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An Organization’s Internal Auditing Function Must Be Independent but Not Isolated

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By Banalekaki Francis Yiga

For any business or organization, there will always be risks that could ultimately tarnish its reputation, dampen stakeholder confidence or in worst case scenario, sink the organization/business. Top on any responsible entity’s agenda will therefore be managing this risk, through the internal audit function.

“Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes” according to the Institute of Internal Auditors (IIA)’s International Professional Practices Framework (IPPF).

Therefore, in carrying out their work, internal auditors must focus on three areas – Risk Management, Risk Control and Governance. Unfortunately, in some cases, some audit functions tend to focus on controls and risk management and ignore the aspect of governance. Yet, for an audit to conform to auditing standards, it must give assurance on all the three aspects.

Gauging the effectiveness of an internal audit function can be done using a number of yardsticks. The auditing process must; demonstrate integrity (in words and actions), demonstrate competence and due professional care; be independent, objective and free from undue influence; align with the strategies, objectives, and risks of the organization; be appropriately positioned and adequately resourced; demonstrate quality and continuous improvement; provide risk-based assurance; and promote organizational improvement.

This is a daunting task that essentially requires the auditor to be agile if they are to keep abreast of the issues taking place in the environment and ensure the Board and other stakeholders are brought up to speed.

The role of auditors has in the past been misconceived. Initially, the perception was that internal auditors had to be accountants. Whereas it is true that accounting knowledge is central, accounting is not the default designation for internal auditors.

Recently, there was a directive for all Heads of Finance and Internal Audit to be Certified Public Accountants (CPAs) as per the law. The enactors of the law did not consider that internal auditors may not necessarily be accountants.

IIA clearly spells out the parameters in which the role of internal auditor falls.

Part of the auditor’s mandate is to ensure the organization’s governance has appropriate structures that facilitate accountability to stakeholders through integrity, leadership, and transparency.

The other role is ensuring the governing body puts appropriate structures and processes in place, for effective governance. The same structures must align organizational objectives and activities with the prioritized interests of stakeholders. The auditing function also ensures the governing body delegates responsibility and provide resources to Management to achieve the objectives of the organization while ensuring legal, regulatory, and ethical expectations are met across the board.

In so doing, internal audit keeps governance effectiveness in check through the competent application of systematic and disciplined processes, expertise, and insight. It reports its findings to Management and the governing body to promote and facilitate continuous improvement.

To successfully deliver on its function, internal audit must be independent from the responsibilities of Management. This allows for objectivity, authority, and credibility. The auditor must have unfettered access to people, resources, and data needed to complete his/her work; and freedom from bias or interference in the planning and delivery of audit services.

However, this independence should not be construed for isolation. Internal auditors ought to have meaningful discussions with Management before subsequently reporting issues to the Board. Since it is Management that that will ultimately have to fix these issues, if any, it’s only logical to notify them first.

Regular interaction between internal audit and Management helps ensure the work of the former is relevant and aligned with the strategic and operational needs of the organization. Through all its activities, internal audit builds its knowledge and understanding of the organization, which contributes to the assurance and advice it delivers as a trusted advisor and strategic partner.

One of the issues that has tainted the image of internal audit is wearing the two ‘hats’ – of a trusted advisor and an investigator. The other issue is that of organizations’ audit ratings and the impact these ratings may have on the appraisal of the individuals being audited.

For example, an audit client may be open to the issues being raised, but the contention often emerges at the time of final rating.

In cases where internal auditors are the investigators, it may be difficult even after removing the investigator ‘hat’, to that of a business partner, for his/her colleagues to appreciate that his/her actions are in their interest. Organizations may consider separating these roles where applicable.

If they are to deliver on their mandate, auditors must continuously appraise themselves with knowledge and information on the ever-changing risk landscape they are giving assurance on. There’s a digital evolution happening world over, which requires auditors to evolve as well. Unfortunately, hackers and fraud-schemers are riding this tide. The auditors cannot afford to take a back seat.

The silver lining is, there are various data analytics tools that internal auditors can utilize to extract real time information based on the population not samples. Tools such as ACL, IDEA, Teamanalytics as well as SQL queries.

After all is said and done, organizations should support their auditors in acquiring the necessary knowledge and skill and demand value in return.

The writer is the Head of Audit, KCB Bank Uganda

 

The post An Organization’s Internal Auditing Function Must Be Independent but Not Isolated first appeared on ChimpReports.



Source – chimpreports.com

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‘Suddenly, she’s gone’: Mud and death in COVID-hit Indonesia | Coronavirus pandemic News

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Jakarta/Kudus, Indonesia – It should have been a time of celebration for Puji Apriani’s family – she was pregnant with her second child, and just weeks away from giving birth.

But instead of welcoming a new life, her family is now in mourning.

“I miss her. She was healthy, her pregnancy was normal. And suddenly, she’s gone,” her younger sister Ery Jurniastuti said.

The family lives in Kudus, Central Java – one of the worst affected areas by Indonesia’s recent surge in COVID-19 cases.

“She felt out of breath, and she was coughing. She felt contractions in her stomach, too,” Ery said.

Home to almost 900,000 people, Kudus has recorded a 7,594 percent increase in cases since the beginning of this year.

Following a steep rise in cases this month, overwhelmed hospitals have been forced to turn patients away.

After being rejected by two hospitals, Puji was finally admitted, and her oxygen levels increased slightly.

But it was too late. Her condition deteriorated and she died in hospital.

“She died first, then they checked the heart of the baby. The baby is still inside, they didn’t take it out. It died there.”

 

Puji Apriani was pregnant and only a few weeks away from giving birth when she caught COVID-19. Now, instead of celebrating a new arrival, her family are morning the death of both Puji and her baby [Jamaah/Al Jazeera]

Doctors vs Delta

At the Loekmono Hadi General Hospital in Kudus, Dr Abdul Aziz Achyar said he was “surprised” by the ferocity of the surge, which has pushed bed occupancy rates in hospitals to more than 90 percent.

“During Ramadan, it was so quiet. We only had 18 patients. But then, when it started … I myself was also hospitalised,” he told Al Jazeera.

One hundred fifty-three of his colleagues also contracted the virus, and two of them died.

Indonesia’s capacity to track variants is limited, but doctors believe the current outbreak in Kudus is driven in part by the spread of the Delta variant, which was first detected in India.

“We sent cases from health centre [for genome sequencing]… from 72 samples, 62 were the new variant,” Dr Abdul said.

At Aisyiyah Kudus Hospital, Dr Najib Budhiwardoyo said his hospital is completely at capacity.

“We are full of COVID patients. This second wave started after Eid,” he said.

“All hospitals in Kudus are experiencing this problem … oxygen scarcity. We have to be selective; we can only use oxygen for patients with very low saturation.”

Swamp turned cemetery

It is not just the hospitals in Java that are close to capacity, but cemeteries too.

In the Indonesian capital, the designated COVID-19 burial sites, such as Pondok Rangon Cemetery, that were opened in the early months of the pandemic are already full.

Cemetery workers told Al Jazeera they are struggling to keep up with their workload.

“Before COVID, I used to dig 10 graves each day. But yesterday, we dug 46 graves. The day before, it was 51,” Darsiman, a gravedigger of 20 years, said.

“We are very tired. We work from morning until night.”

Darsiman, a gravedigger of 20 years, waits for Wahyudin to finish writing on a wooden headstone [Jessica Washington/Al Jazeera]

In Rorotan, North Jakarta, a new burial site for those who have died from COVID-19 opened just weeks ago – and already, more than 800 people have been buried there.

As the death toll continues to rise, finding room for the dead in this densely packed city is becoming a challenge.

The land at Rorotan used to be an empty swamp – the families of the deceased have to trek through the mud, to pay respects to their loved ones.

“This is a new cemetery … the other locations are full. There are just so many COVID cases, so they have to bring them here,” Darsiman said.

“It’s been raining so it’s muddy. It’s very sad to see funerals here, even the ambulances get stuck trying to come in.”

Headstone writer Wahyudin said his workload has increased because of the pandemic – and working at the cemetery takes an emotional toll.

“I feel so sad seeing this many burials. Seeing those families cry, I think about my own family,” he said.

“Before COVID, I also made headstones but it’s busier now. So many people have died.”

Moments to rest are scarce – just as workers lower a plastic-wrapped coffin into the ground, more ambulances arrive, with more dead to bury.

 

‘India should be our lesson’

This week, Indonesia surpassed two million confirmed cases of coronavirus – and more than 55,000 confirmed deaths.

Dr Nadia Siti, the head of Infectious Diseases at the Ministry of Health, said the rise in cases is not surprising.

“We know that if there is a holiday or event, there is an increasing number of people moving and travelling from other cities,” she said.

The cemetery at Rorotan has been built on what was once a swamp in northern Jakarta [Fakhrur Roz/Al Jazeera]
The cemetery at Rorotan has only been open for a few weeks and more than 800 people have already been buried there [Jessica Washington/Al Jazeera]

“The government had restrictions on mudik, which is the tradition of Muslims to visit their hometown [during Eid Al Fitr]. Still, there are four to six million people who travelled.”

The situation in Kudus and capital are of particular concern to the Ministry of Health, where bed occupation rates are high and hospital workers are already overwhelmed by the crisis.

“In Jakarta, the bed occupation rate is almost 80 to 90 percent. We instruct hospitals to convert their beds into COVID-19 services, so they can be available for patients,” she said.

“The last strategy is to establish field hospitals with the coordination of the army or police.”

Long before the pandemic, Indonesia had a shortage of medical professionals – and there are concerns about how its stretched healthcare system will cope when infections are expected to peak in July.

“With the existing doctors, paramedics and nurses, it might not be enough. We might need an experienced doctor to supervise five or 10 new ones, who don’t have experience in taking care of patients,” Dr Nadia said.

“We do hope we won’t face the same situation like India. What happened in India should be our lesson.”



Source – www.aljazeera.com

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Former Philippine president Benigno Aquino dies at age of 61 | Obituaries News

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Aquino was the country’s 15th president from 2010 to 2016, and was succeeded by current president , Rodrigo Duterte.

Former Philippine President Benigno Aquino III died early on Thursday, after a prolonged illness, according to several news reports.

Aquino, 61, served as the country’s 15th president from 2010 to 2016, and was succeeded in office by the incumbent, Rodrigo Duterte.

According to ABS-CBN News, he was hospitalised last Thursday.

But he has been undergoing dialysis for at least five months and had recently undergone a heart operation.

It was during Aquino’s administration that Manila took on China and filed a case before the Court of Arbitration at The Hague over the South China Sea dispute.

The Philippines later won that landmark case a month after Aquino left office in 2016.



Source – www.aljazeera.com

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The scrappy Hong Kong tabloid that refused to bow to Beijing | Freedom of the Press News

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Hong Kong, China – The last edition of the Apple Daily, the small scrappy Hong Kong tabloid that emerged as a champion of democracy and outspoken critic of China, has rolled off the presses, four days after the newspaper celebrated its 26th anniversary.

The paper had been raided by police twice during the past 10 months on suspicion of violating the National Security Law that was imposed by Beijing almost a year ago. Since the first raid last August, founder Jimmy Lai, 73, has been in jail awaiting trial under the law.

Last week’s raid saw five top executives, including its chief editor, arrested for alleged security offences as 500 police officers swooped in on Apple’s headquarters, with another staffer – the head editorial writer – apprehended on Wednesday morning.

The final nail in the coffin, however, was Hong Kong authorities’ freeze on the bank accounts of the media group that owns the paper. The move made it impossible for the paper to pay its staff and vendors, even as readers snapped up copies to show their support.

The decision was based on “employee safety and manpower considerations”, Apple Daily said as it announced its closure on Wednesday.
“Here we say goodbye. Take care of yourselves.”

Staff members of Apple Daily and its publisher Next Digital clap out the final edition of a paper that began publishing in 1995 and became a thorn in Beijing’s side [Tyrone Siu/Reuters]

Hong Kong was returned to Chinese rule in 1997 under the “one country, two systems” framework meant to guarantee rights and liberties absent in the mainland. For most of the past 20 years, the territory has remained a bastion of press freedom in a country where media is muzzled.

“The demise of Apple Daily negates ‘one country, two systems’ and sets the stage for ‘one country, one system,’” said Willy Lam, a longtime commentator on Chinese politics and a veteran newspaper editor.

Bold, brash

Founded just two years before the handover, Apple Daily was at once a gamble and a leap of faith.

“The paper wanted to have some impact not just on Hong Kong but also to support the liberalisation of China,” Lam told Al Jazeera. “But as China has become less open to Western values, the paper has focused on defending Hong Kong values and holding Beijing to account.”

In its inaugural editorial, Apple Daily said it aimed to be a paper for the Hong Kong people.

Lai, its founder and funder, a devout Catholic who had made a fortune in the fashion business, named the paper after the forbidden fruit in the Garden of Eden in the Old Testament. Its rhyming couplet jingle – “An Apple a day, no liars can hold sway” – caught the attention of Hong Kong readers used to more staid offerings.

It was loud. It was bold, It was flashy.

The paper grabbed attention when it splashed a surreptitiously shot photo of Deng Xiaoping – China’s then-paramount leader died in February at the age of 92 – on his deathbed on the front page.

Brashness was its selling point.

Its reporters frequently skewered public officials and needled the comfortable.

“It speaks truth to power and finds a way to do profitably,” said Lokman Tsui, assistant professor of journalism at the Chinese University of Hong Kong.

Jimmy Lai, standing by one of the printing presses in 2009, created a hugely popular paper that supported democracy, was unafraid to speak truth to power and critical of the Communist Party in Beijing [File: Alex Hofford/EPA]
Apple Daily’s founder and funder, Jimmy Lai, was arrested in August under the national security law and the paper’s headquarters raided. He has now been jailed [File: Tyrone Siu/Reuters]

The paper catered to high brow and low. Colourful spreads of scantily-clad female models appeared in the same section of the paper as erudite columns featuring quotes in Latin and Classical Chinese. With a couple of exceptions, its ranks of columnists were the who’s who of the territory’s pro-democracy circle.

Giving people what they want

Launched at the dawn of the internet age, the daily was quick to adapt to the digital world. Its website pioneered animated news – a mix of stills, short clips and clever graphics with narration dripping with sour sarcasm. Its lifestyle channel on YouTube built a fervent following.

A decade in, the paper’s circulation peaked at 500,000 in a city of approximately six million people with a dozen dailies.

Apple Daily’s brand of advocacy journalism would soon make the paper a thorn in the side of the Chinese Communist Party. But to Lai, a rags-to-riches maverick millionaire now named Public Enemy No. 1 by Beijing, it was all about giving his customers what they would buy, even down to protest poster inserts.

In the summer of 2019, amid popular opposition to legislation that would send Hong Kong residents for trial in mainland China, the paper shorthanded “extradition to China” into the homophonic colloquial Cantonese expression of seeing someone to the grave. The expression immediately caught on and became a rallying cry in the protest movement.

“At times, we might have gone overboard but everything we did fell within the bounds of the law,” said Robert Chan, 45, who has covered mainland China for the paper for the past three years.

That is until the passage of the security law, which punishes what the authorities deem subversion, sedition, collusion with foreign forces and secession with possible life sentences.

Prosecutors have used Lai’s frequent meetings with US officials in recent years, from the then-vice president on down, as “evidence” of his alleged “collusion with foreign powers”.

Staff from Apple Daily and its publisher Next Digital work on the final edition of their newspaper on June 23. In its first-ever editorial, the paper said it wanted to be a publication of the Hong Kong people. It printed a million copies of its final edition [Tyrone Siu/Reuters]

Early last month, rumours started to circulate that Beijing wanted to see the paper be shuttered in time for the Communist Party’s centenary celebrations on July 1.

Technology reporter for a decade, Alex Tang, 37, said like most of his colleagues he had become conditioned to taking unsubstantiated gossip with a grain of salt – until the second raid and the company asset freeze.

During the past few days, some of the 800 reporters at the paper were frustrated by the lack of a definitive answer on the last publishing date and severance.

“Management said they’d hang on till the bitter end, and they’ve kept their word,” said Tang. “The company has done its best.”

Apple Daily will live on as a website on the self-governing island of Taiwan, where it ceased paper publication last month.

But in Hong Kong, China news reporter Chan said he will mourn the loss of far more than his livelihood.

“With the paper gone, so would the values it represents: pursuit of freedom and democracy,” he said.



Source – www.aljazeera.com

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