The primary purpose of the training was to address how a pension fund can set up the internal audit function efficiently and effectively. Leading up to that, topics covered included: what is internal audit and why is there an increasing emphasis on internal audit?
DNB imposes a number of requirements on the key internal auditor. These requirements obviously passed the review. As well as the distinction and the working relationship between the holder and filler. The latest insights on this were shared from practitioners, the professional association of internal auditors (IIA) and regulator DNB. Then the model of the three lines of defense was discussed and the difference between what an external auditor does and the internal auditor.
The audit plan (also known as the audit calendar) shows which audits the key function holder chooses to perform, in coordination with the board. A robust process to arrive at a well-considered audit plan, among other things, should be risk-based and well-documented. The training covered in detail the choices to be made in this regard. In part, risks are the same for pension funds, but there are certainly also differences between funds depending on their situation, administration, relationship with the administrator and funding level. Some corresponding risk areas were shared with the attendees.
Not only does the board play an important role in the audit calendar, but also in the plan of action for an individual audit. Ideally, the board determines the "what" and "why" of the audit, facilitated by the auditor. The auditor then works out the "how. Participants then discussed the possible roles of the Supervisory Board and the Accountability Body, In a dynamic organization, a dialogue with the various actors can contribute much to an effective IA function.
The phasing of audits was then discussed. In particular, it discussed the establishment of a framework of standards against which the audit is measured. Also discussed were the various audit forms and the associated time commitment.
Fortunately, the auditor - in consultation with the client - can make many choices to positively influence efficiency. A good number of choices were presented to the participants. Finally, the added value of a concluding audit report, incuslief an opinion and recommendations, was discussed. The two-hour online training was intensive, but remained very interesting and practical due to a nice interaction between speakers and participants. We can therefore look back on a successful session.
Would you also like to know more about a pragmatic interpretation of the internal audit function at pension funds? If so, please contact Hans Sieraad, at hans@arcpeople.nl or 06-51389261.