Joint Seminar Brussels, May 11. 2017.

Robert Kollar President of IIA Hungary 7 years of co-operation Robert Kollar President of IIA Hungary

Presentation plan Introduction IIA Hungary in a nutshell IIA Hungary and co-operation partners IIA Hungary – State Audit Office of Hungary (SAO) Co-operation agreement Highlights of our co-operation efforts

Introduction BA in Economics (1993) Hungarian Tax Advisor (1993) and CIA (2007) Deloitte Hungary (1993-1997) - Tax Advisor Rabobank Hungaria Rt. (1997-1998) – Senior Accountant Citibank ZRt. (1998-2008) Vice President – Audit KBC Global Services NV (2008-2013) - Regional Audit Coordinator K&H Bank ZRt – (2013 - ) Audit Director President of IIA Hungary (2012- ) Married, 2 daughters Robert Kollar CIA

IIA Hungary in a nutshell Affiliated member of IIA since 1992 Established as a Public Interest Company in 1995. Number of members: 350+ 5 Board members with different sector background 3 newsletters published last year Different sections: Industry, Commercial, Service Public sector and municipalities Financial Industry Fraud prevention Compliance

IIA Hungary in a nutshell Professional conferences (2-3 per annum) Internal Audit Basics – training for new auditors CIA preparation courses Joint sessions with the Association of Hungarian Economists (2-3 per year) IIA Afternoon sessions: 8-10 times a year CIA clubs (3-4 times a year) International Events: - CEE conference (2016), ECIIA event (2014) IIA Hungary Newsletter 3-4 a year Facebook page, webpage

IIA Hungary in a nutshell Educational activities in 2016: Total trained: 700+ participants Seminars: Corporates: 213 participants Financial Institutions: 156 participants Public sector: 203 participants Internal Control Assessment: 35 participants Internal Audit Basics: 24 participants Fraud seminar: 10 participants CIA training sessions: 15 participants IIA Afternoon sessions: 8 events (free for the public, 2 organized in the MNE) CIA club: 3 events

IIA Hungary and co-operation partners State Audit Office of Hungary (SAO) Ministry of National Economy (Ministry of Finance) National Bank of Hungary (sponsoring a conference) Budapest Business School Sandor Wekerle Business School EY, Deloitte, PWC, KPMG

Co-operation before the agreement IIA CEE Conference 2008 – Diversity of Internal Audit IIA Hungary conference November 17, 2010 Advanced methodologies in Internal Audit – Venue: State Audit Office of Hungary

Motivators towards co-operation IIA Hungary goals To be the leading organization for Internal Auditors through providing timely and relevant knowledge and global guidance Leader in advocating the importance of the audit profession To be the most relevant internal audit training provider in Hungary

Motivators towards co-operation SAO’s mission is to promote the transparent and sound management of public finances with its value creating audits performed on a solid professional basis, thus contributing to ‘good governance’ In fulfilling its mission SAO strives To a more efficient utilisation of its audit capacities; To facilitate the proper functioning the internal control systems within the public sector; To facilitate the implementation of the system of self-tests for public sector entities; To a better utilisation and greater effect of the results of its work; To ensure knowledge transfer, and the experience obtained during its audits; To participate in the fight against corruption; To promote the dissemination of the integrity based administrative culture within the public sector.

IIA Hungary – SAO Co-operation agreement Chronology of events: INTOSAI – IIA Memorandum of Understanding – 2007 EUROSAI – ECIIA Draft Co-operation agreement – May 2010 SAO – IIA Hungary Co-operation agreement – December 14, 2010

IIA Hungary – SAO Co-operation agreement Aim of the co-operation: Use the experience of SAO and IIA in developing the IA function Developing Best practices Use the training experience of IIA Hungary Foster the communication between the auditors of different sectors Further development of IA methodology and standards for Public Sector Supporting the development of Quality Assurance Developing methodologies for corruption - risk assessment activities Developing the overall Control environment

IIA Hungary – SAO Co-operation agreement Forms of the co-operation: Development of training and development programs Sharing the audit experience of SAO Common support to other organizations Cross-participation on events and training courses Publish professional achievements in periodicals Exchange knowledge obtained from international programs Regular meetings

IIA Hungary – SAO Co-operation agreement Main audit topics to focus on: Risk Assessment and Risk Mapping Control Self Assessment Audit Quality Assessment Fraud prevention, detection IT Audit techniques Our co-operation should focus on actual audit „Hot Topics” and sharing related Best Practices.

Highlights of the Co-operation Conferences organized by the SAO: Nov 4, 2011 Conference of the Hungarian Association of Financial and Economic Auditors – ex IIA Hungary president providing presentation Nov -Dec. 2013. Internal Controls and Integrity at municipalities organized in 18 cities IIA Hungary presentations on: IT security, Fraud detection Risk Assessment March 23, 2015: Transparency and Integrity in Public Sector

Highlights of the co-operation Nov 4, 2015. Audit methodologies: M. Buxbaum provided presentation about best practices in private sector auditing October 13, 2016. Building blocks of the good governance February 27, 2017. Integrity and ethical leadership in public sector

Highlights of the co-operation Conferences organized by IIA Hungary: Sept. 2012. Co-operation of the Defense Lines in the organizations

Highlights of the co-operation 2014. ECIIA event: Experience the flavours of Audit Fraud prevention IT audit methodologies New trends in IA Auditing the supports from EU funds

Highlights of the co-operation May 19-20. 2016. IIA CEE Conference: Next Generation of Internal Audit IT solutions, IT Security How to attract young professionals to IA Tone at the Top Co-operation of IA and the Supreme Audit Bodies

Highlights of the co-operation IIA afternoon sessions in the Ministry of National Economy December 8 , 2016. Information Security Outlook – What’s new? January 18, 2017. Control testing in practice (PWC)

Highlights of the co-operation Integrity Project: SAO launched the integrity project in 2011. SAO presentation about the Integrity Project – 2012 from 2015 the assesment of enforcing approach appears in all audits of SAO, in 2016 more than ever, 3002 institutions of public sector took part voluntarily in the integrity survey. Establishment of the Fraud prevention section in IIA Hungary – 2013 August 2013, EY –IIA Hungary co-operation for providing anti-fraud training sessions: Role of IA in fraud risk management Using data analyis in fraud risk management Digital forensic in Internal Audit FCPA and UK Bribery Act Taking the data from laptops and smartphones during fraud detections

To be continued… Meeting on March 27, 2017.

Questions?