IIA-Ethiopia Newsletter
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1 IIA-Ethiopia Newsletter Progress through Sharing Informing & Educating IIA-Ethiopia Institute Members SPECIAL ISSUE VOLUME I NUMBER 6 May, 2016 THE GLOBAL PRESIDENT S MESSAGE ON THE 75 th ANNIVERSARRY OF IIA ( ) The story of The Institute of Internal Auditors (IIA) began in 1941 when our founders met in New York City. There, modern internal auditing got its start with the motto The IIA lives by today, Progress Through Sharing. For 75 years, The IIA has guided the internal audit profession, serving as a catalyst for the profession s advancement and evolution. In the beginning, internal auditors offered hindsight a look into an organization s missteps and how it might avoid those mistakes in the future. Internal auditors eventually began to offer insight an appreciation and understanding for why and how something happens. Now, we ve evolved into a profession that offers foresight a strategic look forward that anticipates the challenges and opportunities that lie ahead. Today, we are the trusted advisers of senior executives and stakeholders who rely on us to provide them with the understanding they need to make the right decisions, at the right time. Throughout its history, The IIA has provided dynamic leadership, guidance, and education for the internal audit profession, thereby empowering practitioners to provide value and the highest quality services for their organizations. We now have more than 180,000 members in more than 170 countries and territories. Internal auditing has evolved into a truly global profession, and The IIA s success reflects our members professionalism, integrity, and ingenuity. In the future, in partnership with members, volunteers, and institutes, The IIA will continue to raise the profile of and demand for internal audit, to ensure its position and reputation as an independent assurance provider that is indispensable to organizations, their stakeholders, and the public. In honor of The IIA s 75th anniversary, I invite you to learn more about the internal audit profession and find out how your organization is utilizing this important function. Please visit us online at globaliia.org. Warm regards, Richard F. Chambers, CIA, QIAL, CGAP, CCSA, CRMA President and Chief Executive Officer, The Institute of Internal Auditors 10 Key Milestones in the History of IIA Global The IIA s story begins in 1941, when John B. Thurston, Robert B. Milne, Victor Z. Brink and others gathered at the Williams Club in New York City for the first organizational meeting. Thurston would be elected as the first president, the position now known as the chairman of the board. In 1942, the first chapter is formed, in New York City, and the first IIA conference is held, at the Biltmore Hotel, also in New York City. In 1944, The IIA expands beyond the United States, with a chapter formed in Toronto. Also, the journal Internal Auditor is first published. In 1955, Progress Through Sharing becomes The IIA s official motto. 1
2 In 1964, The IIA Board approves the first affiliate on the African continent, in South Africa. In 1968, The IIA s Code of Ethics was approved. In 1974, to identify and acknowledge highly qualified internal auditors, The IIA offers the Certified Internal Auditor (CIA) exam for the first time, delivered in 41 locations to 654 candidates. Since then, more than 167,000 professionals have earned the certification. In 1978, to address a need for new tools and standardized guidance, the Standards for the Professional Practice of Internal Auditing is approved. On December 16, 2000, IIA Ethiopia was officially recognized as an affiliate of The Institute of Internal Auditors. In 2009, the first International Professional Practices Framework (IPPF) is published. Also, the first International Conference in Africa is held, in Johannesburg, South Africa. The Current IIA Certifications The IIA is the only certifying body for the profession of internal auditing. In addition to offering the only internationally accepted designation for the profession, The Certified Internal Auditor (CIA), The IIA offers five speciality designations to further distinguish qualified practitioners. IIA certifications is available through computerbased testing, allowing candidates to test yearround at approximately 500 locations worldwide (1 in Ethiopia). Registration is completed through The IIA s online Certification Candidate Management System (CCMS). A short description for each certification is given below The Certified Internal Auditor (CIA ) designation is the only globally accepted certification for internal auditors and remains the standard by which individuals demonstrate their professionalism in the internal audit field. Candidates leave the program enriched with educational experience, information, and business tools that can be applied immediately in any organization or business environment. The Certification in Control Self-Assessment (CCSA ) designation is an esteemed certification for control self-assessment practitioners. It measures a candidate s knowledge of important CSA fundamentals, processes, and related topics such as risk, controls, and business objectives. It is the standard by which individuals demonstrate their comprehensive professionalism in the field. The Certified Financial Services Auditor (CFSA ) measures an individual s knowledge of audit principles and practices within the banking, insurance, and financial services industries. Candidates may choose any one of these disciplines when taking the exam, regardless of their current occupational field. The CFSA is a respected certification for practitioners of financial services auditing. The Certified Government Auditing Professional (CGAP ) certification program was designed especially for auditors working in the public sector at all levels federal/national, state/provincial, local, quasi-governmental, or crown authority. It is an excellent professional credential that prepares and qualifies practitioners for the many challenges they face in this demanding arena. The Certification in Risk Management Assurance (CRMA ) program has been designed to allow audit practitioners and others interested in risk management assurance to demonstrate their ability to provide advice and assurance to audit committees and executive management on whether key risk management and governance processes in their organizations are in place and effective. 2
3 (QIAL ) Qualification in Internal Audit Leadership designation provides with the opportunity to demonstrate the key leadership competencies valued by executives and stakeholders resulting in greater credibility. The IIA has launched the enhanced IPPF (International Professional Practices Framework) effective July (For more information on certification visit The IIA s website at IIA Certifications Statistics The IIA has issued statistics of the total number of candidates certified as at December 31, The following tables show the snapshot: By Region (number) Africa 4,926 Asia Pacific 67,349 Caribbean 77 Central/ South America 2,782 Europe 19,181 Middle East 4,398 North America 63,233 No country (private) 5,296 Total World 167,242 By Certification Type (number) CIA 134,833 CCSA 6,952 CGAP 4,287 CFSA 6,445 CRMA 14,410 QIAL 141 Internal Audit Practitioner 124 Total 167,242 Ethiopia (number) CIA 57 CCSA 8 CGAP 4 CFSA 1 CRMA 1 Total 71* *The list of certified IIA Ethiopia members is attached as an annex. The IIA Launched the Enhanced IPPF The updated IPPF helps guide auditors through change and ever-growing challenges. A brief description of each element follows: Mission Statement To enhance and protect organizational value by providing risk-based and objective assurance, advice and insight. Core Principles Demonstrate integrity Demonstrate competence and due professional care Is objective and free from undue influence (independent) Aligns with the strategies, objectives, and risks of the organization Is appropriately positioned and adequately resourced Demonstrates quality and continuous improvement Communicates effectively Provides risk-based assurance Is insightful, proactive, and futurefocused Promotes organizational improvement Mandatory Guidance Conformance with the principles set forth in Mandatory Guidance is required and essential for the professional practice of internal auditing. The mandatory elements of the new IPPF are the core principles, the International standards for the 3
4 Professional Practices of Internal Auditing (standards), the definition of Internal Auditing and the Code of Ethics. Recommended Guidance Recommended Guidance is endorsed by the IIA through a formal approval process. It describes practices for effective implementation of the Definition of Internal Auditing, Code of ethics and Standards, as well as the new Mission Statement. The two elements of Recommended Guidance under the new IPPF are Implementation Guidance and Supplemental Guidance. Implementation Guidance Implementation Guidance, an expanded, more comprehensive suite of guidance to replace Practice advisories, assists internal auditors in achieving conformance with the standards. Supplemental Guidance Supplemental Guidance provides detailed guidance for conducting internal audit activities. It includes topical areas and sector-specific issues, as well as processes and procedures, tools and techniques, programs, step-by-step approaches, and examples of deliverables. Effective with the July 2015 launch of the enhanced IPPF, all Practice Guides, Global Technology Audit Guides (GTAGs), and Guides to the Assessment of IT Risk (GAITs) automatically become part of the Recommended Supplemental Guidance layer. (For more information on the IPPF, visit The IIA s website at Donation of Books to IIA Ethiopia Ato Wolderuphael Woldegiorgis, Founder, Long serving ex-secretary and Life Time member of IIA Ethiopia donated 36 books to the library of the Institute. Ato Samuel Assefa President and Ato Temesgen T.Mariam, V/Pressident of the Institute were present during the event. According to Ato Wolderuphael the books he has donated were acquired during his internal audit study for MSc abroad and purchased from IIA international conferences book sales. IIA Ethiopia extends its warm gratitude to Ato Wolderuphael for his exemplary and generous gift and believe that this donation will encourage other members to follow his example. Training Conducted by IIA Ethiopia As part of the Institute s Continual Professional Education (CPE) program, IIA Ethiopia has conducted 15 trainings since August Except the training on the introduction to International Financial Reporting standards (IFRS) which was offered by the Accounting and Auditing Board of Ethiopia, all the other trainings were given by IIA members. IIA Ethiopia is grateful to the Board for providing volunteer training service on this important and current topic to IIA members. IIA Ethiopia also extends its gratitude to the volunteer trainers namely Ato Samuel Assefa (4 trainings), Ato Samuel Ademe (2 trainings), Ato Temesgen T.Mariam (2 trainings), W/O Kokeb Ashame (2 trainings), W/O Seble Abera (1 training), Ato Bereket Yoseph (1 training) and Ato Kollele Tessema (1 training). The number of trainings has been increasing from time to time and IIA Ethiopia has planned to conduct one training each month. The number of participants also is increasing and has reached an average of 85 attendees. Publications of IIA Global 4
5 The following are major publications of IIA Global for members: The Internal Auditor Magazine - Internal Auditor is the world s leading publication printed by the Institute of Internal Auditors six times a year, namely in February, April, June, August, October, and December. In its effort to disseminate the latest auditing information, knowledge, and skills to its CIA members, IIA- Global has a bulk subscription service at a discount price. Global connections - is The IIAs new quarterly global newsletter distributed by to members. Institutional and Individual Members To date, there are twenty three (23) Institutional and 189 active individual IIA-Ethiopia members. The Institutional members are: Addis International Bank, Buna International Bank, Commercial bank of Ethiopia, Dashen Bank S.Co., Defense Construction Enterprise, Ethiopian Electric Light, Ethiopian Electric Utility, Ethiopian Airlines, PPESA, Ethiopian Red Cross Society, Ethio Agri-CEFT Plc., Ethiopian Insurance Corporation, Ethiopian Shipping and Logistics Service, Ethiopian Sugar Corporation, Ethio Telecom, Kality Construction Materials, MIDROC Ethiopia Technology Group, Moha Soft Drinks, National Bank of Ethiopia, Nib Insurance Company, Nib International Bank, Oromia International Bank, and Wegagen Bank. Individual members are selected on the basis of their university credentials and practical experience in the field of internal auditing and related disciplines. Ethiopians and other foreign residents satisfying these requirements are accepted as regular members. Included in this category are academic members (whose two years of teaching is considered as a one-year of internal auditing work experience) and student members (full-time university students who are in their senior (final) year. To date, individual members pay an initial IIA- Ethiopia registration and annual membership fee of Birr 50 and Birr 360 respectively as well as an affiliation fee of equivalent Birr amount of USD at the beginning of IIA-Ethiopia s fiscal year. NEWS IN BRIEF a. Recently Qualified CIA Members Three (3) candidates have recently qualified for the Certified Internal Auditor (CIA) certification. These are Ato Demissie Gebremichael, FCCA from A.A.Bromhead, Ato Dereje Akalu and Mr. Kangua Musonda from Africa Union. Congratulations for earning your CIA Certificates! b. IIA s 75 th Anniversary Celebration The IIA-Global has played a monumental role in the development of internal auditing and will celebrate its 75 th anniversary during The IIAs 2016 International Conference to be held from July 17-20, in New York, NY. The theme for the 2016 international conference is Internal Audit Rising 75 Years of Progress Through Sharing. In the conference timely issues impacting the profession will be presented and discussed. IIA Ethiopia encourages its members to attend this historical and educational event. c May Awareness Month Celebration The month of May is international internal audit awareness month to promote the profession and its important role in organizational governance, internal control and risk management. This year the major event will be held at Addis Ababa University, School of Business and Economics, Dr. Eshetu Chole Hall on 21 st May 2016 from 8:30 am to 1:00 pm. Prominent persons including H.E. Ato Gemechu Dubisso, FDRE Auditor General and Executives from Accounting and Auditing Board of Ethiopia are expected to grace this important event. d. Global council meeting held in Beijing IIA leaders from around the world gathered in Beijing, China, from April 12-15, 2015 for the annual Global Council hosted by IIA Global Headquarters and IIA China. More than 140 delegates representing 75 5
6 institutes who came together to share strategies about the future of internal audit profession and our global IIA organization. This event is essential in shaping The IIA s global strategies and programs. Ato Samuel Assefa, IIA Ethiopia President attended the meeting. The 2016 Global Council will be held in New York, NY, USA from July 16-17, e. A Call for Articles and Opinion Since IIA-Ethiopia intends to publish this Newsletter quarterly, we would appreciate if you could send any article or opinion related to internal auditing via iiaethiopia1@gmail.com or write to P. O. Box 26887/1000, Addis Ababa, Ethiopia. This will serve as a basis for exchanging news, information, opinion, and suggestions. 6
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