyana which has been inactive for the past year and a half, Dr Singh said the initiative was “not an end but a beginning”.

Established in 1941, the IIA is an international professional association of more than 150,000 members with its global headquarters in Altamonte Springs, Florida, United States.

Throughout the world, IIA is recognised as the internal audit profession’s leader in certification, education, research, and technical guidance.

The IIA Guyana Chapter was formally established in 2000 at the Institute’s Leadership Conference in Orlando, Florida in the United States with a total of six members.

To date, there are 18 members of the IIA Guyana Chapter, a number that is hoped to be increased as the year progresses, with focus being primarily on large auditing units.

As part of the efforts to resuscitate the local chapter, a programme of activities has been organised, with yesterday’s workshop as the initiating event.

The workshop will focus on understanding and applying the IIA standards and writing an effective internal audit report.


A cross section of the gathering at yesterday’s workshop.
Dr Singh pointed out that the meeting was taking place against a backdrop of a troubled financial time where several elements are being brought into focus, particularly the function of Internal Auditors.

We are in a time when conventional wisdoms are being reviewed so it is inevitable that the ‘internal function’ will come into focus,” the minister asserted.

However, he said as the function of internal audit is brought more into focus, the potential to contribute to the cause of competitiveness is being recognised.

Internal audit must not be regarded as a minor bureaucratic function but as a contributor to competitiveness as it focuses on sound management,” Singh said.

He noted that the internal auditors focus on good internal controls, compliance with these controls, cost saving measures and their implementation, efficient execution of certain tasks and stemming of losses; all of which facilitate competitiveness and soundness of an entity.

The minister acknowledged that the internal audit’s function is allied with the interests of the nation as it involves the concerns of the public.

He said there must be equal emphasis on the internal audit function in both the public and private sectors, especially as it relates to the issues of accountability, transparency and value for money, among others.

Singh also lauded the efforts of the organisers, pointing out that the forum has the potential to contribute to the development of the internal audit function’s capabilities by developing the human resource base.

The event addresses the mobilisation of resources to develop the human resource base of internal audit,” he posited.

He alluded to the large turnout to the workshop as an indication that the internal audit profession is alive, vibrant and internal auditors are interested in building capacity to strengthen the internal audit function.

Such capacity building was recognised by Ms. Claire Gomez-Miller, the IIA District Adviser, as imperative.

We (internal auditors) are the gatekeepers of good corporate governance,” she affirmed.

Corporate Governance was defined as a set of processes, customs, policies, laws, and institutions affecting the way a corporation is directed, administered or controlled. In this case it is the internal controls that assist in the proper management of the business. The proper management takes into consideration risk management, risk assessment and regulatory functions, among other factors.

Gomez-Miller maintained that capacity can be built by seeking the necessary qualifications in the field of internal auditing.

Some of these offered by the IIA include the Certified Internal Auditor (CIA), Certified Government Auditing Professional (CGAP), Certified Financial Services Auditor (CFSA), and the Certification in Control Self-Assessment (CCSA) exams.

However, she acknowledged that the examinations have now become computerised, via Computer Based Testing, so the facilities that are currently available will need to be upgraded.

She explained that the Certified Internal Auditor (CIA) designation is the only globally accepted certification for internal auditors and remains the standard by which individuals demonstrate their competency and professionalism in the internal auditing field.

Êndidates leave the programme enriched with educational experience, information, and business tools that can be applied immediately in any organisation or business environment,” the IIA District Advisor posited.

Mr. John Seeram, President of the IIA, Guyana Chapter, concurred that certification was important and added that today’s internal auditors face many challenges.

Some of the challenges they face include the public’s general lack of awareness about the profession, and its inability to distinguish the roles of internal and external auditing. Professionals also lack professional guidance and adequate training,” he said.

In this regard, he furthered that the aim of resuscitating the local chapter was to facilitate the fulfillment of its roles, which include:

* To conduct in-house training in organisation,

* To conduct workshops and seminars on Internal Auditing,

* To update auditors on current developments in the field of internal auditing, and

* To encourage practitioners to take the IIA’s examination to acquire the Certified Internal Auditor (CIA) designation.

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Banks DIH Executive, Mr. Ramesh Dookhoo, who chaired the workshop, pointed out that in addition to these avenues of work, the IIA hopes to create a national framework to practice the profession, advocate for a better relationship between the Board and Internal Auditors, encourage and provide opportunities for training and educational development and facilitate networking among stakeholders.

As he outlined this, he charged the participants to act as ambassadors of the Internal Audit profession and practice the profession fairly and without prejudice to anyone. (Vanessa Narine)

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