Questionnaire to Internal Auditors

Transcription

1 Questionnaire to Internal Auditors Iceland, Finland, Sweden Björn Karlsson Grinde, Skatteverket Pirkko Nylund, Polisen Catarina Kvarnström Kemi, Jordbruksverket 1

2 Introduction Purpose Develope understanding of the conditions for internal auditors in the three countries Questionnaire - September 2016 Members of IIA, working in public sector Respons rate Fair 2

3 The organisations Results from the responses: The organisations (=the number of CAEs) 30 Swedish 22 Finnish 5 Icelandic Total 57 organisations Number of employees in your organisation? 33% 39% 28% > % Government agencies % single auditor functions 42% 2-5 auditors auditors 5% more than 10 1 person 2-5 persons 6-10 persons More than 10 persons 3 3

4 The respondents 102 responses 57 CAE, 45 other Iceland 10 Good Sweden 59 Fair Finland 33 low? Experienced Certified 59% hold some kind of certification

5 Audit process The Internal Audit function has an established, documented audit process, handbook, method, routine, etc. CAE 21% 79% Results from the responses: Most audit functions has an established and documented audit process. Created by the internal audit function is most common. No documented audit process more common in Finland (4) Sweden Finland Iceland 9 59% 5

6 Following IIA standards All 9% 13% 22% 53% Completely disagree Partly disagree Neither nor According to my opinion, our Internal Audit function, follow the IIA standards (IPPF) Do agree to some part Fully agree Sweden 14% 17% 1 59% Results from the responses: Finland Majority follows IIA standards. 9% 9% 45% 36% Iceland

7 Audit charter/instruction All The Internal Audit function has an Audit Charter/instruction The Audit Charter/instruction is approved by the Board/the Director General 95% 98% The Audit Charter/instruction is approved by other (specify?) 2% The Audit Charter/instruction is in accordance with the IPPF 79% The Audit Charter/instruction refers to the IPPF 67% The Internal Audit function has no Audit Charter/instruction Iceland Sweden Finland 87% 73% 5% 95% 86% 64% 5 7

8 Independence from operational activities Our Internal audit function is independent from the operational activities. Results from the responses: Majority says that the Internal audit function is independent from operational activities. Swe and Fin below 8 completely independent All 1 Completely disagree Partly disagree Neither nor Do agree to some part 2% 9% Fully agree 79% Sweden 13% 1 77% Completely disagree Partly disagree Neither nor Do agree to some part Fully agree Finland 9% 5% 9% 77% Completely disagree Partly disagree Neither nor Do agree to some part Fully agree Iceland 8

9 The internal audits possibility to act independent Direct access with Senior management/board Mandate to draw conclusion & make recommendations 3 2 SE: 98% FI: 82% IS: 97 Yes No Don t know 99 Yes No Don t know SE: 95% FI: 95& IS: 9

10 Our Internal Audit Function has a well-established process to handle conflicts of interests In total, all countries Yes 76% No 16% Don't know 11% Per country Sweden Finland Iceland Yes 95% 87% 8 No 2,5% 9% 1 Don t know 2,5% 4% 1 Heads of internal audit and auditors combined. 10

11 Expectations Results from the responses: Of the 57 organisations 77% (44 org) Performs internal Audits and Consulting/advisory engagements Unexpected answers: Organisation expects IA to perform internal controls 7% - 2 swedish, 2 finnish of 57 organisations IA function Performs internal control 18% - 4 finnish, 6 swedish of 57 organisations 11

12 Tasks performed by the internal audit function* In total, all countries Per country 5 15 INTERNAL AUDITS 98% INTERNAL CONTROL 2 Sweden Finland Iceland Internal audits 9 Internal control 1 37% 4 Consulting 93% 72% Other 4% CONSULTING/ADVISORY ENGAGEMENTS OTHER (SPECIFY) 2% 89% Other in Sweden concerns participation in security and fraud investigations * Only answers from auditors 12

13 Communication and reports Results from the responses: Observations are graded by a predefined scale. CAE Always use written audit reports 5% 47% 53% 95% Yes No Swe 49%, Fin 45%, Ice Yes No (please elaborate on your other ways to communicate) IA makes an assessment of the action plan in relation to the recommendations. Oral presentation, ppt 26% Yes 74% No Approving audit reports The CAE 54% The Board 27% Not formally approved at all 15% 13

14 Contents in Audit reporting Sweden Finland Iceland 47% 95% 6 77% 8 77% 73% 4 87% 95% % 4 55% 67% 97% 55% 8 36% Summary Purpose Observations Recommendations Action plan Decision on plan Summary Purpose Observations Assessment Recommendations Summary Purpose Observations Recommendations 14

15 General Audit Opinion Do the internal audit give a general audit opinion? Differences between the countries: Sweden and Finland 7 YES 3 NO Iceland: 2 YES 8 NO Yes 15

16 Yearly report The internal audit writes a yearly report Yes No 1 0,9 0,8 0,7 97 All three countries Sweden 95% 5% 0,6 Finland 85% 15% 0,5 Iceland 0,4 0,3 0,2 0,1 3 0 Yes No 16

17 Follow up process The Internal Audit function has a process to follow up on the recommendations given in audit reports. CAE 4% 96% Internal auditors Yes No Results from the responses: Majority have an follow up process. 7% 4% 89% Yes No Don t know 17

18 Implementation of the action plans Responsible for the implementation of the action plan is: Results from the responses: Most common that the top management or operational manager is responsible for the implementation. CAE 54% 7% 3 9% Iceland Sweden 3% 43% 47% 7% Finland In Sweden it is equally common that it s the top management or the operational manager. 2 9% 14% 14% In Finland and Iceland it is more common that the operational manager is responsible. 9% say CAE is responsible. 8 64% The organisations top management ( i.e the Board/the Director General) CAE Operational manager Other (specify) 18

19 Follow up of the action plans The follow up of the implementation of actions plans are done by: CAE 23% 5% 7% 35% Results from the responses: All countries follow up the action plan. Most common that the follow up is done by the internal audit function. 29% Ongoing monitoring by the Internal Audit function By the Internal Audit function when needed By the Internal Audit function after the actions are due to be implemented During regular ongoing reporting from the responsible unit The organisations top management ( i.e the Board/the Director General) No follow up 19

20 High risk acceptance CAE Has the Internal Audit function ever reported to the Board/the Director General that you believe their risk acceptance is too high? Results from the responses: 14 CAE has had issues regarding different risk evaluation Finland 7 Iceland 3 Sweden 4 2% 23% 75% Yes No Other; what? 20

21 Relations to the National Audit Office (Responses from the CAEs) How would you describe your cooperation with the National Audit Office, NAO (or equivalent)? Iceland Sweden Finland What is true about your relation and cooperation with the NAO? % % 2 73% % 27% 6 64% 2 23% 23% 21

22 Reputation of the internal audit function My opinion is that the Internal Audit function has a good reputation in our organisation. CAE 7% 9% 4% 35% 46% Completely disagree Partly disagree Neither nor Do agree to some part Fully agree Results from the responses: Majority thinks the Internal Audit function has a good reputation. Very strong reputation in Iceland, less strong in Finland and Sweden. Finland 9% 14% 9% 36% 32% Sweden 7% 7% 3 57% Iceland

23 Hire external consults If the internal audit function lacks resources or specific competence we are allowed to hire external consulting assistance? CAE 5% Results from the responses: Possibility to hire external assistance if needed. 95% Yes, we have that possibility No, we are not allowed 23

24 Education and certification PROPORTION OF CERTIFIED 76- POSSIBILITY TO STUDY FOR CERTIFICATION DURING WORKING h HOURS ORGANISATIONS PAYS FOR CERTIFICATION h (54%) YES 55% SATISFACTION WITH CONTINUOUS DEVELOPMENT YES 52% CONTINOUS DEVELOPMENT 0-1 <8 h YES 7 ENCOURAGEMENT FOR CERTIFICATION MY ORGANISATION PAYS FOR MY CONTINOUS DEVELOMPENT 11-25% Not at all Partly NO 15% PARTLY 31% NO 16% PARTLY 27% NO 12% YES 94% 2-3 D 4-8 Days/year Partly 8-12 D/Y >13 24