[PPT] - AFIIA 2017 1. Agenda 2. Etymology 3. VUCA world 4. Imperatives PowerPoint Presentation

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PANEL MAY 18TH 2017 Growing the Profession in Africa. The Imperatives for an Intelligent Internal Auditor The 4th AFIIA International Conference, 2017, Accra (GHANA)

Prepared by ir. Tommaso Capurso President UFAI, MIA, CCSA, CIA, QA, EFARM, CRMA, ISO31000 RM Professional Internal audit expert capursotommaso@gmail.com Presented by Mounim Zaghloul CIA,CRMA,CISA,CGEIT,CRISC,COBIT, ITIL, ISO 9001, 20000, 27001, 37001 Vice-president UFAI for North Africa and Middle East zmounim@consilium.ma in collaboration with 2

1. Agenda
2. Etymology
3. We live in a “VUCA” world
4. Imperatives for an Intelligent Auditor
5. Conclusions
1. Agenda
2. Etymology
3. VUCA world
4. Imperatives
5. Conclusions

From

latin verb intel-ligere :

– Faculty of learning, reasoning, understanding – Power of discerning, sagacity – Ability to gather, collect and choose/select informations (cf. « election »)

Variant, latin verb inter-ligere :

– Ability to combine concepts – Aptitude in grasping truths, relationships, facts, meanings – Faculty to see globally

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Etymology for « intelligent »

1. Agenda
2. Etymology
3. VUCA world
4. Imperatives
5. Conclusions

Internum auditor sapiens sapiens

4 World Economic Forum, The Global Risks Report 2016, 11th Edition Categories of risks:

1. Agenda
2. Etymology
3. VUCA world
4. Imperatives
5. Conclusions

 Understand business context, complexity and global interactions

Africa, as other regions, lives in a “VUCA” world. Volatile, Uncertain, Complex, Ambiguous

AFIIA 2017

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Les organisations doivent s’adapter

5 Fire, tools and now the wheel… Remember when life was simple…

1. Agenda
2. Etymology
3. VUCA world
4. Imperatives
5. Conclusions

“The world is going through more fundamental change than it has in hundreds, perhaps thousands, of years” Tom Peters & Robert Waterman (“In search of excellence”, 1982)

Top 10 business risks in 2017: Africa & Middle East

6 Source : Allianz Risk Barometer

n Business Risks 2017
1. Agenda
2. Etymology
3. VUCA world
4. Imperatives
5. Conclusions

Les organisations doivent s’adapter

7 Source : Loops of governance: protect the value for all interested parties

4.1 Understand the interactions between internal auditors and all interested parties (expectations)

1. Agenda
2. Etymology
3. VUCA world
4. Imperatives
5. Conclusions

Les organisations doivent s’adapter

Keep focused on the vision/mission/strategy/objectives
Uncover complexity of systems, process, structures,…
Understand them and make them understandable
KISS ? … “Cut through complexity”

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4.2 Understand your organization/the “business”

1. Agenda
2. Etymology
3. VUCA world
4. Imperatives
5. Conclusions

Develop your acumen for smart business modelling!

Intelligent Auditor Intelligent CAE

AFIIA 2017

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4.3 Understand key considerations leading the internal auditor to adapt and evolve

Source: KPMG Internal Audit: Top 10 considerations for 2017

1. Agenda
2. Etymology
3. VUCA world
4. Imperatives
5. Conclusions

Top 10 Considerations for 2017

1. Cybersecurity
2. Culture/Soft Controls
3. Integrated Assurance
4. Regulatory compliance
5. Third party relationships
6. Anti-bribery/anti-corruption
7. Emerging technologies
8. Data analytics and continuous auditing
9. Performance risk

10.Strategic alignment

4.4 Build trust

Trust can not be required, it must be deserved
Treat all people as you would like to be treated
Provide assurance first but also advisory activity (RM)
Consider auditees as partners all along audit missions
An audit mission is CO-PRODUCED (auditee + auditor)
ADDED VALUE IS CO-CREATED (auditee + auditor)

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1. Agenda
2. Etymology
3. VUCA world
4. Imperatives
5. Conclusions

Jiminy Cricket Trusted Advisor Pinocchio Enlightened decision maker

4.5 Have a systemic/holistic understanding of IA

activities. Be, first of all, an intelligent planner!

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1. Agenda
2. Etymology
3. VUCA world
4. Imperatives
5. Conclusions

Understand the Business Understand Customers/ stakeholders/ expectations Promote the IAD function Settle position, responsability, authority Align the IAD

bjectives/

activities Organize the IAD Staffing (recruit, retain, train, manage) Performance evaluation Independent

pinion on

internal controls risks corporate.gov. Audit universe & (provisional) plan (annual) audit plan Plan Organize a mission Execute a mission Check = Evaluate progress Act = Lessons learned Supervise the audit mission Report Opinion & recommendations. Business improve- ments Follow-up results Risk reduction PLAN DO CHECK ACT Debriefing Feedback from stakeholders (Audit Com./Board/Senior Management) Satisfaction survey Periodic input on business concerns (self assessment from Management,...)

4.6 Be humble. Challenge your objectivity: assess your own IA risks

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1. Agenda
2. Etymology
3. VUCA world
4. Imperatives
5. Conclusions

Planning a mission Field work Communicating results Follow up recommandations Return of experience (R-Ex) Risk assessment up date

AFIIA 2017

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4.7 Aggregate assurance processes (“integrated reporting”)

Coordinate and cooperate with all links of the 3 LoD
Consolidate visibility on assurance

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1. Agenda
2. Etymology
3. VUCA world
4. Imperatives
5. Conclusions

Front office (Operational Management) Middle office (RM, compliance, Quality, …) Back office (Internal Audit) 1st line 2nd line 3rd line

4.8 Use your “emotional intelligence”

Understand the corporate culture
Foster cooperation within the organisation and pay attention to

interfaces; be agile in your response time

Act professionally (confidentiality, competences, integrity,
bjectivity) + use the IPPF
Discern between:

– best practice (?) “segregation of duties” (old reasoning in silo’s)/fragmentation of structures & activities – strong “reliance” & relationship creation with/among actors

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1. Agenda
2. Etymology
3. VUCA world
4. Imperatives
5. Conclusions

Trusted advisor

Change the paradigm!

Inspector Controller

4.9 Enhance your communication skills and style

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1. Agenda
2. Etymology
3. VUCA world
4. Imperatives
5. Conclusions

Identify your style

f

communica tion Be assertive Listen actively to communicate Problem solver Mathematical Technical Analyser Logical Conceptualizer Synthesizer Imaginative Holistic Artistic Planner Controlled Conservative Organizational Administrative Talker Musical Spiritual Emotional Interpersonal HBDI Herrmann Brain Dominance Instrument Needs Expectations Facts, observations “To the point” report Smart recommendations Internal audit = a co-produced SERVICE = a technical competence + relationships to manage = a challenge !

4.10 Train constantly and improve your intelligence profile

Be creative!
Be a “knowledge worker”
Be an “ignorance officer”

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1. Agenda
2. Etymology
3. VUCA world
4. Imperatives
5. Conclusions

I want you to become an intelligent auditor, as smart as me OK, I will be an intelligent auditor by lunchtime Because you’re a fast worker? Sure ! Source: adapted from Scott Adams, 2014, DilbertCartoons

AFIIA 2017

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Be a change agent! Succeed in the change of mental representations of interested parties/decision makers

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1. Agenda
2. Etymology
3. VUCA world
4. Imperatives
5. Conclusions

AS IS ! TO BE? TO BE!

Intelligent auditor

AS IS !

Intelligent interested parties

Many thanks for your kind attention!

Take a question at random May I answer at random? 18

1. Agenda
2. Etymology
3. VUCA world
4. Imperatives
5. Conclusions