THE PROFESSIONAL INTERNAL AUDITOR

1
THE PROFESSIONAL INTERNAL AUDITOR

• What is the CIA, how to get it, how to keep it,
  and why its important!

2
Objectives

• Brief overview of the IIA (international and
  national)
• Certification and professionalism
• What is a CIA?
• What are the requirements to obtain a CIA?
• What are the tools to prepare and be successful?
• Continuing education requirements

3
The IIA Global

• Established in 1941
• International professional association of more
  than 150,000 members
• Headquarters in Florida with affiliates in 160
  countries
• Recognized as the internal audit profession's
  leader in certification, education, research, and
  technological guidance.

4
The IIA in Canada

• 12 chapters in Canada, including Ottawa, the 2nd
  largest in terms of membership
• 6,254 members in Canada as of October 31
• 1,650 members from the public sector
• Over 11 growth since last year
• New IIA Canada entity created with a Council
  composed of leading practitioners from across the
  country

5
Definition of Internal Auditing

• Independent, objective, assurance and consulting
  activity
• Designed to add value and improve an
  organization's 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 processes

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Internal Auditing A Pillar of Governance

• Traditionally, the recognized three pillars have
  been the Board, Executive Management, and
  External Auditors.
• IA is more and more recognized as the fourth
  pillar of governance (see article on speech given
  by David Brown, QC, former Chair and CEO of the
  Ontario Securities Commission in CA Magazine.com
  http//www.camagazine.com/3/8/2/5/3/index1.shtml)
  

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Internal Audit

• Evaluates risk exposures relating to the
  organization's governance, operations, and
  information systems, in relation to
• Effectiveness and efficiency of operations.
• Reliability and integrity of financial and
  operational information.
• Safeguarding of assets.
• Compliance with laws, regulations, and contracts.

8
The Internal Auditor Skills and Expertise

• In-depth knowledge of
• the organization's industry
• internal audit Standards and best practices
• Technical understanding and expertise
• Knowledge on, skills for
• implementing and improving processes in both
  financial and operational areas
• Strong communication and presentation skills, and
  professional certification (CIA).

9
Certification

• 67,000 members are certified internal auditors
  (CIAs).
• The Certified Internal Auditor (CIA)
  designation is more than ever recognized and
  required.
• This designation is the only globally accepted
  certification for internal auditors.
• Remains the standard by which individuals
  demonstrate their competency and professionalism
  in the internal auditing field.
• Candidates leave the program enriched with
  educational experience, information, and business
  tools that can be applied immediately in any
  organization or business environment.

10
More Than a Title

• The program designed as a comprehensive
  educational and development program
• Helps internal auditors strengthen and showcase
  their professional abilities. As a result, the
  CIA designation will
• Distinguish you from your peers.
• Carry weight with internal staff and external
  clients.
• Develop your knowledge of best practices in the
  industry.
• Demonstrate your proficiency and professionalism.
• Give you personal satisfaction of achievement.
• Boost your career opportunities.
• Lay a foundation for continued improvement and
  advancement.

11
Statistics

• In early 2007, Robert Half International released
  its years hot accounting and finance
  positions.
• Internal Auditor ranks 1st on the top-5
  high-growth positions for 2007.
• Companies seek internal auditors, particularly
  those who possess the CIA designation.
• Reflecting the intense demand for these
  professionals, compensation is rising.
• National average starting salaries for IA
  managers at large companies are expected to climb
  5.8 percent this year, to a range of 77,500 to
  101,500 (US ).
• In Canada, salaries expected to increase 8.6 for
  a similar position in 2008 (range of 88K-131K).

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Program Eligibility Requirements

• Education
• CIA candidates must hold a bachelor's degree or
  its equivalent from an accredited college-level
  institution. 
• Work experience will not substitute for an
  appropriate degree.

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Program Eligibility Requirements

• Character Reference
• CIA candidates must exhibit high moral and
  professional character and submit a character
  reference form completed by a CIA, their
  supervisor, manager, or educator with their
  registration.

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Program Eligibility Requirements

• Professional Experience
• CIA candidates must complete 24 months of
  internal auditing experience or its equivalent.
• Equivalent experience means experience in
  audit/assessment disciplines, including external
  auditing, quality assurance, compliance, and
  internal control.
• A master's degree or work experience in related
  business professions (such as accounting, law, or
  finance) can be substituted for one year of
  experience.
• Candidates may sit for the CIA exam prior to
  satisfying the professional experience
  requirement, but they will not be certified until
  the experience requirement has been met.

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Program Eligibility Requirements

• Code of Ethics
• CIAs and CIA candidates must agree to abide by
  the Code of Ethics established by The IIA.
• Continuing Education
• CIAs required
• to maintain their knowledge and skills
• to stay abreast of improvements and current
  developments in internal auditing standards,
  procedures, and techniques.
• Practicing CIAs must complete and report 80 hours
  of Continuing Professional Education (CPE) every
  two years.

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Exams

• 4 Parts (certain exemptions)
• Parts I, II, and III are considered the core
  global syllabus of the CIA exam
• Offering strong focus on corporate governance and
  risk issues
• Exhibiting alignment with The IIA's Professional
  Practices Framework. 

17
Exam Flexibility

• Candidates may choose to take one or more exam
  parts at any time during the program eligibility
  period, and in any order of preference. 
• Starting February 2008, exams will be computer
  based.
• Four 2-month windows rather than 2 exam cycles a
  year before (May and November). 
• No more 2-month wait to get your results. You
  leave the room with your results!

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Exam Content

• Part I The internal audit activitys role in
  governance, risk management, and control
• Part II Conducting the internal audit engagement
• Part III Business analysis and information
  technology
• Part IV Business management skills

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Part I Content(Role in governance, risk
management, and control)

• A. Comply with the IIA's attribute standards
  (15-25) (PProficiency level is expected)
• B. Establish a risk-based plan to determine the
  priorities of the Internal Audit Activity
  (15-25) (P)
• C. Understand the Internal Audit Activity's role
  in organizational governance (10-20) (P)
• D. Perform other Internal Audit roles and
  responsibilities (0-10) (P)
• E. Governance, risk, and control knowledge
  elements (15-25) (Mix of Awareness P)
• F. Plan engagements (15-25) (P)

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Part II Content(Conducting the internal audit
engagement)

• A. Conduct engagements (25-35) (P)
• B. Conduct specific engagements (25-35) (P)
• C. Monitor engagement outcomes (5-15) (P)
• D. Fraud knowledge elements (5-15) (P A)
• E. Engagement tools (15-25) (P A)

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Part III Content(Business analysis and
information technology)

• A. Business processes (15-25)(P A)
• B. Financial accounting and finance (15-25) (P
  A)
• C. Managerial accounting (10-20) (P A)
• D. Regulatory, legal, and economics (5-15) (A)
• E. Information technology - IT (30-40) (A)

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Part IV Content(Business management skills)

• A. Strategic management (20-30) (A)
• B. Global business environments (15-25) (A)
• C. Organizational behavior (15-25) (A)
• D. Management skills (20-30) (A)
• E. Negotiating (5-15) (A)

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Exam Costs(Non IIA Members in brackets)

• Application fee US 60 (75)
• (non-refundable)
• Exam parts US 85 (110)
• (per part/per sitting)
• Part IV professional recognition credit US 85
  (110)
• (non-refundable, fee waived for CCSAs, CGAPs,
  and CFSAs)

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How to prepare?

• Set a target date for writing the exam (s).
• Develop your schedule backward, taking into
  account
• your level of readiness
• the difficulty of the topics
• the time you have (be realistic!), and the date
  above!
• Stick to your schedule.
• Dont spend time on areas you know already. Focus
  on difficult areas.
• Test yourself frequently in an exam environment
  as similar as possible to the real thing!!!

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My Own Experience With The CIA Exams

• Used books and CD Rom of questions for Parts I
  and II
• Using The IIA CIA Learning System (on-line and
  printed material) for Part III
• Made a schedule and followed it very closely
• Left plenty of time to test my knowledge (before
  reviewing material, after each section, and at
  the end, before the exam)
• Succeeded Parts I and II at 1st try
• Now working on doing Part III in Feb. 2008 and
  hopefully succeed the 1st time!

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Tools Available - Help Yourself!

• Wide selection of tools available
• Books
• CD-ROMS
• Audio
• On-line
• The IIA CIA Learning System
• Review seminars

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The IIA CIA Learning System

• Comprehensive professional development and exam
  preparation program.
• Combines print materials and interactive online
  learning software to deliver a customized
  learning experience.
• Cost typically less than other similar products.
• Owned branded by The IIA.
• Developed by IIA subject matter experts who used
  over 300 reference materials.  

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The IIA CIA Learning System

• Emphasis not only on helping people to pass the
  exam, but also to teach the material, be more
  in-depth, and offer members a premier, high
  quality exam preparation tool.
• Online component designed to prepare users for
  the Computer Based Testing (CBT) with timed test
  questions that are both diagnostic and
  instructional.
• Developed Instructor Materials and both
  Instructor-led traditional and intensive review
  classes that are offered in conjunction with The
  IIA CIA Learning System self-study materials.
• These IIA CIA Learning System Instructor-led
  classes and instructor materials are available
  for chapters to offer to their members. 

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The IIA A Source of Reference for You

• The IIA Research Foundation regularly issues
  material of interest to internal auditors and to
  anyone interested in risk management, internal
  control, and governance
• Examples of recent publications
• Public Internal Financial Control A New
  Framework for Public Sector Management
• Four Approaches to Enterprise Risk Management
• Auditing Human Resources
• Intellectual Property Auditing The Process
• Conflict Management Negotiation Skills for
  Internal Auditors
• Ethics and Compliance Challenges for Internal
  Auditing, etc.
• Other less recent but no less pertinent books
• Auditor Roles in Government Performance
  Measurement A Guide to Exemplary Practices at
  the Local, State, and Provincial Levels
• All Above Board Great Governance for the
  Government Sector
• Countless booklets, position papers, are also
  published on the IIA website (www.theiia.org).

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Questions?

• Références/References
• IIA Global www.theiia.org
• IIA Canada www.iiacanada.ca
• (this site has links to all the chapters/ce site
  donne aussi accès aux sections)
• Courriel/email luc.lavoie_at_theiia.org