In persuit of perfection internal auditor the gate keepers of ethics in jamaican business

In Pursuit of Perfection: Internal Auditors the gatekeeper of Business Ethics in Jamaica.

"Integrating Project Management Techniques for Internal Auditing"

Cyberdyne Business Solutions

AGENDA• Background• Management Dilemma and Solutions• Roles, Function and Reporting

Relationship of an Internal Auditor• Project Management Overview


Definitions

• Business ethics are moral principles that guide the way a business behaves. The same principles that determine an individual’s actions also apply to business.


Monitoring Of Construction Contracts

• During the 2012 calendar year, the Construction Contracts Division of the Office of the Contractor General (OCG) monitored the Pre and Post Contract stages of three hundred and sixty seven (367) contracts. As such, there was a 10.5% decrease in the number of works contracts which were monitored for the year 2012, in comparison to the previous year in which four hundred and ten (410) contracts were monitored.

• It must be noted that the NCC, during the year, endorsed a total of one hundred and forty eight (148) works contracts which had an aggregate value of J$10,314,568,600.00, of which fifty-two (52) were monitored by the Construction Contracts Division. (Harrison, 2012)


Monitoring Of Non-construction Contracts, Licenses, Permits And

Concessions • The Division monitored approximately six hundred (600)

opportunities/contracts during the calendar year 2012, in comparison to six hundred and eighty-two (682) procurement opportunities/contracts which were monitored in 2011. This represents a twelve percent (12%) decrease in the number of non-construction contracts and license which were monitored over the corresponding period.

• Of the 600 opportunities/contracts which were monitored during the year, four hundred and sixty three (463) represents monitoring assignments which were carried forward from 2011. The remaining one hundred and thirty-seven (137) or approximately twenty three percent (23%) represents new monitoring assignments during 2012. (Harrison, 2012)


Problem Set• A company has been working on the development

of an advance product for the last three years at a cost of $2 Million. Under the original plans, the project should have been completed and the payback (new revenues and/or cost savings) should have started six months ago. So far, the delay has run an anticipated additional cost of $500,000, and, with no end in sight, management is getting edgy. Should it terminate the project or budget additional funds to continue work?


Management DilemmaManagement Facts:•Decision to continue supplying funds, manpower and facilities or whether to kill the project based on current status of project.•No one has sufficient, reliable information into what has been accomplished or what to expect in the future


Solutions• Experience has shown that skills and

methodology used in financial auditing are adaptable to the review and audit needs of development projects and technical work.

• Assessment based on technical competence alone often fail to further furnish management with the data necessary for decision making. (Ross, 1976)


Definition of Internal Auditing• According to Institute of Internal Auditors

(IIA) - "Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes." (Deloit, 2014)


Major roles and responsibilities of internal audit function

• evaluates and provides reasonable assurance that risk management, control, and governance systems are functioning as intended and will enable the organization's objectives and goals to be met

• reports risk management issues and internal controls deficiencies identified directly to the audit committee and provides recommendations for improving the organization's operations, in terms of both efficient and effective performance

• evaluates information security and associated risk exposures. (Deloit, 2014).


Major roles and responsibilities of internal audit function (cont.)

• evaluates regulatory compliance program with consultation from legal counsel

• evaluates the organization's readiness in case of business interruption

• maintains open communication with management and the audit committee

• teams with other internal and external resources as appropriate

• engages in continuous education and staff development• provides support to the company's anti-fraud programs.

(Deloit, 2014)


Reporting Structure of Internal Audit Function

• In most companies, the internal auditor traditionally reported to either the Chief Financial Officer or the Chief Risk Officer, though other may have existed in some companies. Today, the internal auditor may either report directly to the Audit Committee, or the Audit Committee will have a role in hiring, firing, evaluating and compensating the Chief Audit Officer. The Audit Committee’s increasing role with regard to the internal audit is being undertaken to help ensure the internal auditor’s "independence" and objectivity.

• The relationship between the Audit Committee and the internal audit function should be clearly defined and addressed in the Audit Committee’s charter.


Project Overview• Project - A project is temporary in that it has a defined

beginning and end in time, and therefore defined scope and resources.

• Project Manager – A PM is assigned by an organization to achieve the specified objectives of a project within the competing project constraints. The role of the project manager is different from a functional manager or an operations manager. Depending on the organizational structure, the project manager may be reporting to a functional manager or a program manager or a portfolio manager.


Organisation Type: Functional

A hierarchical organization where each employee has one clear superior, staff are grouped by areas of specialization, and managed by a person with expertise in that area.


Organisation Type: WeakA project manager (often called a project administrator under this type of organization) with only limited authority is assigned to oversee the cross-functional aspects of the project.


Organisation Type: Weak Matrix

A project manager (often called a project administrator under this type of organization) with only limited authority is assigned to oversee the cross-functional aspects of the project. The functional managers maintain control over their resources and project areas.


Organisation Type: Balanced Matrix

A project manager is assigned to oversee the project. Power is shared equally between the project manager and the functional managers.


Organisation Type: Strong Matrix

A project manager is primarily responsible for the project. Functional managers provide technical expertise and assign resources on an as-needed basis. Because project resources are assigned as necessary there can be conflicts between the project manager and the functional manager over resource assignment.


Organisation Type: Projectised

an organizational structure in which the project manager has full authority to assign priorities, apply resources, and direct the work of persons assigned to the project.


Defining Organisation Structure


5 PROCESSES GROUPS• Initiating –

– Formal process recognize a new project– Stakeholders are identified– Commitment is obtained

• Planning – – The use of resources to plan and subsequently report progress within

the project environment• Executing –

– The actual work on the tasks planned • Controlling and Monitoring –

– To provide an understanding of the project’s progress so that appropriate corrective actions can be taken

• Closing – – Those processes performed to formally terminate all activities of a

project or phase, and transfer the completed product to others or to close a cancelled project


10 Knowledge Areas• Project Integration Management - All Areas • Project Scope Management - Requirements• Project Time Management - Schedule• Project Cost Management - Budget• Project Quality Management – Final product outcome• Project Human Resource Management - People• Project Communications Management – Info. Delivery

• Project Risk Management – Measure/ Countermeasures• Project Procurement Management – Goods/services• Project Stakeholder Management - Stakeholder Analysis


Project Integration Management

• Primarily concerned with effectively integrating the process among the project management process groups that are required to accomplish the project objective within an organisation’s defined procedure


Project Scope Management• Scope Management is the process of

defining what work is required and then making sure all of that work is done – and only that work is done.

• Scope refers to all the work involved in creating the deliverables of the project and the process used to create them


Project Time Management• Time management is an essentially significant

ability for any efficient project manager. Project managers, who are successful in controlling the schedule, are usually able to manage the budget, since schedule has a direct influence on the project budget. The most common reasons of going over budget in projects are due to improper management of schedule. -


Project Cost Management• Project Cost Management includes those

processes involved in planning, estimating, budgeting, monitoring and controlling costs. The ultimate goal of project cost management is to complete the project within the approved budget.


Project Quality Management

• Quality is defined as the degree to which the project fulfills its requirements

• Quality Management includes creating and following policies and procedures to ensure that a project meets from the customers perspective

• A lack of attension to quality means rework or defects


Project Human Resource Management

• The Human Resource management process takes time and effort to plan how you will involve people, identify the team members you will need, define everyone’s roles, create reward systems, improve team member’s performance individually and a team, and track performance.


Project Communication Management

• The Plan Communication Management process considers how to store, maintain, distribute, and retrieve information and what will happen to all the project information once the project is closed.


Project Risk Management• Risk Management includes Risk

Management, Risk Identification, the qualitative and quantitative analysis of risk response, planning and monitoring and control of risk response.


Project Procurement Management

• Procurement is a formal process to obtain goods and services.

• Private companies have a lot of flexibility in their procurement practices.

• Government entities are spending public funds, they have to comply with laws, rules, and regulations that specifically govern each step of the procurement process


Project Stakeholder Management

• Identifies the people, groups, or organisations that could impact or be impacted by the project

• Analyse stakeholder expectations and their impact on the project

• Develop appropriate management strategies for effectively engaging stakeholders in project decision and execution.


Thank You


References• ROSS, F. E. 1976. Technical Reviews and Audits: Keeping Track of Progress in

Development Projects. Management Review, 65, pg. 11.• HARRISON, D. 2012. OFFICE OF THE CONTRACTOR-GENERAL ANNUAL

REPORT 2012. 18 Oxford rd. Kingston 10 Jamaica W.I.: pg. 857.• DELOIT. 2014. Internal audit roles and responsibilities [Online]. Available:

http://www.deloitte.com/view/en_CN/cn/services/corgov/ic/iarr/index.htm?lgtog=lgtog.

• EL-NAGGAR, W., MBA & PMP. 2013. Project Scope Management Based on PMBOK 5th Edition [Online]. Available: http://www.slideshare.net/wnaggar/pmp-02-project-scope-management.

• MULCAHY, R. 2013. Rita Mulcahy's PMP Exam Prep, RMC Publications; Eighth edition pg. 624.


Date post:	18-Nov-2014
Category:	Presentations & Public Speaking
Upload:	patrick-thompson
View:	140 times
Download:	0 times

In persuit of perfection internal auditor the gate keepers of ethics in jamaican business

Presentations & Public Speaking