IDF Grand for Internal Audit Capacity Building

1. IDF GrandforInternal Audit Capacity Building Ahmet BAŞPINAR Head of Department for Internal Audit CHU -TURKEY-

2. Audit Structure in Turkey Before 2004: • Audit units established in accordance with the Constitution • Audit units in Ministries • Audit units in Autonomous Institutions After 2004: • Internal Audit is involved in the Public Financial Management and Control System in addition to former audit units • Conflict of interest between internal audit & inspection bodies still exists

3. Activities Performed in terms of Internal Audit in Turkey -1 • Internal Audit Coordination Board was established (June 2004) • Internal Audit by-laws have been published: • By-Law on the Working Procedures and Principles of Internal Audit Coordination Board (October 2005) • By-Law on The Selection, Training and Certification of Internal Auditor Candidates (October 2005) • By-Law on the Working Procedures and Principles Of Internal Auditors (July 2006) • Communiqués on Internal Auditor Appointment Procedure have been published (September 2006, December 2006 and April 2009). • EU Twinning Project has been performed between the Turkish and French Ministries of Finance (March 2005-December 2006) • “Computer Assisted Audit Tools and Techniques” (CAAT) software has been tendered. (January 2006) • 804 internal auditors have been appointed in 210 public institutions and trained&certified.

4. Activities Performed in terms of Internal Audit in Turkey -2 • Internal control and audit guide for top managers • Internal audit standards • Internal auditor’s code of ethics • Internal audit charter • Internal audit reporting standards • Principles and procedures on scoring of internal audit certificates • Principles and procedures on common working procedures of internal auditors • Internal audit plan-program preparation guide • Risk assessment guide • Internal audit strategy paper (2008-2010) • Internal audit manual • Internal audit glossary and • Principles and procedures on cancellation of internal audit certificates have been published • Internal audit quality assurance manual • IT auditing guide for internal auditors have been drafted

5. Internal Audit Capacity Building Project • Title of the Project:  IDF Grant for Internal Audit Capacity Building • Grant Amount Approved (USD):  496,000 • Objective of the Project: Strengthen the capacity of the public sector internal audit in Turkey • Duration of the Project: 3 years (starting from March 16, 2009) • Components of the Project: • establishment of a quality assurance and improvement program • establishment of the continuous professional education scheme and preparation of training materials • development of the new internal audit strategy • on-site internal audit assignments in five selected pilot institutions with the support consultant firm/firms •  activities that would ensure improvement and maintenance of the systems for information-sharing and computer assisted audit techniques

6. Prospective IACB-WB Cooperationin the Future • More on-site IA assignments in pilot institutions with the support consultant firm/firms • Improving the established CPD scheme and preparation of more training materials • More information-sharing seminars-workshops • On-site QAIP assignments in pilot institutions with the support consultant firm/firms • Preparation of a IT AuditManual and on-site IT audit assignments in pilot institutions with the support consultant firm/firms • Improving the established CAAT scheme

7. Links for Public Internal Auditin Turkey • www.idkk.gov.tr • www.bumko.gov.tr • www.kidder.org.tr • www.icdenetim.org • www.denetimnet.net

8. THANKS FOR YOUR ATTENTION