The Internal Auditor – value added to both the Audit Committee and Management

1. Annual Conference The Internal Auditor – value added to both the Audit Committee and Management 7 November 2012

2. Value added by IA While ‘added value’ achieved through sales, support and production processes is more tangible ad relatively easier to establish, measuring ‘added value’ from internal audit is more intangible and more difficult to quantify. Conference Synopsis Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management

3. Value Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management

4. Business raison d'être Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management

5. Risk∝Cap rate Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management

6. Value ∝1/Cap rate Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management

7. Governance Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management

8. Board Committees • Audit Committee • Risk and Compliance Committee (proportionality) • Governance Committee • Remuneration Committee Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management

9. Role of the AC ...to add comfort to the Board in matters relating to financial reporting, regulatory compliance, internal controls and whistle-blowing Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management

10. ...Role of the AC (a) Monitor the financial reporting process; (b) Monitor the effectiveness of the company's internal control, internal audit where applicable, and risk management systems; (c) Monitor the statutory audit of the annual and consolidated accounts; (d) Review and monitor the independence of the statutory auditor or audit firm, and in particular the provision of additional services to the audited entity Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management

11. Role of management Management is the first line of defence against risks and is responsible for designing and implementing control procedures that mitigate unwanted risks... Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management

12. Role of the Risk Committee To assist the Board in its oversight of the company’s risks as necessary, the company’s risk management, the company’s risk tolerance, the company’s capital, liquidity and funding. Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management

13. The IA in Risk Management (IIA Research Foundation White Paper Mar11) Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management

14. The IA in Risk Management Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management

15. The IA in Risk Management Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management

16. The IA in Risk Management • Giving assurance on risk management processes • Evaluating risk management • Reviewing management of key risks • Setting risk appetite • Imposing risk management processes • Taking decisions on risk responses • Accountability for risk management Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management

17. Challenges of the IA Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management

18. The IA in Risk Management Does? Could? Should? The IA function add value through educating and appraising the risk management function, towards a lower risk, a lower cap rate and higher company value? Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management

19. Great Audience! Many thanks for listening  Annual Conference 2012 : The Internal Auditor Valued Added to Audit Committee and Management