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Internal Audit Group

Corporate Governance The Implications for Internal Audit David Blunden M.Eng (Civil), M.B.L., C.P.Eng Assoc. Director Internal Audit Group RMIT University. Internal Audit Group. Corporate Governance. Outline of Presentation: Focus on issues related to Internal Audit

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Internal Audit Group

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  1. Corporate Governance The Implications for Internal Audit David Blunden M.Eng (Civil), M.B.L., C.P.Eng Assoc. Director Internal Audit Group RMIT University Internal Audit Group

  2. Corporate Governance • Outline of Presentation: • Focus on issues related to Internal Audit • Background - Corporate Failures • Corporate Governance Reviews • University Governance – The Council • Internal Audit Groups, Audit Committees • & management Internal Audit Group

  3. Corporate Governance • Background - Corporate Failures: • International • Enron, Worldcorp • Australian • National Safety Council, HIH, One Tel, • Ansett, Harris Scarfe Internal Audit Group

  4. Corporate Governance • Recent Reviews of Corporate Governance: • “Principles of Good Corporate Governance and Best Practice Recommendations”, Aust. Stock Exchange Corp. Gov. Council, March 2003 • “The Failure of HIH Insurance”, HIH Royal Commission, April 2003 Internal Audit Group

  5. Corporate Governance • Recent Reviews of University Governance: • “Meeting the Challenge – The Governance and Management of Universities”, DEST, Aug. 2002 • “Review of University Governance”, • Vic. Dept Ed.&T., May 2002 • “Review of New Zealand Tertiary Education Institution Governance”, M. of Ed., NZ Gov., May, 2003 • “Report of the Auditor-General on RMIT’s finances”, Vic. A-G, June 2003 Internal Audit Group

  6. Corporate Governance • Federal Budget – Additional Funding tied to Governance: • Council numbers restricted to 18 • Councilors as ‘trustees’, not representatives of particular constituencies • Formal program of professional development of Councilors • Restrictions on Council delegations • Industrial relations and student unionism requirements Internal Audit Group

  7. Corporate Governance • Council Issues Identified: • Independence of Councilors • Remuneration of Councilors • Non-delegation of primary responsibilities • Councilor Code of Conduct • Management information • Risk management Internal Audit Group

  8. Corporate Governance • Internal Audit Issues Identified: • Internal Audit function • Independence of Audit Committee • Effectiveness of Audit Committee • Audit Committee Charter Internal Audit Group

  9. Corporate Governance • Internal Audit Groups & Audit Committee • Effectiveness directly related to effectiveness of • the Audit Committee: • Independence • Skill set • Process management • Relationship with management • Annual Audit Program focus: • Strategic • Risk based • Management input • Flexibility Internal Audit Group

  10. Corporate Governance • In Summary: • A background of Corporate Failures • Corporate Governance Reviews • The makeup of University Councils • Implications for Internal Audit Groups • Where to now? … … Internal Audit Group

  11. Corporate Governance • A way forward: • Government focus on University Councils • Independence of Councilors • Effective Audit Committees • Internal Audit relationships – management & Council • “Effectiveness” of Internal Audit Internal Audit Group

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