Transcript GFOA Municipal Accounting and Auditing Best Practices Workshop

GFOA Municipal Accounting and
Auditing
Best Practices Workshop
Internal Audit in Local
Government
Gail Stephens, CEO BC Pension Corporation
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 1. Leave every place
a little better than you
found it.
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 2. You can’t stomp
your feet when you
are on your knees.
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 3. Know the
objectives.
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 4. Nothing ever
happens until
somebody sells
something.
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 5. Every deficiency is
rooted in the violation
of some principle of
good management.
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 6. Never believe
what the first person
tells you.
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 7. The best question
is: “As manager, how
do you satisfy
yourself that…..”
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 8. Politics and culture
will usually win over
rules and regulations.
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 9. When you point
your finger, make
sure your fingernail is
clean.
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 10. Murphy was an
optimist.
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Independence
 Internal Auditor
Reporting to Council
 Internal Auditor
Reporting to
Management
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Role of the Audit Committee is a Critical
One
 Oversight of financial reporting and disclosure
 Review of internal and external audit findings
 Evaluation of the adequacy and effectiveness
of internal controls
 Assessment of the organizational risk and risk
mitigation strategies
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Blue Ribbon Committee on Improving the
Effectiveness of Corporate Audit
 The Audit Committee
plays a key role in
monitoring and
oversight of
management.
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Blue Ribbon Committee on Improving the
Effectiveness of Corporate Audit
 Independent
communication and
information flow
between the audit
committee and the
internal auditor is
important.
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Blue Ribbon Committee on Improving the
Effectiveness of Corporate Audit
 Independent
communication and
information flow
between the audit
committee and the
external auditor is
important.
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Blue Ribbon Committee on Improving the
Effectiveness of Corporate Audit
 Candid discussions
with management, the
internal auditor, and
the external auditor
regarding issues
implicating judgment
and impacting quality
is required.
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Blue Ribbon Committee on Improving the
Effectiveness of Corporate Audit
 Finally, and equally
important to the first
four principles, is that
committee members
be diligent and
knowledgeable.
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Reporting to Council
 Keep it simple
 Do not over dramatize
 Be prepared
 Gain perspective
 Win management
over
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Media and the Public
 Have a
communication
strategy
 Work with
management
 Practice, practice,
practice
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 As Katherine Graham
once said: “To love
what you do and feel
that it matters, how
could anything be
more fun.”
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Questions
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