Page 31 - Internal Auditor M.E. - June 2019

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eMail the author at awadelkarim04@yahoo.com audit committee

3. Absence of Risk Based Audit Audit was considered as police catching • Successfully delivered by myself a
Methodology: the auditee for errors and mistakes. The training program “Internal Audit
role of internal audit was also confused Core Skills” to Hayel Saeed Anam
The internal auditors were carrying with internal control. For some of the (HSA Group) audit team in Yemen,
out very routine audit, with more General Managers (GM’s), it was a new 30 hours training held at “Al Saeed
emphasis of coverage rather than based set up function. Foundation of Science and Culture”
on high risks. It was more of a checklist attended by 114 Auditors from
approach by the internal auditors to Sanaa, Aden, Taiz, and Alhodeidah.
perform during audit. Action Taken: Similar trainings held at different
• Carry out Group wide road show regions.
Action Taken: map with the regional General
Managers (GM’s).
• Introduced Risk Based Audit 7. Lack of Automation and Data
methodology in the Group. • Introduce the vision, mission, role, Analytics Tool:
and benefits of IA.
• The Group IA Methodology made Urgent need to transfer from manual to
was based on Risk Based Audit in • Establish open door policy with the automation.
the IA Manual. top management.
• Carry out road-show map with • Stress the participation of IA in Action Taken:
extensive training. strategic meetings and projects.
Audit software selection based on
• Introduce the concept of Risk • Carry out several structural changes the following criteria:
Assessment at the audit planning by segregating IA from Internal
stage. Control. • SAP Compatibility: The audit
software should be compatible with
• Encourage developing Internal Risk the SAP system which can easily
Register. 6. Lack of Audit Competence: integrate and can extract reports.
Initially, there were hardly any criteria
4. Threat to Internal Audit to hire Internal Auditors. Most of the • Audit Management: The audit
Independence: Auditors were internally transferred software should have the following
from other functions. The auditors functionality; risk based annual
I observed a threat to IA independence, audit plan, scheduling, audit
initially the Internal Auditors were lack audit experience and with no management, performance
reporting to the General Managers professional certifications. reporting, electronic working
of the Companies. Internal audit papers, recommendation tracking,
recruitment, termination, reporting, Action Taken: comprehensive reporting, and
performance appraisal were being done • Encourage existing Auditors resource allocation
by the Companies General Managers.. to pursue CIA certification,
incentivized them by reimbursing • Common Platform: The software
Action Taken: the exam cost for those who passed connected to one platform, enabling
multiple teams working at multiple
• Introduced individual Internal the exam and become CIA holders. locations and the manager can
Auditors reporting to the Regional • CIA certification preparation review offsite.
Head of IA.
training course conducted to • Common Depository: The software
• Provide authority to the Regional selected 25 Auditors based on should provide access to the
Head of IA over his audit team. passing a qualifying exam set regional/group head to locate the
especially for course attendees’ audit engagement working papers,
• All the Regional Heads of IA have
a functional reporting line to the selection. audit reports, etc. from one place.
Group Head of IA in order to ensure • All new hires made mandatory to • Language: Require feature of the
independence. have bachelors (Business/ Finance) software in Arabic especially for
• Group Head of IA’s functional and at least CIA. Additional Middle East, the software language
reporting to the audit committee complementing certificates desirable must be Arabic and English.
and Chairman of the Board. such as CPA, CCSA, CRMA, CFSA,
CISA, CFE, etc. Awad Elkarim Mohamed Ahmed cia,
5. Lack of Awareness of IA Role: • Introduce internal training and cFSa, cGaP, ccSa, crMa, cceP-i, aSQ cQa,
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There was a lack of awareness in the knowledge sharing initiative within Group Head of internal audit, at Hayel Saeed
Group about the role of IA. This was the IA function, power point anam (HSa) Group
due to many factors. The auditor was presentations sent through email to Board audit and risk committees Member, at
deploying classic audit techniques and all regional Audit teams. Tadhamon international islamic Bank (TiiB)

JUNE 2019 INTERNAL AUDITOR - MIDDLE EAST 31