THE Guyana Chapter of the Institute of Internal Auditors (IIA) yesterday commenced a rigorous two-day workshop and seminar as part of its 2014 education delivery programme.

President of the IIA Guyana Chapter, Mr. Jaigopaul Ram, speaking at the seminar, noted that the aim of the workshop is to boost the knowledge and competence of internal auditors through presentations on value added

services.

Ram cautioned that there are many organisations which allow the accountant and managers to be a part of the implementation of inventory systems and inventory management. He noted, “Auditors need to be involved in the whole: from scoping the system, design of the system, to implementation of the system.”

He said organisations have formed quality assurance teams which are inclusive of members from inception to implementation. Ram said that inclusive systems allow for questioning of the functionalities of implementation systems, and even to challenge management in determining the effectiveness of adopted systems.

He called on auditors to urge their managerial boards to include them, in order “to make you more proficient in planning your audit and furnishing the kind of recommendation that your organisation would need.”

With the advent of globalization with its concomitant new products and services, auditors are forced to adopt new measures for dealing with old concerns, Ram posited.

Also addressing the gathering was Mr. Larry Kowlessar, Certified International Facilitator of the Institute of Internal Auditors, and Manager of Audit Assurance at the Agricultural Development Bank of the West Indies.

In his remarks, he distinguished between the roles of internal and external auditors. “External auditors are persons who reside in private organisations and who are contracted to come in at the end of the financial year to look at the financial statements and balance sheets.” This process is utilised, according to Kowlessar, to determine the financial performance of the entity.

Internal auditors, however, are resident employees of the organisation who examine ongoing processes.

Kowlessar maintained, “It is easier for the internal auditor to detect fraudulent activities and mismanagement, and to look at weak controls in order to recommend strengthening of such controls.”

A key area of the training sessions will be inventory fraud, and strategies for preventing it. This is done firstly to determine whether fraud had been perpetrated. “These techniques and strategies might not be present in books”, he added.

In inventory, there may not always be stock counts for six months or a year, and this cyclical knowledge is known to some managers. Trends in record keeping are a key detection method for determining fraud in order to determine a pattern of actions; “while there are certain people who are acting,” he said.

Questioned on possible sanctions after fraud has been detected, Mr. Kowlessar remarked that in Trinidad and Tobago, there is a Fraud Squad which is empowered under the Ministry of National Security as a branch of the Police. This body would conduct investigations and would ensure enforcement of laws that are in place for dealing with such frauds.

IIA Board Member Ramesh Dookhoo spoke to the newly admitted young professionals as he pointed out the role of the auditing profession in Guyana through “good governance in our institutions.”

(By Derwayne Wills)