Headlines to look for

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Headlines to look for
INTERNAL AUDITING - FRONT PAGE NEWS! Internal
Auditors again on the leading edge
INTERNAL AUDITING - THE MOST SOUGHT- AFTER CAREER
CHOICE! University enrollment overflowing, the
envy of the campus!
INTERNAL AUDITORS - THE NEWEST CELEBRITIES! Those
not fortunate enough to become internal auditors
looking for opportunities to meet one
INTERNAL AUDITING - THE LATEST SENSATION! Wow!
Rarely does a profession contribute to society
like.
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Last June, Cooper told the audit committee of
WorldCom's board that the company had been
playing dirty with its accounting
practices.Time Magazine

• Internal Auditor named a
• Person of the Year

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Advocacy 2006Promoting the Profession in Canada

• Brian G. Brown CIA, CMA, CFE
• Director Corporate Services, Agricore United
  (Winnipeg)
• Canadian Representative on IIA Global Board of
  Directors
• and North American Board, Chair Canadian
  Advocacy Task Force

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Quotes

• Hidden Jewel in the organization
• Internal auditing is the primary agent of the
  audit committee within the company
• Internal audit is the primary resource of the
  audit committee in carrying out its duties and
  responsibilities
• One of the cornerstones of good governance

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Announcements

• October, 2005 Canadian Government announces new
  Internal Audit Policy, entrenching IA in the
  governance structure.
• IIA gains presence on the SEC/PCAOB roundtable.
• Internal audit is one of the hottest careers of
  the year

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References

• Corporate Governance What Directors Need to
  Know by Carol Hansell contains substantial
  discussion of the role of IA
• Audit Committee Effectiveness What Works Best
  recognizes key role of internal audit

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More Quotes

• Internal Auditing is a function formed by CFOs
  to help them monitor accounting methods and
  compliance. It has no place in the governance
  structure
• We believe that it should be left to
  managements discretion to determine its staffing
  needsre (sic) the establishment, maintenance,
  and evaluation ofinternal controls

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Announcements

• Canadian Securities Administrators 52-313 and
  proposed amended 52-109 continue to contain no
  reference to internal audit as a support for the
  Audit Committee.
• OSC Policy Forum and Dialogue Session (both 2005)
  contained no recognition of internal auditing.
• No provincial government initiatives to parallel
  Canadian federal government internal audit
  initiatives.

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References.

• Recent book for Audit Committees discusses three
  pillars of governance (Board, Management,
  External Auditors). Internal Audit is mentioned
  briefly in the section on Managements role in
  Governance.
• Draft version of 20 Questions did not reflect
  current practices in internal auditing.

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Andin the academic world

• No Canadian university offers an Internal Audit
  education program
• - generally, brief coverage under other forms
  of audit
• Primary and Secondary School programs contain no
  introduction to internal auditing

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Also

• Do each of our organizations recognize and value
  our profession?
• What about our friends and neighbours (ie the
  general public)?
• The media?

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What do we do?
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Long term vision for our profession

• Endorsed by governments regulatory bodies
• Consulted by outside organizations/commissions
• Viewed as a profession
• Recognized and respected in business/government
• Valued by our organizations
• Individual status and recognition

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IIA Mission Statement (2005)
The mission of The Institute of Internal Auditors
is to provide dynamic leadership for the global
profession of internal auditing. Activities in
support of this mission will include but will not
be limited to

• Advocating and promoting the value that internal
  audit professionals add to their organizations
• Providing comprehensive professional growth
  opportunities standards and other professional
  practice guidance and certification programs
• Researching, disseminating, and promoting to
  practitioners and stakeholders knowledge
  concerning internal auditing and its appropriate
  role in control, risk management, and governance
• Educating practitioners and other relevant
  audiences on best practices in internal auditing
  and
• Bringing together internal auditors from all
  countries to share information and experiences.

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Typical IIA Chapter Strategies

• Priority Areas
• Promotion of the profession
• Services to our members
• Quality education

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How - The Framework
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Steps

• Identify and prioritize targets
• Determine objectives for each target
• Develop plans (based on tier)
• Identify champions
• Develop messages
• Monitor and report

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Global Advocacy Efforts

• Memorandum of agreement with ACCA
• Founding member of COSO
• Contributor to King Report in South Africa
• Ongoing communication with SEC/PCAOB
• IFAC INTOSAI alliances
• External Service Provider communications
• Audit Committees/Boards of Directors
• Junior Achievement
• New Academic Relations Strategy
• Numerous responses to exposure drafts and other
  proposed rules/guidance

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Advocacy in CanadaMajor Change in Profile

• Establish the Canadian Council
• Hire a Canadian Executive Director
• Open an IIA Canada office

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Advocacy in CanadaSignificant events in the last
18 months

• Canadian Federal Government Internal Audit
  initiative
• Securities Commissions (OSC, AMF, BCSC)
  meetings, correspondence
• The Directors College IA on education program
• Institute of Corporate Directors National,
  Chapter relationships
• CICA Audit Committee Conference (September 2005)
• Certified Management Accountants (CMA) projects
• Certified General Accountants (CGA) discussions
• Several chapters initiate discussions with local
  universities
• Speaker at CFO Summit (March 2006)
• Meeting with Canadian leaders of ACCA, initiate
  chapter relationships

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Advocacy in CanadaCurrent Priorities

• Tier 1
• Ontario Securities Commission (OSC)
• Canadian Federal Government
• Institute of Corporate Directors (ICD)
• The Directors College
• Conference Board of Canada

• Tier 2
• Provincial Governments
• Provincial Securities Commissions
• Institute of Chartered Accountants (CICA)
• Certified General Accountants (CGA)
• Certified Management Accountants (CMA)
• External Service Providers
• Canadian Public Accountability Board (CPAB)
• Canadian Comprehensive Auditing Foundation (CCAF)

Initial priorities
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Common Messages

• Examples
• What is internal auditing?
• Why should an organization have internal
  auditing?
• What should be the reporting lines for the CAE?
• What is the relationship between internal audit
  and the audit committee?
• Why should an organization have an audit
  committee?
• How do internal and external auditors differ?

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Will this approach work?
External Stakeholders Others (Global/National)
IIA Other Advocates
These activities will help but..
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there are many others to influence..
Local Business, Academic Government groups
Local Chapters
Chief Audit Executives
C Class, Boards, ACs, Peers
Practitioners
Peers, Public, Students
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Every point of contact is an advocacy opportunity
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How?

• Relationship-building
• Confidence, stature, style
• Pride in our profession
• Common messages
• and
• Deliver on our Promises..

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Advocacy Risk

• Successful advocacy efforts are good news and bad
  news
• Risk of expectation gaps increases with greater
  awareness, attention, and regulation by those
  outside the profession

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Fundamental to successful advocacy.
Provide outstanding internal auditing services
every day.

• Focus on risk management, internal control,
  governance
• Audit Committee and Management support
• Quality Assurance Reviews

• Compliance with IIA Standards
• Certified, professional staff
• Top-notch communication skills

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Questions?Comments?