The core of each internal control system is the integrity of its people, processes and technologies. There is little dispute that the financial crisis in the United States caused by parallel system failures had a global economic and political impact. Due to corporate scandals today, bankruptcies, hopeless financial crises and a crisis in the financial market, the light is again lost in the criticality of systemic risk and control over processes and technologies. However, more attention is paid to the people who are responsible for managing and managing these systems. Since people are the most important part of any system environment, it is imperative that the right people, especially qualified internal auditors, are in the right positions, performing the right actions.
INTERNAL AUDIT AS A CORPORATE CONSCIOUSNESS
“Risk management is three things: understanding the limits of acceptable risk, providing trust and guidance for management and predicting events to succeed,” said Admiral William J. Fallon (United States Navy, Retired), Co-Chairman of the Risk Management Commission Blue tapes ”in the report of the Commission“ Balancing risk and remuneration ”. In today's economic climate, the concept of risk management and management must evolve from simple written principles to sound practices through government and management processes. International Standards for the Professional Practice of Internal Audit (Standards) IIA define the role of internal audit in management in Standard 2110 - “Management”: “The internal audit activity should evaluate and make appropriate recommendations to improve the management process when performing the following goals:
- Promoting appropriate ethics and values within the organization.
- Ensuring effective management of organizational effectiveness and accountability.
- Transfer of risk information and control to relevant areas of the organization.
- Coordination of activities and informing information between the board of directors, external and internal auditors and management.
As for ethics, the internal audit function, as a rule, should serve as a corporate conscience. Therefore, the position of the internal audit function should be such that it can influence the corporate “brain”, which covers the members of the board and management who are the custodians of the organization (i.e., “Bodies”) and its well-guarded security guards. As a corporate conscience, internal audit must be prepared for an open, frank and constructive dialogue with their advice and guidance so that they not only meet the standards, but also balance the scale between the financial and ethical performance of the organization.
One of the most difficult problems faced by heads of internal auditing is how to ensure the transparency of personal values of the board and management, which play an important role in establishing the integrity and core values of an enterprise. While the public sector continues to bring transparency to government and management to the forefront of the reform agenda, it is likely that more attention will be paid to personal transparency between board members and management. Internal audit activities should take into account and take into account this “internal” transparency in evaluating management structures and processes and promoting appropriate ethics and values within the organization.
PREPARING FOR A CALL
Internal auditors play an important role, and they need to be trained and trained to effectively carry out their duties. An experienced and qualified auditor should be able to filter out noise and sift before what information is relevant, reliable and sufficient to justify timely decisions and actions. A new generation of internal audit professionals should strive to be as wise as advice, as sound as guidance, as sound as lawyers, as diligent as accountants, and as accurate as statistics. First of all, internal auditors should adhere to fair and ethical judgment.
Historically, there are no regulatory requirements for internal audit standards or certification requirements for their specialists. It is not right now that the regulation will ensure compliance with the final quality standards or certification; however, it is imperative that educational and training programs are implemented to enhance the effectiveness of the internal audit function. These programs will improve the company's internal watchdog capabilities to help identify and respond to risks that threaten the health and vitality of the organization and its economic ecosystem.
Although there are many certificates related to auditing, some are more capable than others. For example, the IIA Certified Internal Auditor (CIA) project, which has been enrolled by approximately 80,000 internal auditors worldwide, is a certificate of the Institute’s bihelling and standard by which people demonstrate their overall competence and professionalism in internal auditing. While other certificates cover specific areas of specialization, CIA certification covers a wider range of knowledge that internal auditors need to know. “As a CIA achievement, your general skills in internal audit establish your authority and demonstrate your commitment to the internal audit profession,” says Angie Woodward, CIA, CCSA, CGAP, CFSA, IIA certification director. “Even for people who do not plan to remain within the framework of an internal audit in the long term, training the CIA can still add value to their careers by preparing them for various management tasks.”
In addition to the CIA, IIA offers three specialized certificates:
Certified Government Auditor (CGAP). This project demonstrates individual knowledge of the unique features of public sector audits — fund accounting, grants, legislative oversight, and privacy rights. The wide coverage of the program emphasizes the role of the auditor in strengthening public accountability and improving public services.
Certified Financial Services Auditor (CFSA). CFSA measures individual knowledge and skills in the principles and practice of auditing in the banking, insurance, and financial services sectors.
Certification in self-assessment control (CCSA). This certification is intended for practitioners of self-assessment control (CSA). Gaining necessary knowledge about areas such as risk and control models is often viewed as a reality only by auditors — provides CSA practitioners with concepts that are vital to the effective use of CSA to help clients achieve their goals.
Other specialized certification programs are also available for internal auditors. The Association of Certified Fraud Review Experts (ACFE), a Certified Fraud Review Expert (CFE), demonstrates proven experience in fraud prevention, detection, and deterrence. According to the ACFE, the CFE Treaty has a unique set of skills that combine knowledge of complex financial transactions with an understanding of the methods, laws, and methods of dealing with fraud charges. Fraud experts are also trained to understand not only how fraud happens, but why it happens. About 20,000 anti-fraud specialists obtained their certificates to the CFE Treaty. The Information Systems Audit and Control Association (ISACA) offers certification of Certified Information System Auditors (CISA), which is a recognized achievement for those who control, monitor and evaluate the IT systems and business systems of an organization. More than 70,000 professionals have earned CISA since its inception in 1978.
Although internal audit certification is currently not mandatory, audit-related acronyms are beginning to enter the conference room to help managers and management set standards for assessing the competence and qualifications of those professionals who are responsible for protecting corporate conscience.
LOOKING FOR THE FUTURE
Although we are still stopping problems in these tough economic times, it is important to recognize that government regulation will lead to various changes in management and internal control systems. Those organizations that recognize this will not only be prepared to respond to these changes, but will also be better positioned to focus on strategic operations that create value for stakeholders. As companies use this ideology, we will continue to see a trend towards increased certification associated with auditing as a means to enable organizations to evaluate and measure the quality of internal control and maintain a healthy existence.
