YPIA -2005

Peran Internal Auditor Sebagai Konsultan & Katalis

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What is Internal Audit?

Making improvements for the company. The testing of controls and functions of a business to see how efficiently it functions. To make improvement and to evolve. Ensuring that fraud is minimized, and most importantly that controls are in place.

Institute of Internal Auditors Definition

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organizations operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance process.
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Coso definition of Internal Control :

Internal control is a process effected by an entity's board of director management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories : 1. Effectiveness and efficiency of operations 2. Reliability of financial reporting 3. Compliance with applicable laws and regulations

Peran Internal Auditor

1. Sebagai WATCHDOG 2. Sebagai CONSULTANT 3. Sebagai CATALYST

The 3 roles of Internal Auditors

1. Watchdog : We watch and Warn
The watchdog role involves observing, counting.and rechecking to ensure that operations are complying with the laws, regulations and policies of the organization. The favorite audit process of the watchdog is the compliance audit. The compliance audit focuses on system variation ( errors, omissions, delays and fraud) Compliance auditing is a way of identifing varition in the system so an improvement can be put in place
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The 3 roles of Internal Auditors (continued)

2. CONSULTANT : We advise and Participate
Partner to Management Scope of Works : Economy, Efficiency, Effectiveness (3 E's Audit) The focus of the consultant is on the conservation of the organization's resources and helping managers manage.

The 3 roles of Internal Auditors (continued)

3. CATALYST : We Lead and move others within the policy set by senior management
The Catalyst seeks long term impact on the organization by focusing the audit on the long term values of the organization

Watchdog, Consultant, Catalyst ??? e high f 1. Watchdog 1. Catalyst f 2. Consultant 2. Consultant 3. Catalyst 3. Watchdog e high effi ient low

1. Watchdog 2. Consultant 3. Catalyst

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t i v e low

1.Catalyst 2.Consultant 3. Watchdog

Building a World-Class Audit Function

ELEMENTS
MISSION
STAKEHOLDER NEEDS RISK ANALYSIS PROCESS ANALYSIS TOOLS DATA ANALYSIS

TRADITIONAL
Departmental Mission Statement Financial Risk Transaction-Based Personal Productivity Data Retrieval Findings and Recommendations Financial Ratios Test-Based Stand-Alone IT Audits Reactionary Risk Analysis

INNOVATIVE
Co-Developed Relationship Business Risk Business Process Knowledge Management Continuous Auditing/Artificial Intelligence Business Insight Key Performance Indicators Control Self Assessment Integrated Audit Strategy Comprehensive Framework

METHODOLOGY REPORTING
ANALYTICS COMPLIANCE IT CAPABILITIES RISK MANAGEMENT

Better Assurance Better Ideas Lower Costs Greater Value

SKILLS
ACQUIRE

Auditor
Campus Recruits Internal Audit Career Path Reactive Task Management Input-Oriented (Hours) Audit Generalist Data, Information Event-Driven Remote Access (Give) Independent Tools

Business Advisor
Experienced Hires Rotational/Prerequisite for Leadership Virtual Project Teaming Results-Oriented (Value) Subject Matter Expert Synthesized Information and Experience Continuous Virtual (Share) Interactive Knowledge Sharing

World-Class Audit Function

PEOPLE

DEVELOP DEPLOY MANAGE EXPERTISE ACQUIRE

TECHNOLOGY/ KNOWLEDGE

SHARE COMMUNICATE TECHNOLOGY

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Internal Audit Relevance and Importance to Constituents

Regulators & Audit Committee Focus on Risk
Business Units Focus on Value

IA

Executive Management Focuses On: Risk Value Cost Efficiency (do more with less)

Meeting the Challenge of Stakeholder Expectations

Regulators and Audit Committee
Effective Risk Mitigation Compliance Reliable Opinions

Business Units
Process Improvement Business Enhancement Best Practices and Benchmarking

Executive Management
ROI Enhanced Business Unit Performance Risk Management

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Continuum of Value
High

Resources
Methodology People Knowledge Technology

Value

Low

Traditional IA

Progressive IA

Ketrampilan
Ketrampilan (skill) yang dibutuhkan untuk di miliki oleh internal auditor berdasarkan Standards for the Professional Practice of Internal Auditing :

Problem solving Ketrampilan berkomunikasi

Komunikasi audit
Statistika

Executing and evaluating the solution

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Sikap (attitude)
Berdasarkan Code of Conduct menurut the Institute of Internal Auditors, internal auditor diharapkan untuk memiliki prinsip-prinsip :

Integrity Objectivity Confidentiality Competency

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Consulting engagements Contents

Definition of consulting services

Independence and objectivity in consulting engagements

Due professional care in consulting engagements Scope of work in consulting engagements Communicating the results of consulting engagements Documentation requirements for consulting engagements

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Definition of Consulting Services

The Glossary in the Standards defines consulting services as follows: Advisory and related client service activities, the nature and scope of which are agreed upon with the client and which are intended to add value and improve an organizations operations.
Examples include counsel, advice, facilitation, process design, and training.

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Categories of Consulting Services

Possible categories could include:
Formal consulting engagements planned and subject to written agreement. Informal consulting engagements routine activities, such as, participation on standing committees, limitedlife projects, ad-hoc meetings, and routine information exchange. Special consulting engagements participation on a merger and acquisition team or system conversion team. Emergency consulting engagements participation on a team established for recovery or maintenance of operations after a disaster or other extraordinary business event or a team assembled to supply temporary help to meet a special request or unusual deadline.
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Independence and Objectivity in Consulting Engagements

Independence and objectivity may be impaired if assurance services are provided within one year after a formal consulting engagement.
Steps can be taken to minimize the effects of impairment by: assigning different auditors to perform each of the services; establishing independent management and supervision; defining separate accountability for the results of the projects; and disclosing the presumed impairment. Management should be responsible for accepting and implementing recommendations.

Care should be taken, particularly involving consulting engagements that are ongoing or continuous in nature, so that internal auditors do not inappropriately or unintentionally assume management responsibilities that were not intended in the original objectives and scope of the engagement.

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Due Professional Care in Consulting Engagements

The internal auditor should exercise due professional care in conducting a formal consulting engagement by understanding the following:
Needs of management officials, including the nature, timing, and communication of engagement results. Possible motivations and reasons of those requesting the service. Extent of work needed to achieve the engagements objectives. Skills and resources needed to conduct the engagement. Effect on the scope of the audit plan previously approved by the audit committee. Potential impact on future audit assignments and engagements. Potential organizational benefits to be derived from the engagement.

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Scope of Work in Consulting Engagements

Internal auditors should reach an understanding about the objectives and scope of the consulting engagement with those receiving the service.
Any reservations about the value, benefit, or possible negative implications of the consulting engagement should be communicated to those receiving the service. Internal auditors should design the scope of work to ensure that professionalism, integrity, credibility, and reputation of the internal audit activity will be maintained.
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Communicating the Results of Consulting Engagements

Communication of the progress and results of consulting engagements will vary in form and content depending upon the nature of the engagement and the needs of the client.
Reporting requirements are generally determined by those requesting the consulting service and should meet the objectives as determined and agreed to with management. However, the format for communicating the results of the consulting engagement should clearly describe the nature of the engagement and any limitations, restrictions, or other factors about which users of the information should be made aware.

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Documentation Requirements for Consulting Engagements

Internal auditors should document the work performed to achieve the objectives of a formal consulting engagement and support its results.
However, documentation requirements applicable to assurance engagements do not necessarily apply to consulting engagements.

Auditors are encouraged to adopt appropriate record retention policies and address related issues, such as, ownership of consulting engagement records, in order to protect the organization adequately and to avoid potential misunderstandings involving requests for these records.
Situations involving legal proceedings, regulatory requirements, tax issues, and accounting matters may call for special handling of certain consulting engagement records.

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Peran Internal Auditor Sebagai

YPIA -2005

Konsultan & Katalis

Thank You

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