Transcription of COSO’s Internal Control – Integrated Framework
1 MARCH 2015 AUDITORMIDDLE EASTINSIGHTS ON GOVERNANCE, RISK MANAGEMENT AND CONTROLKey Considerations and Tips for Auditing Construction ProjectsThe Importance of Internal Audit s Role in Corporate Governance Selected Techniques to Market Internal Audit Services to StakeholdersIA Internal AUDITOR - MIDDLE EAST MARCH 2015 | - COSO s Internal Control Integrated FrameworkCOSO s Chairman emphasizes the applicability of the Framework for companies in the Middle EastRisk AssessmentControl ActivitiesEntity LevelOperating UnitDivisionFunctionInformation & CommunicationMonitoring ActivitiesControl EnviornmentReportingComplianceOperations 2015 Thomson Reuters. All rights YOUR Internal AUDIT PROCESSES FOR MORE EFFICIENCYACCELUS AUDIT MANAGERI nternal audit is being asked to evolve beyond the third line of defense or ticking regulatory boxes.
2 Boards and senior management now value the insight and analysis that a strong audit function can Audit Manager can help:CONNECT | SIMPLIFY | PERFORM Liberate audit teams from manual tasks Enrich your dialogue with the business Drive enhancement of audit qualityFor more information on Accelus Audit Manager please visit: Deepen engagement with your board audit committee Contribute to business operational excellence Improve identification of emerging risksINTERNAL AUDITOR - MIDDLE EAST 1 MARCH 2015We re off to a Good Start! Dear Readers,I am pleased to announce that the UAE Internal Audit Association (UAE-IAA) is off to a good start this year.
3 We teamed up with the Association of Certifi ed Fraud Examiners (ACFE) in the UAE and KSA to launch the ACFE s fi rst conference in the Middle East & North Africa region which had the theme of Breaking the Barriers . We ve also been strengthening our relationships with the other Internal audit institutes in the GCC and hopefully we ll be exploring further areas of cooperation. Similarly, we ve been meeting with various government and semi-government institutions in the UAE to promote the training of UAE nationals in the Internal audit profession. More achievements and success are planned for 2015. Not only have we achieved all the above, but in the past few months, we ve accomplished 3 strategic milestones which will positively impact our profession: 1.
4 Internal Audit Quality Assurance: We ve hired a highly experienced Internal audit professional who will lead the UAE-IAA s eff orts to promote Internal audit quality assurance and to provide our members with an objective and value adding service. We will work to strengthen our capabilities in this area and will aim to rely on qualifi ed resources based in the UAE. 2. Internal Audit Research: Th anks to the eff orts of volunteers and the cooperation of our members we ve been able to produce original research aimed at providing out members with insights on our profession. Th e research titled Risk Management Practices and the Role of Internal Audit: A UAE Perspective on Non-Financial Institutions is an insightful and professional report which should make us all proud.
5 3. Qualifi cation in Internal Audit Leadership Training: Th e Institute of Internal Auditors delivered a training program to potential assessors in the UAE who hold the Qualifi cation in Internal Audit Leadership (QIAL) designation. Th is is the fi rst step towards activating the UAE-IAA s role as the exclusive provider for the QIAL exams in the Middle East & North Africa region. We owe all this success to the active and continuous support of our strategic partners, members and volunteers. I hope you all enjoy reading this issue. Please feel free to email any feedback you may have to Sincerely,Abdulqader Obaid AliPresident From The PresidentCOVER IMAGE: 2013, Committee of Sponsoring Organizations of the Treadway Commission (COSO).
6 Used by 2014 Wolters Kluwer Financial Services, Inc. All Rights Reserved. 3642 TeamMate AnalyticsData analysis for every auditIntegrates with TeamMate Audit Management System and available for standalone useLearn more at call +44 207 981 0556 Analytics advert ME 276 x 105/11/2014 15:13:21 Internal AUDITOR - MIDDLE EAST 3 MARCH 2015 Internal AUDITORMIDDLE EASTMARCH 2015 COVER STORY: COSO s Internal Control Integrated Framework COSO is the most widely used Internal Control Framework in the world and it is time for companies in Middle East to make use of it. BY ROBERT HIRTH20 Auditing Construction Projects Whether it is a villa or a tower, there are several major risks to be audited during each phase of a construction project.
7 BY HAKIM LALIPURWALA 4 Reader Feedback 5 Knowledge Update KPMG s Audit Committee Survey; COSO and Cyberse-curity; Performance Auditing Research; VISHAL THAKKAR8 UAE-IAA Events 10 IT Audit A digital future can only be achieved if companies have trust in their data and KONSTANTINOS TAKOS 12 Conversations with Colleagues Karl Hendricks talks about what Internal audit leader-ship really means. BY MEENAKSHI RAZDAN 26 Marketing Internal Audit Services Promoting the services of the Internal audit department should be a priority for Chief Audit Executives. BY ALA ABU NABA A15 Human Resources Internal auditors must have very good skills when it comes to dealing with people. BY DR. KHALAF ALWARDAT29 Risk Management How Internal auditors should respond to emerging risks in the banking sector.
8 BY TAUSEEF ABDUL GHAFFAR22 The Evolving Role of Internal Audit in Corpo-rate GovernanceHawkamah s CEO discusses the important that Internal audit plays. BY DR. ASHRAF GAMALMARCH 20154 Internal AUDITOR - MIDDLE EAST UAE Internal AUDIT ASSOCIATION BOARD OF GOVERNORSA hmed Al Ansari; Khalid Al Halyan; Mohamed Al Harthi; Abdulqader Obaid Ali; Naseeba Alrais; Ayesha Bin Lootah; Naeima Mohammed Al Menhali; Ali Al Muwaijei; Nahla Al QassimiEXECUTIVE COMMITTEERaza Abdulla; Abdulrahman Al Hareb; Arindam De; Karl Hendricks; Rustom S. Kreidly; Karem Obeid; Harsh Mohan; Robert Noye-Allen; Fadi Sidani; Rabi Youssef; Adnan ZaidiGENERAL MANAGERS amia Al YousufTEAMA isha Akhtar; Yasmine Abd El Aziz; Ghada Abd Elbaky; Bassam El Baghdadi; Mohammed Jouda; Youssef Lutfi; Aileen pelagio; Ninad pradhan; Zeehan ShaikhReader FeedbackINTERNAL AUDITORMIDDLE EASTUAE Internal Audit Associationan IIA Global affiliateWe want your views on the articles and the magazine!
9 Share your thoughts and feedback with us via email at PRESIDENTA bdulqader Obaid AliEDITORF arah Araj (Acting)EDITORIAL ADVISORY COMMITTEE Asem Al Naser, CpA, CIA, QIAL; Farah Araj, CpA, CIA, CFE, QIAL; Majed Bukhashem; Andrew Cox, MBA, MEC, CFIIA, CIA, CISA, CFE, CGAp, MRMIA; Raymond Helayel, CpA, CIA; Meenakshi Razdan, CA, CpA CIA, CFE; Hossam Samy, CRMA, CFE, CpA, CGA; Nagesh Suryanarayana, MBA, CIA,CCSA; James Tebbs, CA; Vishal Thakkar, ACA, CIA; Issam Zaghloul, MSc, CISA, CISSp, CGEITARABIC REVIEW TEAMA yman Abdelrahim, MQM, CIA, CCSA, CFE; Khalid M. Alodhaibi, SOCpA; Qais Hamdan, CISA, CISM, pMp; Noora Ayoob; waleed Sweimeh, CIAMARCH 2015 VOLUME 2015: 1 CONTACT INFORMATIONADVERTISING & ADMINISTRATIONY asmine Abd El Aziz Tel: +971 4 433 9082 EDITORIAL Farah Araj +971 50 850 1780 DESIGN & PRINTING Girish MehtaAdventure Global + 971 4 393 7696 ARABIC TRANSLATION & LAYOUTH ossam SamirElaph Translation +971 4 331 0332 GUIDELINES FOR DISCLAIMERSI nternal Auditor Middle East is intended only for members of the Institute of Internal Auditors in the Middle East and as such it is not intended to be sold or re-sold by any party.
10 The views expressed in Internal Auditor Middle East are solely those of the authors, and do not necessarily represent the views of the UAE-IAA or the authors respective employers. Internal Auditor Middle East is a peer-reviewed magazine and does not verify the originality of the content submitted by the authors. Internal Auditor Middle East is published quarterly by the UAE Internal Audit Association (UAE-IAA), Office 1503, 15th Floor, ApI Trio Tower, Dubai, United Arab EmiratesCOMPLIMENTARY TRANSLATION PROVIDED BY:Project Risks & Controls Th e article Project Controls: More than Just a Box Ticking Exercise (December 2014) was very informative and gave good insight into the various controls required for eff ective project management.
