Page 30 - Internal Auditor M.E. - June 2019

audit committee

By: Awad Elkarim Mohamed Ahmed
Practical Experience:

Key Challenges Facing Internal Audit

It is my pleasure to share my practical 1. Fragmented Internal Audit • Centralized reporting of Regional IA
experience as a Group Head of Internal Function: Function to Group IA Function.
Audit for Hayel Saeed Anam Group
(HSA) Group since Mar 2011, the The Group has internal control function
but in the traditional way and not based
experience in taking accurate actions on modern Internal Audit basics as per 2. Lack of Internal Audit Policies &
to solve the key challenges facing the International Professional Practices Procedures:
Internal Audit function from scratch to Framework (IPPF) issued by The
innovation. There is no one consistent audit practice
Institute of Internal Auditors (IIA). implemented across the Group. Each
1. Fragmented Internal Audit independent IA function has its own set
Function Action Taken: of audit practice. There was absence of
• Set-up Group Internal Audit IA Charter, inconsistent audit working
2. Lack of Internal Audit Policies and Function from scratch. papers, and reporting templates.
Procedures
• Gathered all the auditors under
3. Absence of Risk Based Audit centralized regional audit function.
Methodology • Assigned Regional Head of Internal Action Taken:
4. Threat to Internal Audit Audit for each region. • Develop IA Charter, approved by the
Board Chairman.
Independence • Introduce the service-based billing
system, based on the actual audit • Develop Group IA Manual (Policies
5. Lack of Awareness of Internal assignment hours conducted at each & Procedures).
Audit Role company under one pool of one
centralized audit function. • Communicated the IA Charter and
6. Lack of Audit’s Competence Group IA Manual across the Group.
• Provided all the resources and
7. Lack of Automation and Data assistance to the Regional IA • Encourage suggestion proposals for
Analytics Tool Function. continuous improvement.

30 INTERNAL AUDITOR - MIDDLE EAST JUNE 2019