Page 21 - Internal Auditor Middle East - December 2017

TO COMMENT on the article,
EMAIL the author at marwan.alkhouli@oman-arabbank.com Internal Auditor

activities do not affect the progress of the risk - An acceptances by management to address the issue in question. The
annual internal audit plan. of advice given to them, of course, consultancy role should offer management
involves acceptance by management participative advice and support in their
Management of the Internal Audit of accountability for the consequences
Function must therefore build into the of implementing the advice; it may be activities.rIn summarizing, I encourage
annual internal audit plan time for these beneficial to note this in the agreed Terms all Internal Auditors to keep in mind
value-add consulting services in a way that of Reference for the assignment. the following when planing to conduct a
balances its assurance and consulting roles. consultancy assignment:
This is fundamental at the planning stage 1. There should be a detailed plan setting
to ensure that the Internal Audit Function When establishing the formal consultancy
dose not focus on consulting services to the role and in the strategic planning of out the scope of what is to be reviewed.
detriment of its core assurance function. the Internal Audit function it will 2. The objectives should be defined at
be appropriate to assess the need for
There may also be times when management consultancy services. Elements of this least in output terms, and ideally in
want Internal Audit to undertake a assessment may include: outcome terms.
consultancy assignment but seek some 3. The exact role of the internal auditor
form of assurance that any findings will 1. Consideration of past annual should be defined and we should
not be reported upwards or included audit opinions; the more general always made it clear that internal audit
in Internal Audit’s overall reporting improvement that is required in is not part of any sign-off decision
to the Audit Committes. In such cases the organization’s risk, control and
the assignment should be declined; the governance the higher the need for mechanism.
circumstances may cause Internal Audit, in consultancy activity is likely to be. 4. Reporting formats should be defined,
its assurance role, to want to investigate the for example will there be a specific
reasons behind such a request in case it is 2. Consideration of the rate at which the audit report or will the internal
an indicator of alhidden issue. Being able organization and its risk, control and auditor’s work contribute to a report
to undertake consultancy work further governance is changing. The higher this generated by a multidisciplinary
adds to Internal Audit’s knowledge base is, the more need there is likely to be working group.
about risk, control and governance and for consultancy services.
therefore makes a contribution to the 5. Timing issues should be defined in
overall internal audit opinion. 3. How much of the consultancy advice detail, including the amount of staff
being brought in could be satisfactorily days allocated and targets in terms of
and more economically delivered with elapsed time.
Specialist Skills the Internal Audit skills-set and how
much is reliant on different specialist 6. Both internal and external quality
A benefit to any Internal Audit function reviews should encompass an appropriate
is that individual internal auditors may and technical skills. proportion of consultancy assignments in
have knowledge, experience and skills 4. An assessment of management their review samples.
other than their internal audit skills demand. To what extent would
which management would like to exploit. management like to request Finally for more information and guideline
For instance, internal auditors may also consultancy services from Internal about consultancy services you can visit the
have particular training, experience or Audit? following link:-
qualifications in IT, accountancy or legal
issues. If a consultancy assignment is to be 5. The capacity of Internal Audit to 1. http://www.ifaci.com/uploads/_ifaci/ani_
delivered in which these skills will be of deliver consultancy services. The fichiers/IPPF-Standards-2017-01.pdf
particular benefit it will, of course, make consultancy role must not undermine 2. https://global.theiia.org/iiarf/Public%20
sense to deploy those internal auditors the ability of resources to deliver Documents/Chapter%204%20
assurance work and in the short term
who have these skills on the assignment. Internal Audit may have very limited Assurance%20and%20Consulting%20
However, it will be necessary to make resources for consultancy work. If it is Services.pdf
clear in the agreed Terms of Reference intended to increase Internal Audit’s
for the assignment that the Internal Audit capacity to deliver consultancy services 3. https://www.iia.nl/SiteFiles/Publicaties/
Function can only be accountable for there will be a lead-time associated IIA_Bro_A4_Consulting_Auditing_EN.pdf
ensuring due professional care is taken with the recruitment of appropriately 4. https://www2.deloitte.com/global/en/
in developing advice offered on risk and qualified staff. pages/audit/solutions/global-chief-audit-
control issues. If management choose It is also important that consultancy executive-survey.html
to place reliance on specialist advice, services are offered to support
drawing on skills beyond the internal management in their work, not to be a AlShareef Marwan H. AlKouli
audit skill set this must be at their own substitute for management’s own efforts GM – Head of Operations Group

DECEMBER 2017 INTERNAL AUDITOR - MIDDLE EAST 19