Creating National Values with Global Accumulations 11 th Turkey Internal Audit 9 th November, 2007 Istanbul Accountability: Value that only Internal Auditing can bring to the Audit Committee and Executive Management J Graham Joscelyne

Key Message Look Out Stay Focused Stand Firm

Overview Changing Landscape for Audit Committees and Executive Management: Strategic Directives National vs. Globalization Changing Priorities Economic crises Issues and Risks Reputation ahead of everything else Competing Opinions Options to Consider Everyone has an ‘Agenda’

Changing Landscape Activism on the Increase Governments - From accounts to accountability Shareholders – From pay to board presence Regulators – Going where no one dared Donors - Corruption gets in the way Employees – Pushing for more say And so…

And so for Audit Committees and Executive Management It’s a call to: Stay awake Be watchful Be alert Be ready to respond Obtain assurance But who adds greatest value?

The Obvious Choice Internal Auditing: Independent Strategic Credible Professional Mandated

Independent Aligned to business objectives but Independent Mindset Focused on risk Thinking ahead of Management and the Audit Committee Finding the right balance Practical And strategic...

Strategic Know your professional requirements Engage Management and your Audit Committee Interact with your colleagues Train yourself and your staff Focus on the higher risk issues Educate your Management and your Audit Committee Assure and advise Stand firm on principle Sustain the effort And credible…

Credible Steady and Dependable – Understand your role in corporate governance Willing to see Willing to hear Willing to act Willing to share Accountable And professional…

Professional Being, not just saying Leaders in the organization Visionaries Willing to stand up Willing to stand out Sustaining the effort Active in the IIA Professionalism assessed And authorized…

Mandated Authorized to Assure Know the business objectives Understand the risks Assess the key processes and controls Combine the audit results Provide assurance So, what should be done?

What adds greatest value? Establish your credentials Promise what you must - ASSURANCE Deliver what you promise - TRUST Work to international Standards - PROFESSIONALISM Develop your talents - STEWARDSHIP Sustain your efforts Think beyond today - STRATEGY In summary

Summary Look Out Stay Focused Stand Firm

Questions J Graham Joscelyne Managing Director Joscelyne + Associates, Inc.