1. The main roles of IA from assurance to advise
PEM PAL
IA COP
Audit in Practice Working Group
The main roles of IA from assurance to advise
Dragos Catalin Niculae
Skopje
The 08th of April 2019

2. SUMMARY A. Assurance services Definition Implementation Standards
Particularities
B. Consultancy services
C. Comparative analysis

3. Assurance Services. An objective examination of evidence for the purpose of providing an independent assessment on governance, risk management, and control processes for the organization.
(IIA Glossary from INTERNATIONAL STANDARDS FOR THE PROFESSIONAL PRACTICE OF INTERNAL AUDITING )

4. Assurance Services Attribute Standards Performance Standards
1000 Purpose, Authority, and Responsibility
1110 Organizational Independence
1111 Direct Interaction with the Board
1112 Chief Audit Executive Roles beyond Internal Auditing
1130 Impairment to Independence or Objectivity
1210 Proficiency
1220 Due Professional Care
Attribute Standards
Performance Standards
2010 Planning
2110 Governance
2120 Risk Management
2130 Control
2201 Planning Considerations
2210 Engagement Objectives
2220 Engagement Scope
2240 Engagement Work Program
2330 Documenting Information
2410 Criteria for Communicating
2440 Disseminating Results
2500 Monitoring Progress

5. 1. Involve the internal auditor’s objective assessment
2. Provide opinions or conclusions regarding an entity, operation, function, process, system, or other subject matters
3. The nature and scope of an assurance engagement are determined by the internal auditor
4. Three parties are involved:
a. the process owner (person or group directly involved with the entity, operation, function, process, system, or other subject matter)
b. the internal auditor (the person or group making the assessment)
c. the user (the person or group using the assessment)
Assurance services

6. Consulting Services. Advisory and related client service activities, the nature and scope of which are agreed with the client, are intended to add value and improve an organization’s governance, risk management, and control processes without the internal auditor assuming management responsibility.
(IIA Glossary from INTERNATIONAL STANDARDS FOR THE PROFESSIONAL PRACTICE OF INTERNAL AUDITING )

7. Consulting Services Attribute Standards Performance Standards
2010 Planning
2120 Risk Management
2130 Control
2201 Planning Considerations
2210 Engagement Objectives
2220 Engagement Scope
2240 Engagement Work Program
2330 Documenting Information
2410 Criteria for Communicating
2440 Disseminating Results
2500 Monitoring Progress
Performance Standards
1000 Purpose, Authority, and Responsibility
1130 Impairment to Independence or Objectivity
1210 Proficiency
1220 Due Professional Care

8. 1. Are advisory in nature and are generally performed at the specific request of an engagement client.
2. The nature and scope of the consulting engagement are subject to agreement with the engagement client.
3. Two parties are involved:
a. the internal auditor (the person or group offering the advice )
b. the engagement client (the person or group seeking and receiving the advice )
Consulting services

9. Assurance services Consulting services
Specific request of engagement client
Trigger factor
Internal Auditor assessment
Nature and scope
Determined by auditor
Agreed with engagement client
Result
Opinions and conclusions
Advisory activity and added value
Parties 3 2

10. Romania experience - Consulting service
Mioara Diaconescu
Director CHUPIA-Romania

11. Romania experience - Consulting service
The IAs are reticent to use this type of engagements
Informal consulting missions (not formalized) – especially at the local administration (Fireman method)
Meetings
Telephone
Compartimentele de Audit sunt reticente sa foloseasca acest tip de misiune pt ca apare un paradox. Managerul nu stie ce sa ceara (nu are cunostinte cum sa folosesasca auditul) iar auditorul intern nu stie ce sa livreze nefiindu-I clara solicitarea. Ca sa se evite aceste neclaritati se foloseste cel mai mult consilierea informala. In administratia publica locala in anul nu s-a formalizat nici o misiune de consiliere. Consilierea s-a facut dar punctual, la telefon, face to face, cu solutii punctuale si imediate. Este ca activitatea unui pomiper, stige focul cand apare insa nu stinge cauza care procduce incendiul

12. Romania experience - Consulting service
Internal Auditors refuse to be involved in
the consulting engagements

13. Romania experience - Consulting service
Why?
Restrictions for audits - standards
Not sufficient knowledge for Internal Auditors; difficulties to find the appropriate solutions
De apt

14. Romania experience - Consulting service
Misinterpretation of the standards - not be involved in auditable actions
No solutions for management
Loss of management trust
„We don’t need audit”
Audit=control – no solutions for management

15. the design of systems, elaboration
List of questions for Panel discussions
The Internal Auditors can be involved in the
the design of systems, elaboration
of procedures, etc ?
2. Formal versus informal consulting

16. Thank you for your attention!