Search on for top internal audit department in RP firms

In line with its commitment to support the government and private sector’s initiative in uplifting the standards of corporate governance, the Institute of Internal Auditors—Philippines (IAA-P), in tandem with the Securities and Exchange Commission, has launched the search for the outstanding internal audit department among Philippine corporations.

IIA-P is an affiliate of the Institute of Internal Auditors Inc. (IIA Inc.), an international professional organization based in the United States.

The award, according to IIA-P, shall give recognition to the internal audit department that will meet the global standards set by the IIA, specifically in the areas of professional excellence, quality of service and professional outreach.

"This search is our way of motivating internal auditors to strive for excellence in all that they do, add value to their organization and make significant contribution to the advancement of the internal audit profession," IIA-P said.

The internal auditing departments of entities based in the Philippines will be judged not only on what they have already achieved, but also by their dedication and commitments to a continued improvement in the future.

The board of reviewers, composed of SEC Chairperson Lilia R. Bautista, Rizal Commercial Banking Corp. chairman Rizalino S. Navarro, and Jaime Villegas, head of Globe Telecoms’ audit committee, will evaluate and choose the winner.

This is just among the many programs lined up by IIA-P to encourage its members to improve their technical competence and serve their organizations better.

IIA-P is also encouraging its members and other non-member internal audit practitioners to pursue and obtain an international professional certification in the field of internal auditing.

With only a handful of certified internal auditors in the Philippines in 1998, the number has grown to 78 as of May 2002, out of more than 35,000 CIAs worldwide.

The SEC, on the other hand, is actively promoting good corporate governance practices to ensure transparency and fairness. In April this year, the SEC issued a Code of Corporate Governance, which prescribes among others, higher qualification and ethical standards for directors and auditors of corporations.

The SEC said while financial statements are primarily the responsibility of the management of the reporting corporation, the fairness and accuracy of the representations made therein are part of the certified public accountants’ responsibilities.

Beefing up its regulatory powers over auditing firms, the SEC has implemented additional disclosure requirements on the independence of external auditors. These include disclosure of any relationship or interest of the external auditor to the company or any of its directors or officers and requiring specific details showing the reasons for changing auditors.

The auditing firm is also required to disclose any material finding discovered during the period of audit involving fraud or dishonesty or error, including cases that were resolved during the period of audit which will reduce the total assets by five percent for companies with total assets of more than P50 million.

Audited financial statements contain the basic information about a company’s financial position and performance. – Zinnia dela Peña