Our Journey to the Future Changing the Role of Internal Audit in a Changing World 07 MAY 2018 AUDIT & ASSURANCE UNIT - ADNOC ABU DHABI NATIONAL OIL COMPANY
Year of Zayed Future generations will be living in a world that is very different from that to which we are accustomed. It is essential that we prepare ourselves and our children for that new world. Sheikh Zayed bin Sultan Al Nahyan, First President of the UAE and Father of the Nation 2
ADNOC ADNOC CHANING INTRODUCING ROLE OF ADNOC INTERNAL AUDIT IN A CHANGING WORLD ADNOC At a Glance Established in 1971 14 integrated operating companies across the upstream and downstream value chain One of the world s largest energy producers 3 million barrels of oil per day More than 9.8 billion cubic feet of gas per day A primary catalyst for UAE s growth and diversification More than 45 years of working in international partnerships 3
Our Global Markets 4
ADNOC Group and Shareholders Upstream ADNOC Onshore ADNOC Offshore ADNOC Drilling Al Dhafra Petroleum Al Yasat Petroleum Downstream ADNOC Refining ADNOC Fertilizer ADNOC LNG ADNOC Gas Processing ADNOC Sour Gas ADNOC Industrial Gases Borouge ADP Borouge PTE Marketing Sales & Trading ADNOC Distribution ADNOC L & S ADCOP
In Pursuit of Excellence Embrace Technology Fit for purpose technology support IT enabled evolution to excellence 06 Think Differently Investing in Audit Value over Cost Driving through INTERNAL resources Interlocking & Unlocking potentials Enhancing Value 05 01 Acknowledging Status-Quo Re-defining IA Value Understanding where we are Embracing Innovation Viewing Challenges as opportunities 04 02 Re Engineering IA Governance IA Execution IA Performance Management 03 Promote Collaboration ADNOC Group Audit Council Group IA Transformation Office IA Community & Website 6
Internal Audit Structure Board of Directors Audit Committee (AC) CEO IA Function Head Line Function Leaders 7
IA Governance New Perspectives 1. AC Composition Highlights 2. AC Learning & Knowledge Bank 3. AC Change Management 4. CEO Participation 5. Triangle of Trust AC IA CEO Commit 8
Execution Holistic Approach - Extended Assurance The Extended Assurance Methodology is an integrated and holistic approach that sharply focuses on ADNOC strategic pillars. Provides management with a holistic view of the audit function. Considers Strategic, Financial, Information Technology, Operation, Standards and Regulatory and Monitoring and Reporting areas as mutually dependent for establishing an effective and efficient internal control environment. Enhances efficiencies while bringing down the costs in a streamlined manner. 9
Extended Assurance Model - Impact Enhancing quality of audits by enriching scope & content Minimizing business distractions by reducing audit visits Minimizing redundancies by eliminating same findings No. of Audits No. of Observations Average Observations per 24 Audits 10
Managing Performance Measure to Manage 1. Oversight Dashboard 2. Executive Dashboard 3. Audit Equivalent Dashboard 4. Fulltime Equivalent Dashboard 5. IA Financial Dashboard 6. Audit Finding Dashboard 11
Enhancing Value Re-engineering of IA Governance and Execution Enhancing value with Measurable index (hard Dollar Impact) Improved Performance Management (KPIs) Building Competence and Develop Talent IA Centric Value Company Centric Monitoring & Reporting Standard & Regulatory Strategic P P E P Operation Financial Information Technology Advisory Services beyond Audit Plan Extended Assurance Automation and Data Analytics Collaborating with Management & more engaged 12
Driving Efficiency Audit Management System Integration though standard Audit Management System Data Visualization Analysis through interactive dashboards Predictive Analytics Harnessing the power of historic data DA Enablement Increased use of data throughout the audit lifecycle Continuous Monitoring Effective Risk Velocity Management 13
Outlook to the Future Augmented Reality Artificial Intelligence Disruptions Culture Audits Block Chain Robotics Social Audits Evolving Regulations Strategic Direction Peripheral Vision 14
Questions? 15
THANK YOU