INTERNAL AUDIT THE NICHE FOR GROWTH - ACRA

INTERNAL AUDIT
THE NICHE FOR GROWTH
A PRESENTATION TO STAKEHOLDERS
ABOUT THE VALUE OF INTERNAL AUDITING

About the Institute of Internal Auditors
Established in 1941, the IIA is an
international professional association
of more than 170,000 members.
The Certified Internal Auditor designation is the
only globally accepted certification for internal
auditors. There are 100,000 CIAs worldwide.

About the IIA in Singapore
Established in 1976, 2,000 members
• There are 1,000 Certified Internal Auditors in Singapore.
• Guideline 13.4 of the Singapore Code of Corporate
Governance – “The Internal Auditor should carry out its
function according to … the Standards for the Professional
Practice of Internal Auditing set by the Institute of Internal
Auditors.”
• Together with SIAS and SMU, launching the inaugural
Internal Audit Excellence Award as part of the Investors’
Choice Awards 2011.

What should you expect from your Internal Auditor ?
“ The internal auditor’s job is to leave no stones
unturned.
He is the watchdog, the buddy to the CEO.
He is the conscience to the board and the CEO.
As the guardian angel to the CEO, he should tell him
where the devils are.”
David Gerald, President, SIAS

The Value of Internal Audit
• An independent function designed to improve an
organization’s operations.
• It helps an organization accomplish its objectives by
improving the effectiveness of risk management, control,
and governance processes.
Definition of Internal Auditing, IIA
5

The Value of Internal Audit
GOVERNING BODIES AND SENIOR MANAGEMENT RELY ON
INTERNAL AUDITING FOR OBJECTIVE ASSURANCE AND INSIGHT ON
THE EFFECTIVENESS AND EFFICIENCY OF GOVERNANCE, RISK
MANAGEMENT AND INTERNAL CONTROL PROCESSES.

The Value of Internal Audit
Internal Auditing provides assurance on
the organization’s governance, risk
management and control processes to
help the organization achieve its
strategic, operational, financial, and
compliance objectives.
Internal Auditing is a catalyst for
improving an organization’s
effectiveness and efficiency by providing
insight and recommendations based on
analyses and assessments of data and
business processes.
With commitment to integrity and
accountability, Internal Auditing
provides value to governing
bodies and senior management
as an independent source of
objective advice.

Growth Opportunities
• Proposed new Guideline 13.3 - The internal audit
function should be staffed with persons with the relevant
qualifications and experience.
• There are only 1,000 Certified Internal Auditors in
Singapore.
• Working with the Singapore Accountancy Council to
establish the Certified Practicing Internal Auditor
qualification.

Growth Opportunities
Proposed new Guideline 12.4
The AC should report to the Board at least
annually the adequacy and effectiveness of
the company's internal controls.
Shareholders/
Stakeholders
Board
Proposed new Guideline 11.2
The Board should review the adequacy and
effectiveness of the company's risk management
and internal control systems.
External
Audit
Audit
Committee
Proposed new Guideline 11.3
The Board should comment in the
company's annual report on whether it has
received assurance from the CEO and the
CFO regarding the effectiveness of the
company's risk management and internal
controls system.
CEO/CFO
Risk
Management
Committee
Risk
Management
Unit
Proposed new
Guideline 11.4
The Board may
establish a separate
board risk committee or
otherwise assess
appropriate means to
carry out its
responsibility of
overseeing the
company's risk
management framework
and policies.
Risk Assessment
Business Units

FOR MORE INFORMATION
The world’s leader in certification, education,
research, and technological guidance for the
profession of Internal Auditing.
www.iia.org.sg