Leveraging Internal Audit Performance Planning Tools

1. Leveraging Internal Audit Performance Planning Tools John Hagan CIA, CMA, CGA, BAccS john.hagan@wd-deo.gc.ca November 2011 Institute of Internal Auditors Edmonton Chapter

2. Internal Audit Activity (IAA) Performance Planning The International Professional Practices Framework (the Framework / IPPF) 2000 & 2100 series establish Performance Standards for the Internal Audit Activity (IAA) as mandatory, namely IPPF 2000 � Managing the Internal Audit Activity (IAA) The chief audit executive MUST effectively manage the internal audit activity to ensure it adds value to the organization IPPF 2010 � Planning The chief audit executive MUST establish risk based plans to determine the priorities of the internal audit activity, consistent with the organization�s goals IPPF 2020 � Communication and Approval The chief audit executive MUST communicate the IAA plans and resource requirements, including significant interim changes� IPPF 2030 � Resource Management The chief audit executive MUST ensure that internal audit (IA) resources are appropriate, sufficient, and effectively deployed to achieve the approved plan

3. Why are we doing this IPPF 2040 � Policies and Procedures The chief audit executive MUST establish policies and procedures to guide the internal audit activity IPPF Interpretation for these �MUST� statements include: The IAA is effectively managed when� Charter purpose achieved, �IAA conforms with Definition of Internal Audit (IA), Code of Ethics & Standards The internal audit activity (IAA) adds value to the organization and its stakeholders when it provides objective and relevant assurance and contributes to the effectiveness and efficiency of governance, risk management, and control processes The form and content of policies and procedures are dependent upon the size and structure of the internal audit activity and complexity of work Thus, effective tools & techniques are needed to meet standards

4. The Challenge and Journey Value needs to be created by IAA in order to be recognized as contributors to achievement of corporate goals Stakeholders expectations should be managed or met So what has worked and could work better to meet IAA aim? �.Four Strategic business tools are leverage drivers since� Planning Tools drive Performance; and Performance Tools evaluate planning Leveraging the IAA tool elements is key to success