Advertisement for a Head of an Internal Audit Department should contain the relevant requirements

Oct 11, 2020 Letters

A current vacancy advertisement by the National Industrial and Commercial Investments Limited (NICIL) has motivated me to make the following observations as they relate to the practice of the internal auditing profession in Guyana. I do so as a founder member, and past president of the Institute of Internal Auditors – Guyana International Chapter IIAGIC which is affiliated to the Institute of Internal Auditors Global (IIAG) in the USA.

Global best practices on internal auditing require that organisations be guided by the pronouncements by the IIAG which was established in 1941 in New York City. The observations are set out under the respective headings in this advertisement:

(1) The position Internal Auditor (IA) & Risk Management Officer. The IA is also in effect, a Risk Management Officer since he/she is required to “evaluate and improve the effectiveness of risk management, controls and governance procedures as is correctly stated in the description of this position in the advertisement. Hence, this the position should be titled “Internal Auditor” or to be more specific “Chief Internal Auditor.”

(2) On the Key Responsibilities, in his/her practice of the internal auditing profession, no mention was made on the IA’s complying with, as well as being familiar with the IIAG’s International Standards which are twofold, – Attribute and Performance. They are included in the IIAG’s International Professional Practices Framework. The IA is required among others, to be very knowledgeable with, and to apply those Standards in the conduct of audits, hence this is a major Key Responsibility which should be mentioned in this advertisement.

Other Key Responsibilities, are for the IA to demonstrate his/her competence, professionalism and leadership qualities. Also, membership of the global body – IIAG should be a requirement, taking into consideration the substantial benefits which will accrue to the member.

(3) On the Requirements, (Qualifications) the emphasis is more on finance and accounting qualifications. They were applicable approximately three decades ago. Today’s IA is required to be certified by the IIAG with the designation – Certified Internal Auditor (CIA). From a global perspective, the IA and more so the Head, should possess the CIA designation. To mention it only ‘as an asset’ is less emphasis, as compared with the accounting qualifications being the major requirement.

The IIAG also provides certification on Risk Management. This designation is Certified Risk Management Assurance (CRMA) which should supplement the CIA designation.
In the circumstances, the CIA and the CRMA designations should be highlighted above the accounting & other qualifications, the latter of which supplement the former (CIA). If one is guided by this Requirement in the Advertisement, then the IA’s emphasis may be focused largely on conducting audits on the Finance and Accounting Units(s), and not on all Units involved in the operations of the Entity. If this occurs, then the IA’s professional practice will not be complying with IIAG’s International Standards.

In closing, my motto is not to criticize NICIL’s advertisement but to suggest that it should follow the guidelines of the IIAG. This global body which takes pride in the development and growth of this profession, wants to make a positive difference for the future. It is forward thinking and takes a stand for professionalism and competency. Indeed, it is committed to elevating the growth and practice of internal auditing worldwide, and at the same time, in meeting the global best practices.

That being said, an Advertisement for a Head of an Internal Audit Department should contain the relevant requirements to meet the internal auditing goals of this profession.

Yours truly,

John Seeram

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