Internal Audit BUG 2011

8/3/2019 Internal Audit BUG 2011

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Concept &

ApproachCBRMP LGED

Michael A Roy

Management consultant1

Internal Auditof

Beel User Group


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The concept: a peer review

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Internal Audit is an independent appraisal set inprojects M&E system to examine and evaluateparticularly group performance of some coreactivities

1. Finance , Asset, Books & Records Group fund ( Own and Project )

Maintenance/conservation activities

Cash status

Distribution and use of Group/Project fund

Books and Records

2. Capacity building Human

Social

Technical

Institutional

3. Performance rating


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The Purpose

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Support the project administrationand BUG in effective servicedelivery in transparent and

accountable manner

To that end:

Internal Audit provides them, i.e. Project &BUG : analyses of information recommendations and advices

:


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The Scopes

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Internal Audit mainly reviews:

1. The reliability and integrity of the information

2. Compliance with policies, plans, procedures,laws, and rules3. The safeguarding of assets.4. The economical and efficient use of resources

to meet the overall objectives


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1. The reliability and integrity ofinformation

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Financial and operating records are accurate,reliable, timely and complete.

Further on INTEGRITY

Correctness

Completeness/ containing all parts/works/formalities

Soundness/valid reasoning/logical and compliance with the intentionof the work

It is achieved by preventing accidental or deliberate unauthorizedinsertion, modification or destruction of data in books and records.

It is all about: Honesty, Commitment & Fairness a Moral Quality


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2. Compliance with policies, plans,procedures, laws, and regulations.

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Internal auditors are responsible fordetermining whether the process practiced

are adequate and effective and whetherthe activities audited are complying withthe appropriate policy, plans, procedure,laws and rules


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3. The safeguarding of assets

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Internal auditors should review the meansused to safeguard assets from various types

of losses such as those resulting from theft,fire, improper or illegal activities


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4. The economical and efficient use ofresources

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Procedures have been established formeasuring economy and efficiency

Deviations from procedures are identifiedanalyzed, and communicated to thoseresponsible for corrective action

Corrective actions have been taken or not

Underutilized of facilities

Procedures which are not cost justified


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The professional ethics

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The primary focus is to provide excellent serviceto the administrations

Should be committed to the highest degree offairness, integrity, and moral conduct inperformance.

The relationships with the BUG will be

maintained by respect, helpfulness, sharing,patience, and openness.

Although the IA team members are a part of theproject they should be committed to maintain

their independency in defining the scope andobjectives of their investigations

U i l C d f C d t f


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Universal Code of Conduct ofIA

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Principles

GIAS/IIA


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Process of collecting information

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Information should be/have:

sufficientcompleterelevantsound basis for audit

recommendations


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Summary note on findings

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Upon the conclusion of the fieldwork, the auditor willsummarize the audit findings with following focuses:

Statement of Condition (What is?)

Criteria (What should be?) Effect (what impact?)

Cause (Why did it happen?)

Recommendation (What should be done?)


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Steps in closing the audit

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Preparing draft report

DebriefingManagement letter

Final report


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Follow-up

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Internal auditors should check whetherappropriate actions are taken on reported

audit findings

a must...


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Benefit and values of IA(in summary )

Integrity

Transparency

Accountability

Credibility


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Thankswishing a quality work

Documents

Internal Audit BUG 2011