By John Seeram
The Institute of Internal Auditors (IIA) Global has declared the month of May to be International Internal Audit Awareness Month. Therefore, I have chosen to enlighten readers on the establishment and the development of the Guyana Chapter, and its relationship with IIA Global.
What is the IIA Global?
The IIA Global was established in 1941 in New York City by a small group of dedicated internal auditors who wanted a professional organisation that would represent their profession, and to provide educational activities and standards for the professional practice of internal auditing. Since then, the IIA has become a dynamic international organisation that meets the needs of a worldwide body of internal auditors.
Its mission is to be the primary international professional association, organised on a worldwide basis, and it is dedicated to the promotion and development of the practice of internal auditing.
With over 180,000 members in approximately 190 countries globally, the IIA is proud to be the world leader in certification, education, research, and technological guidance for the profession globally. Headquartered in Altamonte Springs, Florida, USA, the IIA is obligated to meeting the needs and development of Internal Auditors worldwide.
This Global Institute is committed to:
● Providing, on an international
scale, comprehensive profession-
al development activities, stan-
dards for the practice of internal
auditing, a code of ethics, and
certification of its examinations.
● Researching, disseminating, and
promoting to its members and to
the public throughout the world,
knowledge and information
concerning, among other things,
governance, risk management
and controls.
● Having international conferences
worldwide in order to educate
members and others about the
current practice of internal
auditing as it exists in various
countries throughout the world.
● Bringing together internal
auditors from all countries to
share information and experi-
ences in internal auditing and
promoting education in the field
of auditing through local, region-
al and international meetings.
● Providing a Code of Ethics in
order to promote an ethical cul-
ture in the profession of internal
auditing. This code is necessary
and appropriate for this profes-
sion, founded as it is, on the trust
placed in its objective assurance
about governance, risk manage-
ment, and control.
The Guyana Chapter
The establishment of the Institute of Internal Auditors-Guyana Chapter (IIAGC) was approved by the IIA Global on 30 April, 2000, and it is now in its 21st year of existence.
This Chapter attained a major landmark on 11 July, 2019, when it became an International Chapter of IIA Global. Prior to 11 July, it was a member of the North American Chapter, which comprises the United States of America, Canada, and eleven Caribbean Countries, including Jamaica, Puerto Rico, Bermuda, Barba-dos, and Trinidad & Tobago.
The Chapters around the world are the building block of the IIA Global. This Chapter’s aim is to serve the IIA membership as well as commercial, industrial and governmental organisations. Auditors from both the private and public sectors make up the membership of this Chapter. Representatives from public accounting organisations, educators from the Univer-sity of Guyana and students interested in the internal auditing field are welcomed to be members. This member diversification provides a real forum for a rich interchange of ideas and information.
International Chapter (IC)
Guyana is now a global partner of the IIA, joining over 190 countries and territories across the world, and is no longer under the ‘umbrella’ of IIA North American Chapter. In order to be an IC, this Chapter must maintain a minimum of 50 members. In effect, this is not a problem area.
Additionally, members will benefit in the following ways:
● Members can now renew their
membership for a fee of US$100,
as against the former fee of
approximately US$265. With
such a significant reduction (62
per cent), it is expected that the
Chapter’s membership should
surpass 100 shortly.
● There will be on demand, 24/7, a
webinar playback, allowing
members access to an extensive
library of an archived resources,
covering topics such as audit fun-
damentals and soft skills technology.
● Archived webinars will also be
eligible for Continuing
Professional Education Credits,
which is a key annual require-
ment for holders and as well for
other IIA Certifications.
Development and Growth
Over the past 20 years, the Guyana Chapter has been recognised by the IIA Global for its continuing development and contribution to the internal auditing profession locally. In this context, this profession has been benefiting from:
● Training Seminars and Work-
shops which are presented by
well qualified and experienced
Facilitators with a focus on cur-
rent global best practices.
● Maintaining a membership over
its second decade of approxi-
mately 60 to 80 members, and
actively conducting membership
recruitment. In year 2000, this
Chapter had started with a mem-
bership of 15.
● Providing a Chapter Website and
other technology resources to
serve its members as determined
by the IIA Global.
● Developing and providing the
services as it deems most appro-
priate to serve internal audit pro-
fessionals.
● Ensuring that the International
Professional Practices Frame-
work (IPPF) is made available to
all its members.
● Marketing and increasing the
demand for IIA’s Certification
Programmes. Worthy of mention
is that in 2005, Guyana had its
first certification-Certified Inter-
nal Auditor (CIA), while in 2020
it now has 16 CIAs.
● The strategic alignment of the
activities of this Chapter since its
existence with that of the IIA
Global.
● Promoting outreach programmes
in both the private and public
sectors on the current best prac-
tices of the internal auditing
profession.
● Allowing members holding exec-
utive positions to be given the
opportunity to attend IIA’s over-
seas conferences with a view to
sharing their knowledge obtained
with Chapter members.
Hurdles
After 20 years of this Chapter’s existence, the role of the internal auditor has not been fully recognized despite the Chapter promoting its mandate from the IIA Global.
Evidence of this, and this not a full list, includes that
● Management in both the public
and private sectors is yet to fully
accept the important role the
internal auditor plays in an organisation.
● The internal audit profession is not fully receiving the recognition it deserves from its stakeholders.
● The auditing emphasis is yet to fully focus on, among other things, governance, controls and risk management. Further, preference is still being given to appoint auditors with an accounting background, however such a unit needs to be also be staffed with non accountants in order to add value and improve the organisation’s operations.
● There is still the view that the internal auditor and the external auditor is one and the same.
● The internal auditor is not being allowed to perform and act independently at all times. As an example, the reporting function is to a senior line staff and not to an Audit Committee of the Board of Directors in order to preserve the auditor’s independence.
● More funds should be provided in the training budget for internal auditors in both sectors since the audit scope has been constantly expanding. That budget should also provide adequate funding for ongoing research and development of this profession.
Contributors to the Chapter’s success
Contributors to the successful growth path of the Guyana Chapter are
● The Board of 10 Governors which became operational in year 2017.
● The Executive Committee, which is headed by a President and supported by three to four members.
● Ad Hoc Committees to support the Executive Committee.
● Stakeholders in both the Private and Public Sectors who can be classified as partners with the Guyana Chapter.
With the exception of the stakeholders, the above mentioned contributors are Chapter volunteers, tasked with providing services in accordance with the IIA’s mandate.
Over the 20 years of the Guyana Chapter’s existence, the presidency has been held by myself Deodat Indar, Jaigopaul Ram, Jaisree Lam, Devi Kaladeen, and, presently Mandie Mickel, who is also Chair of this Chapter’s Board. It should be mentioned that this Chapter’s leaders over the years have been/ are selected for their competence, professionalism and leadership qualities.
Recognition must also be given to the significant contributions made towards the early development of IIAGC. And they are Lal Balkaran of the Toronto, Canada Chapter, the late Barry Robinson of the Jamaica Chapter, Claire Gomez of the Trinidad & Tobago Chapter, and Kevin Mead, Field Services Manager, IIAG.
The goals that have been attained to date are the result of a team effort, involving the Board of Governors, the Executive Committee, its Members, and its Stakeholders.
The way forward
The Guyana Chapter is fully aware of the areas it needs to focus on. It is the hope that the internal audit profession will continue to receive the recognition it deserves from its stakeholders, and that the importance of the profession is understood and embraced by all. Today’s internal auditors must be seen as a partner, instead of a watchdog, assisting management to increase its organisation’s effectiveness as promoted by the IIA Global.
In 2020, IIAGC will continue to intensify its promotion of the profession in partnership with the global body. It has to encourage all internal auditors to follow the IPPF. This IPPF is reviewed and updated every year, which is excellent. One of the major challenges being faced is that internal audit is still not well-understood in some quarters, and one way to overcome this is for auditors to be guided by using the IPPF.
We in Guyana have to keep abreast with the developments of this profession and to focus on not only on risk-based auditing, but also on value-based auditing and performance improvement. Internal auditors need to keep advancing this profession within their respective organisations, so that they can be viewed as not only relevant, but also as an indispensable asset.
The IIAGC Guyana is committed to continue moving this profession forward. IIA Global is recognised for the sharing of knowledge and raising the level of the auditing profession worldwide over the past seven decades. This Chapter continues to follow the Global Institute’s motto, which is “Progress Through Sharing.”
And, finally, I close by stating that the members of the IIAGC take pride in our noble profession, and want to make a difference for the future. In so doing, this Chapter is forward-thinking, takes a stand for professionalism and competency, and is committed to elevating the practice of internal auditing in Guyana to the required quality assurance standards. The continuing development and growth of the internal auditing profession in Guyana is heavily dependent on this vital servicing unit, IIAGC, as well as partnering with its many stakeholders.
