Internal Audit: Vision, Value, and Voice Lori K. M. Cox, CIA, CRMA,

Internal Audit: Vision, Value, and Voice Lori K. M. Cox, CIA, CRMA, CGAP, CCEP TACCBO Conference, June 16, 2022 1

Agenda Vision What Internal Audit (IA) is not. What IA is and the IA profession. Value What IA can do. Benefits of IA. Voice Focus Attention Advocating and Supporting 2

Not audit 3

What is internal audit? Definition of Internal Auditing An independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. Internal Audit helps an organization accomplish its objectives by bringing a systematic and disciplined approach to evaluate and help to improve the effectiveness of risk management, control, and governance processes. In other words Internal audit can be a collaborative, strategic, trusted advisor and partner with management, providing information, analyses, and advice to help ensure operations are managed ethically, effectively and efficiently. Internal audit’s goals include contributing to: the continuous improvement of operations, governance, risk management and internal controls; enhancing and protecting organizational 4 value; and

Internal Auditors Have variety of skills, educational backgrounds, and expertise. Use their broad knowledge of the business to help management achieve its business objectives and assist the governing body in fulfilling its oversight responsibility. Are catalysts, risk and 5 control experts,

The Standards that Govern Internal Audit Internal audit governs itself by adherence The Institute of Internal Auditors (IIA) International Professional Practices Framework, including the Core Principles, the Code of Ethics, the Standards, and the Definition of Internal Auditing. 6

Internal Auditor’s Code of Ethics The Code of Ethics of The Institute of Internal Auditors (IIA) are Principles relevant to the profession and practice of internal auditing, and Rules of Conduct that describe behavior expected of internal auditors. Principles Integrity – Objectivity “A code of ethics is necessary and appropriate for the profession of internal auditing, founded as it is on the trust placed in its objective assurance about governance, risk management, and control.” The Institute of Internal Auditors & Rules of Conduct – Confidentiality – Competency 7

What does internal audit do? Typical Internal Audit Activities Audits - Operational/Performance - Financial - Compliance - Information Systems - Fraud - Follow-up Advisory/Consulting Services Investigations Special Projects What we do, and how we can assist Evaluate and Monitor Risks Assess Controls & Compliance Improve Operations Review Processes & Procedures Help Assure Safeguards Offer Insight & Advice Communicate Results 8

Benefits of Internal Audit Benefits Improvement in business operations. Increased efficiency/process simplification. Decreased cost, increased profit, increased cost recovery. Reduced risks and exposure. Enhancement of policy and procedures. Increased organizational/process communication and transparency. Increased security and 9

EXERCISE 10

Internal Audit: Voice Focus Attention Advocate Support 11

Additional Resources Institute of Internal Auditors (www.theiia.org) The Association of College and University Auditors (www.acua.org) 12

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