1. Ministry of Defence of Georgia
Punching Above your Weight and Making Internal Audit Relevant
Nino Karazanashvili
Ministry of Defence of Georgia
1 November, 2018

2. The legislative Framework and International commitments;
Content
The legislative Framework and International commitments;
Major Processes in IA
Challenges
Key Success Factors

3. IA legislative Framework and International commitments
Law on “Public Internal Financial Control”
CHU – Ministry of Finance;
In MOD Georgia started functioning in 2014;
Georgia-EU Association Agreement (Association Agenda);
NATO Building Integrity Program.

4. Main Processes in the Internal Audit Department
Planning Audit Activities
Implementation of Annual Plan
Monitoring of Implementation of Strategic and Annual Plan
Reporting
Risk Assessment
Developing Strategic and Annual Plans
Approval of Strategic and Annual Plans
Engagements
Organizational Development
System Based Audit
Performance Audit
Compliance Audit
Financial Audit
IT Audit

5. Challenges - External/Internal within the organization
Implementation of FMC
Risk Management system
Awareness on Internal Control System and Internal Audit
Management of Expectations
Frequent Changes:
Environmental
Organizational
Financial Constraints

6. Challenges - Internal within the IA
Staying relevant and handling the pace
Doing things for the first time within the system
Limited resources
Maintaining adequate balance of skills and competency
Not compromising the quality
Attracting qualified staff in the public sector

7. Responses – Key Success Factors
Staying relevant - Orientation on High Risks
Focus effort where most needed
Considering cover on other assurance providers
Discussion with Senior Management on Major Risks
Risk Management within IA
Effective Reporting to Senior Management
Developing a programme that adds value
Managing expectations 
Easy to understand reports
Discuss the results of Audit before reporting to the Minister
Enforcing format on ongoing monitoring of IA and SAO recommendations
QAIP

8. Responses – Key Success Factors
Efficiency and Effectiveness of Audit Processes
QAIP
IA Risk Management
Developing and revision of relevant processes and procedures
IT solutions – Audit Soft
Organization Structure and Qualified Staff
Develop Optimal Structure
Skills development
Certification
Alternative resourcing models
International cooperation and experience sharing within Georgian public sector

9. Responses – Key Success Factors
IA Role and Place in the Organization is perceived correctly and fully
QAIP - external assessment
New types of audit engagements
IA Marketing