European Regional Forum

Transcription

1 European Regional Forum Budapest, Hungary October 2014 Sylvia Gonner, Vice President, Global Relations Kevin Mayeux, Chief Officer and General Counsel Angela Witzani, Vice Chair, Professional Guidance, IIA Executive Committee

2 Agenda 1. A look at the Value of Affiliation 2. From Dubai to Budapest IPPF Relook Project Umbrella Global Advocacy Initiatives Strategic Planning Member Value Proposition 3. Other Project Updates Certifications CBOK 2015 Master Relationship Agreement (MRA) 4. Questions and Answers

3 The Value of your Affiliation

4 The Value of your Affiliation Core Benefits and Services (Funded by Institute Fees) Advocacy Guidance and Ethics Global Governance Institute Relations and Development Support services: Customer relations, membership, legal, accounting, marketing, website administration, IT Other Benefits and Services (Funded by other sources) Knowledge and Research Certifications International Conference And much more.

5 Advocacy The IIA s global advocacy strategy focuses on collaboration with Institutes to build relationships with key stakeholder groups at the national and international levels. Global Partnerships 1. International Federation of Accountants (IFAC) 2. Financial Stability Board (FSB) 3. International Integrated Reporting Council (IIRC) 4. Regulators/Listing Organizations 5. Organization for Economic Cooperation and Development (OECD) 6. International Organization of Supreme Audit Institutions (INTOSAI) 7. Association of Chartered Certified Accountants (ACCA) 8. Information Systems Audit and Control Association (ISACA) 9. Global Reporting Initiative (GRI) 10.International Organization of Security Commissions (IOSCO)

6 Advocacy Elevating the Profile of Internal Auditing Each year in May, The IIA, dozens of Institutes, and thousands of members around the world celebrate International Internal Audit Awareness Month. This year, 12 Institutes were recognized in the inaugural Building Awareness Champion program for exhibiting outstanding commitment to advancing the profession Champions IIA China IIA Costa Rica IIA Cyprus IIA Greece IIA Mauritius IIA Panama IIA Philippines IIA Qatar IIA Singapore IIA Slovenia IIA Swaziland IIA Turkey

7 Standards & Guidance The IIA sets the standard for how internal auditing is practiced around the world through the International Professional Practices Framework (IPPF) Maintaining the IPPF current The IIA released exposure draft outlining proposed enhancements to the IPPF Practice Guides Since 2009, there have been 41 Practice Guides released Practice Advisories Since 2009, there have been 62 Practice Advisories released Position Papers 3 have been published and translated into multiple languages Global Public Sector Insights Since 2011, there have been 8 insight reports released

8 Global Governance Global Council Allows all Institutes to have a voice in The IIA s strategic initiatives. 40 Institutes* offered funding to ensure their participation annually. *Showed proof of financial assistance needed.

9 Global Relations and Development Institute Relations Number of Institutes has tripled in the past 25 years (from 31 in 1990 to 106 in 2014) Members 106 Institutes 190 Countries Strongest growth in Africa, Middle East, Eastern/Central Europe

10 Global Relations and Development Relations with Regional Organization ACIIA, ECIIA, FLAI, UFAI New groups AFIIA and Arabic Group Capacity Building The 2014 African Workshop assisted 18 Institutes in better managing their operations. Additional capacity-building workshops in other regions to come in 2015.

11 Institute Services Global Website (launched in 2012) Advertise and review Institute conference, publications, services AuditChannel.TV (launched in 2012) Includes a channel dedicated to Institutes Institute Center (launched in 2013) To ensure that members can instantly benefit from services and discounts, the Institute Center was created to give Institutes 24/7 access to directly manage their membership records.

12 Institute Services Internal Auditor magazine (hard copy and online) Bulk subscription for Institutes available at cost Complimentary for Top Elected Officer and Contact Person 2 hard copies of each issue mailed Free access Ia Online on the new website ( and mobile app. Institute Libraries About 5000 books shipped free of charge to Institute libraries in the past 5 years.

13 Asset Protection One of The IIA s most valuable assets is our Intellectual Property (IP) and our Trademarks A total of 201 trademarks in 56 countries have been registered, providing legal protection to Institutes exclusive right to use IIA trademarks and IP.

14 Knowledge & Research There is a constant flow of cutting-edge knowledge available to Institutes and their members worldwide. Annual survey of trends and emerging issues in internal auditing 30 proposed deliverables expected from 2015 study

15 Knowledge & Research IIA Research Foundation publications and research reports IIARF published 13 free research reports in The latest releases are: Global Corruption Law Compliance Report: Insights from the Middle Market The Value of Quality Assurance and Improvement Programs: A Global Perspective Internal Audit Around the World: A Perspective on Global Regions Adapting Internal Audit to Organizational Governance: Best Practices of 9 Leading Organizations in Europe and the U.S. (Coming soon)

16 Certifications The IIA s global headquarters provides support to Institutes worldwide to manage certification programs that are efficient, relevant, and help to elevate professionalism of internal audit Two new Certifications launched! (CRMA and QIAL) Administration of the Candidate Certification Management System (CCMS) the system of record for all global certification activities. CCMS candidate-facing screens available in 11 languages (6-7 new in 2015) Launch of Institute Center reduced certification processing time from 14 days to 1½ days. Coming soon: Non-agreement Institutes will be provided with monthly certification reporting.

17 Update on various Global Council discussions From Dubai to Budapest Topic review What you told us What we did What is next

18 IPPF

19 What You Told Us What is the impact of potential changes to the definition or structure of the IPPF? 1. The opportunity to reflect changes in the profession itself and to address shortcomings of the current definition if it were shorter, simpler, and added focus on external stakeholders and the future of the profession. 2. Potential to negatively impact audit charters, legislation, and translations that would need to be updated and in some cases about the damaging perception that change itself can create. 3. Desire to have more industry specific guidance/standards and the need to better influence, educate, train, support, and inform audit committees.

20 What We Did 1. Proposed enhancements includes the addition of a Mission Statement to provide a clear and succinct description of what Internal Audit aspires to achieve within an organization. 2. Maintain existing definition of internal audit because it is fundamentally sound and currently recognized in legislation, regulation and statutes in various part of the world. 3. Restructure current Practice Guides to become Supplemental Guidance. Supplemental Guidance would be intended to address topical areas, as well as sector-specific issues.

21 IPPF Exposure Draft What has been exposed: Addition of: The Mission of Internal Auditing The Core Principles for the Professional Practice of Internal Audit Capability to produce Emerging Issues Guidance Introduction of: Implementation Guidance (to replace and enhance Practice Advisories) Supplemental Guidance (to replace and enhance Practice Guides) Removal of Position Papers from IPPF Renaming Key Elements: Mandatory to Required Strongly Recommended to Recommended

22 Help With the Exposure 1. Download the Exposure Document and share with your members and local community (See Toolkit with samples and documents in multiple languages) 2. Share the video with your members 3. Encourage your members to respond to the questions and comments that support answers 4. Remind your members that they can submit a separate comment letter if so desired 5. Feedback deadline: Nov. 3, 2014!

23 Next Steps 1. Taskforce meeting November to discuss exposure feedback and decide on each element 2. Make recommendation to Executive Committee and Board at Midyear on path moving forward 3. Implementation timeline dependent on conclusions

24 Project Umbrella

25 Project Umbrella Objective Provide a recommendation to the Board of Directors on the possibilities of The IIA expanding its services to address those members and other professional that are currently involved or will be involved in the 2 nd line of defense disciplines compliance, risk management, and internal control. Strategy B.3 Address the needs of different sectors within the internal audit or related professional activities.

26 What You Told Us 1. 76% indicated their Institutes provided some to extensive content in the area of risk management % indicated their constituents were interested more in the subject of risk management than compliance or internal control % stated The IIA should place a medium to high priority on investing in risk management content. 4. It is important for The IIA to invest in content that consisted of leading practices, benchmarking data, evaluation tools, and standards and guidance. Leading practices and evaluation tools rated the highest with 84% of the respondents indicating it was very important; standards and guidance rated next with 78% indicating it was very important; and benchmarking rated last with 69% indicating it was very important % of Institutes responding expressed interest in supporting the development of risk management content with time, money, or expertise.

27 What We Did Explored three potential options North American center of excellence for risk management Global center of excellence for risk management New international association for risk management and assurance professionals Held discussions with GELT and Executive Committee in London Concluded a Global Center of Excellence would provide the greatest longterm strategic impact, but must first demonstrate our in-depth knowledge of issues around risk Short-term: Create a global online risk resource site Long-term: Establish Global Center of Excellence for Risk Management

28 Project Umbrella Update Global Risk Resource Exchange Online resource similar to COSO model Access to global products and services Informative blogs and videos Training Conferences and events Publications and thought leadership Timely newsfeeds Benchmarking data Complementary outside resources relevant to risk management issues Target audience (Initial) Current CRMAs and IA Serving in Risk Management Roles

29 Next Steps Two-Phase Approach to Develop a Virtual Exchange Phase 1 Launch (4 th quarter 2014) Inventory of current IIA products and resources (HQ and Institutes) Identification of projects under development (HQ and Institutes) Website build-out Communication plan Phase 2 Support and Refresh (2 nd quarter 2015) Co-branding opportunities with Institutes Content review Identification of additional offerings, including external resources Newsfeeds and benchmarking tools in the form of information graphics

30 Advocacy Initiatives

31 Advocacy Strategy Collaborate globally to identify and confirm stakeholder needs/expectations, develop an advocacy platform, and identify and engage appropriate and influential bodies/organizations to advance the interests of the internal audit profession Global Strategic Plan: Goal C The IIA will have positively raised the profile of, and demand for, professional internal auditing, globally.

32 What You Told Us The Support you expect from IIA Global includes A visit by a global representatives rates as a top service IIA Global offers Institutes. Global leaders to speak at Institute conferences and visit with local stakeholders/influencers Channels for sharing and benchmarking best practices and lessons learned among Institutes Tools, resources, documents, videos, articles Updates on global initiatives with key targets IFAC, INTOSAI, IIRC More collaboration with associated organizations (ACIIA, Arabic Group, AFIIA, ECIIA, FLAI, UFAI)

33 What We Did 75 % of Institutes have been visited by a global representative in the last 5 years in support of their events and local advocacy efforts Representative from each Associated Organization holds a seat on the Global Advocacy Committee to enhance collaboration efforts.

34 What We Did NEW! Advocacy News Latest global advocacy efforts, toolkit, videos, responses to regulators, fact sheets, etc. Resources are continually added.

35 What We Did NEW TOOLS! Updated Branding Guidelines (Manual) and PPT/letterhead templates Create a standard PPT presentation about The IIA for use by Institute leaders

36 Advocacy Updates Recognition Engagement Awareness Submitted business case to FSB for inclusion of IIA Standards in Compendium of Key Standards Hold seat on IIRC to influence IA role around assurance of <IR> Participated in Phase I of OECD Study on the Role of SAIs in Fostering Good Governance Richard Chambers addressed IFAC s Board of Directors. Established work plan to with IFAC that identifies initiative to further engagement and collaboration efforts outline in an updated MoU Opened discussions with ACCA to identify collaborations opportunities. Richard Chambers addressed the delegates of INTOSAI s INCOSAI event in Beijing. Executed updated MoU with INTOSAI s Professional Standards Committee.

37 2015 Strategic Planning

38 Strategic Planning Overview Purpose: Internal Auditors from around the world met to discuss the path for The IIA over the next five years. The group discussed updating the 3 to 5 year planning horizon including drafting goals, strategies and indicators of achievement. The group met August 2014 in Orlando, Fla, US. 31 Attendees 70% Volunteers + 30% IIA HQ Staff and Institute Paid Staff Regional representation: Africa: 10%, Asia/Pacific: 10%, Europe: 29%, Latin America: 3%, North America: 24%, Global HQ: 24%

39 1. Be more proactive and visionary. What You Told Us 2. Engage outside stakeholders in strategy development. 3. Incorporate feedback and perspectives from members at the grassroots level because they have direct knowledge of the needs of the organization they serve. 4. More alignment and partnership among IIA Institutes is needed in developing the plan to better balance local and global needs. 5. Create awareness for the profession and proactively lead through the development of insights.

40 What We Did 1. Explored broader issues and trends globally with an invited Futurist 2. Included external perspectives: from stakeholders, Audit Committee Chair input from global advocacy partnering organizations 3. Provided session participants with preliminary, pre-read information to review prior to attending strategic planning sessions. 4. Invited global leadership representing 17 Institutes to ensure goals were strategic, relevant and in support of a more collaborative focus. 5. Conducted a pre-session survey, Global Internal Audit Priorities, from which findings will be leveraged to support goal prioritization.

41 Progress to Date During the Strategic Planning Session: 1.The IIA s Core Purpose was evaluated 2.The Core Values were evaluated 3.The Vision was evaluated 4.Five strategic goals were drafted 5.Potential measurements for success were discussed

42 Next Steps 1. The strategic plan will be shared with the Executive Committee for approval in October The Executive Committee will recommend the approved strategic plan for approval by the global board of directors. 3. Defining the appropriate role Institutes play in executing the strategic plan 4. Developing implementation approach for the approved strategic plan 5. Strategic plan implementation

43 Member Value Proposition

44 What You Told Us Gave input on the Definition of Minimum Service and Benefits to members Expressed concern over the availability of services to members in some parts of the world Highlighted lack of resources, tools, and support* (primarily form volunteeroperated Institutes) Confirmed that IIA Global should continue to focus on developing institutes and serving as a knowledge center and broker Requested a tool for Institute Leaders to continue to network online *We learned that many services, resources and available support are not known to Institute leaders

45 What We Did 1. Filled all the open positions in the Global Relations Team Total of 5 staff multilingual and multicultural staff 2. Created a Communication Strategy: Enhanced the induction of new Leaders Quarterly Institute Briefings Improved content and layout of Global Leaders Link Added Did you Know to Global Leaders Link to highlight existing resources Global Connections newsletter delivered directly to member upon request Institute Value Proposition campaign started Added Toolkits to Institute Leader Website

46 Next Steps COMING SOON! Restructured Institute Leaders Website More user-friendly with archives by topic More resources Enhanced onboarding/induction of new leaders (and existing ones!) via online videos and teleconferences with Institute Relations staff Share repository of 100 membership retention and recruitment tips LinkedIn Group dedicated to Institute Leaders Only.

47 Alternative Member Servicing Model 1. Moratorium on the formation of new Institutes in place since March 2013 More than 30 groups waiting. 2. Many small, newer Institutes struggling to build stable, sustainable Institute, deliver minimum service to members, meet formation requirements. 3. New Model under development. Concept approved by the Executive Committee in July. Business plan under development. 4. Concept: Greater partnership between global and local chapter to deliver minim services to members immediately while allowing time to build local infrastructure and necessary reserves. 5. Expected launch in 2015.

48 Certification Update

49 Qualification in Internal Audit Leadership (QIAL) Marketing materials added to Institute Leader Resources section of the global website MRA Addendum (under development) Outlines 3 participation tiers Promotion minimum required level Cooperation provide computer/web ex services for candidates that do not have access for case studies, panel interviews and presentations. Partnership manage candidate panels Each tier has certain requirements Legal review in process and will share with Institutes once it is approved

50 QIAL Applications Applications Applications in Process

51 Practice Exams (new service) English and Japanese languages launching in 4 th quarter 2014 Candidates will have to register and pay through CCMS in order to gain access to the practice exams Not diagnostic but simulate the actual PV test environment Other languages will launch in 2015

52 Certification Reports (new service) Institute leaders will have access to 4 monthly reports that will be ed to the contact person who will then forward to the person responsible for promoting certifications The 4 reports are: Candidate Demographic Data All demographic data for a candidate (name, address, , telephone, etc.) Exam Status Report Details EXAM level status for a candidate (eligible, registered, exempt) Newly Certified Report Details candidates who have achieved certified status in one of the certification programs for the previous quarter Program Status Report Details PROGRAM level status (applied, approved, inactive, etc.) for a candidate Planned launch: 4 th Quarter 2014

53 Part One Stand Alone (POSA) - NEW Not a certification, instead will be considered a designation No printed certificate E-certificate and badge Valid for 2 years with one 2-year extension 6 months experience required to receive designation Title: Internal Audit Specialist (to be approved) Requires Executive Committee and Board of Directors approval Planned launch: 1 January 2015

54 Part One Reciprocity - NEW Only for those local programs that have been approved by the Professional Certifications Board and Board of Directors Initial application and then annual renewal Program will be evaluated on a number of items including o Rigor of exam development process o Process of item validation and replacement o CPE requirements If approved, candidates will have to apply for Part 1 (much like Part 4 credit) Requires Executive Committee and Board of Directors approval Planned launch: 1 January 2015

55 Guidelines for Approved CPE Providers - NEW Includes Institutes and third parties Establishes guidelines for CPE s which will be automatically accepted for global IIA Certifications Guidelines around what counts as a CPE (# of minutes), preparation, marketing, instructor qualifications Requires linkage to the Competency Framework Streamlines reporting for candidates that are selected for audit Eventually, approved providers will be able to report into CCMS directly as file upload Launch 1 February 2015.

56 ACCA Challenge Exam Global Advocacy Committee met with Association of Chartered Certified Accountants (ACCA) in September 2013 Discussed collaboration opportunities ACCA has 48,000 members engaged in internal audit worldwide Professional Certifications Board approved request to offer a challenge exam based on the submission of a formal proposal in August 2014 What is a Challenge Exam? a single exam, one-time offer, restricted to ACCA certified members customized to eliminate knowledge, skills and abilities already demonstrated and focus on knowledge specific to internal audit

57 ACCA Challenge Exam Why do it? Primarily an advocacy effort Enhance knowledge of our Standards for chartered accountants practicing internal auditing Opportunity for Membership growth Who is affected Primary European countries: UK, Czech Republic, Greece, Switzerland How it would work? Availability: 1 Month exam window May 2015 (proposed) Location: PearsonVue sites using CCMS Package: Bundled application, registration, certification fees, customized training, membership in local Institute

58 The Global Internal Audit Common Body of Knowledge (CBOK)

59 What You Can Expect From CBOK Now available! Will be available in 25+ languages! Protiviti recognized as strategic partner

60 Master Relationship Agreement

61 MRA Deadlines and Process Master Relationship Agreement MRA Form must completed with information to customize your MRA Two copies of MRA being mailed via post to your Institute for signature DEADLINE: Sign and return 2 copies by mail by no later than 1 December IIA Global HQ to sign and mail one copy back for Institute Records Effective 1 January 2015, all current agreements will become null and void.

62 MRA and Addenda MRA 2 copies (delivered and returned by mail) must be received by December 1 Effective 1 January 2015, all current agreements will become null and void. Addenda: MANDATORY CERTIFICATION (Institutes must select one) Addendum A Certification Promotion Agreement Addendum AA Certification Administration Agreement Addendum B Global Training Marketplace Agreement Addendum C Audit Executive Center Agreement Addendum D Published Works Agreement Addendum E Reprint and Translate Ia Magazine Agreement Addendum EE Volume IA Magazine Subscription Addendum F Research Foundation Promotion Agreement Addendum G Quality Services Partnership Agreement Addendum GG Quality Services Agreement

63 Save the date. GLOBAL COUNCIL APRIL BEIJING, CHINA

64 Questions - Comments

65 Sylvia Gonner, Vice President, Global Relations Kevin Mayeux, Chief Officer and General Counsel