training and certification for cpia (certified public sector internal auditors) in croatia

Republic of Croatia - Ministry of Finance Central Harmonisation Unit & Internal audit Division

PEM-PAL - 2nd Internal auditors’ Community of Practice WorkshopChisinau, Moldova, June 20-22 2007

Training and certification for CPIA Training and certification for CPIA (Certified Public sector Internal (Certified Public sector Internal

Auditors) in CroatiaAuditors) in Croatia


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Contents

Strategy and legal framework

OverviewObligatory modules

Optional modules

Continuous improvement


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IIA standards

1230 – Continuing Professional Development

Internal auditors should enhance their knowledge, skills, and other competencies through continuing professional development.


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Croatia - Legal framework for Internal audit

Code of ethics Internal audit standards

Rulebook for budget users IAInternal audit manual

PIFC Law PIFC policy

Decree on organisation of SABsRulebook for job description of SABs

Charter of internal auditorsWorking procedures of IAD

Strategic/annual planInternal audit programmes/guidelines

Internal audit reports/Follow up

Sta

teC

HU

SA

Bs


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Central Harmonization Unit

Two departmentsInternal audit functions:

Coordination of the development of IADrafting rulebooks, documents, guidelines Training for the IATraining for the IAProviding on job assistance in the implementation of the written regulationsAnnual report on IA


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IA results 2003- 06/2006

0 0

32

0

67

34

114

21

174

79

0

20

40

60

80

100

120

140

160

180

Nu

mb

er o

f in

tern

al a

ud

ito

rs

2003. 2004. 2005. 2006. 05/2007.

Number of internal auditors

CPIA

CHU established by

the Budget Law

CARDS 2002

project started

Cooperation Agreement with the European

Commission – DG BudgetBU’s IA Rulebook

Development Strategy of

PIFC

New –DevelopmentStrategy of PIFC and

other documents

New Rulebook on IA of budget

users

PIFC Law

CARDS 2004

started


Strengths of the system

CHU support

Trainers – internal auditors- CPIAPaid for training

Responsible for quality

Team leader for each module

Training committee Objective: To monitor and develop the training system

Members: All modules team leaders

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Strengths of the system

Workshop aproach:Presentation

Open discussion

Exercises form real life in CroatiaProcedure defined and accepted:

Program for Training and Certification of Internal Auditors in Public Sector (2005)Examination Instruction for the Certification of Internal Auditors in the Public Sector (2005)

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Recent developments

Change in the program to adress the recent developments and needs of the internal auditors

Target: CIA, CGAP tailored for the Croatian enviroment

EU accepted CPIA

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10

Training and standard audit cycle

Risk-based Planning

Reporting

Audit

Perform

ance


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Prerequisites for entering the IA profession (Club)

Rulebook for IA of the budget users:Bachelors degree (4 years university) – no specific area of specializationState examDeclaration of the head

For being the internal auditor in the institutionFor passing the education scheme and obtaining the certificate –> professional authorization (Croatian: stručno ovlaštenje”)


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Approximately 12 months

Practical experience

1.Module

2.Module

3.Module 4.Module

5.Module

Evaluation for the Diploma

level 1.

Evaluation for the Diploma

level 2.

Certification

The European Union’s CARDS 2002 programme for Croatia: “Development of Public Internal Financial Control and Internal Audit”

6.Module

7.Module

Certification scheme of Public Internal Auditors – Obligatory

modules


Obligatory modulesObligatory modules


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Module 1. - Best Practice Government Internal Auditing

Introduction in the certification scheme

Development of internal audit

Corporate governance, risks, controls

IA standards, Code of ethics

Introduction in audit cycle

Management of IA unit


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Module 2. - Applied Auditing

Planning of audit assignment

Determining and recording the system

Assessing the Controls

Testing the application and effectiveness of controls

Evaluating findings

Reporting and follow-up

Audit file


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Module 3. - Communication and interpersonal skills

Communication skillsCommunication

Interviewing

Negotiation skills

Interpersonal relationships

Presentation skills and reporting


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Module 4. - Governance, Risk Management and Control

Corporate governanceRole of IADevelopment

Organizations and their environmentRisk management

Nature, cycleInternal audit and risks

Internal controlPIFC, Self-assessment


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Module 5. - Advanced Auditing

Management of IA unit

Consultancy

Auditor and irregularities

Auditing IT

Audit and EU

Value added auditing

Audit techniques


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Module 6.- Accounting auditing

Accounting environment, financial reports, key accounting standards

Accounting managementAssets, cost accounting, creditors, financial indicators

Public sector accounting

Using accounting in auditing


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Module 7. - Auditing IT and using IT for auditing

Introduction in ITBasic information and risks in:

Hardware and risks Software and risksNetwork, staffSecurity

Using IT in auditingDatabases, queries


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Certificate requirements

Presence on all modules (M1->M7)Diploma level 1. (after M3)

Essay + presentation

Diploma level 2. (after M7)Exam (50 questions form all modules – 70%)

Two practical audits (with mentor – certified internal auditor)


Optional modules


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Module 8. – EU funds auditing

EU institutions, laws, regulationsPerforming EU audit

Audit trail, planning the audit, risks, ICQ-s, control self-assessmentReporting, audit files and working papersFollow up

Managing auditing of pre-accession fundsRisk assessment and planningIA CapacityOrganization of work

Audit file


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Module 9. – Risk assessment and strategic planning

Identification of missions, submissions

Pondering of submissions

Identification of processes and activities and risks linked with them

Risk assessment

Prioritization of potential audits

Internal audit strategy and annual plan


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Seminars, conferences,…

Annual seminars of IA in the public sector organized by CHU:

2005, 2006, 2007 planned

Organized by other institutions:CEF – Seminar on internal audit

EU - CHU conferences

IIA conferences

…


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Internal auditors network

A strong emphasis was put by the CARDS project and taken over by the CHU for the creation and the maintenance of network


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Training cycle vs. IA process

Risk-based PlanningC

ontin

uous

Im

prov

emen

t

Reporting

Audit

Perform

ance

M1

M2

M3

M4

M5

M8

M6

M7

M9

Seminars, conferences, etc.


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Conclusion

Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime.

– (Chinese proverb)


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CHU: http://www.mfin.hr/str/100/#509

CARDS project: http://pifc.mfin.hr

Additional info

training and certification for cpia (certified public sector internal auditors) in croatia

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