Internal Audit Community of Practice (IA COP) met in Yalta, Ukraine

The objective of the 7th PEM PAL Internal Audit Community of Practice (IA COP) workshop was to explore relations between inspection, internal and external audit. Internal audit professionals from 20 countries in Europe and Central Asia (ECA) region met in Yalta, Ukraine between May 26-28, 2010. The workshop was hosted by The Main Control and Revision Office of Ukraine.

Participants exchanged views on and experience with harmonization of training and certification (T&C) in internal audit. As part of capacity building effort, harmonization was seen important for enhancing professionalism and motivation, and keeping the best staff in the public sector. But lack of financing, insufficient commitment and ownership, as well as difficulties with getting the right trainers often hamper the process. Several proposals to deal with these obstacles were made, such as involving universities, using PEM PAL conclusions to make the case for a change, training the managers, etc.. 
 
How does the role of internal audit differ from that of inspection? was another important question discussed in the workshop. Participants maintained that it is essential to separate the roles of inspectors and internal auditors, but also to establish good relations among them. In principle, inspection is an investigatory activity, and internal audit is a service to line management with a more strategic and systematic view. In practice, their roles are often overlapping, or are misunderstood. For a smooth transition from inspection to internal audit, getting the pre-conditions right is essential, such as adequate regulation, clear concept, political commitment and ownership, training to understand a complex terminology, as well as trust in the system.
 
Participants also talked about cooperation between internal and external audit, and the lessons learned in enhancing the role of internal audit in the public sector. Questions on how to promote professional development, avoid duplications, use findings of internal auditors, etc. were at the center of the discussion.