OSC Guidance and Training for Internal Audit and Internal

Control Practitioners Tina Kim

John Buyce

Training Requirements for Auditors and Internal Control Professionals

Yellow Book: Chapter 3 – General Standards: Continuing Professional Education (CPE)

• Minimum of 24 hours of CPE every 2 yearsGovernmentSpecific or unique environmentAuditing standards and applicable accounting principles

• Additional 56 hours of CPE for auditors involved in Planning, directing, or reporting on GAGAS assignments; or Charge 20 percent or more of time annually to GAGAS assignments

• Minimum of 20 hours of CPE each year

3

Red Book: Attribute Standards: 1230 Continuing Professional Development

• Internal auditors must enhance their knowledge, skills, and other competencies through continuing professional development.

• PA 1230-1: Internal auditors with professional certifications are responsible for obtaining sufficient CPE to satisfy requirements related to the professional certification held.

NYS Internal Control Task Force: Continuing Professional Education

• To be effective in a changing world, all audit staff need to maintain and enhance their technical competence through a program of continuing education. Professional audit standards, as well as various professional licensing programs including the Certified Internal Auditor and the Certified Public Accountant are all subject to periodic continuing education requirements. The Internal Control Task Force report provides an extensive discussion on the need for continuing education and training of the State’s internal auditors. The consensus recommendation is that each auditor is required to obtain at least 80 hours of continuing professional education every two years, with not less than 20 hours obtained during any single year. This requirement is consistent with the level of training required of other professionals conducting audits of government programs. The Task Force report appendix entitled Guidance on Continuing Education Requirements for New York State Internal Auditors provides a more detailed discussion of these requirements, and is incorporated by reference as part of these standards.

The Basics Keeping up with Changes in Standards and the Profession

IIA IPPF2015

GAO Green Book 2014 All requirements from the 1999 Green

Book have been incorporated in the

2014 revision.

The 2014 revision provides more detail

of the requirements to help

management better understand and

implement the standards.

The 2014 revision will be effective

beginning with fiscal year 2016 and the

Federal Managers’ Financial Integrity Act

(FMFIA) reports covering that year.

Management, at its discretion, may elect

early adoption of the 2014 Green Book.

GAO Fraud Risk Framework 2015 The Framework complements existing federal efforts, including

• the revised Standards for Internal Control in the Federal Government (effective Oct. 1, 2015);

• improper-payments legislation; and

• Office of Management and Budget guidance on improper payments (OMB A-123).

However, the Framework is fraud-specific and applies to nonfinancial, as well as financial, fraud risks.

OMB Uniform Guidance

• Implementation of Uniform Guidance Compliance testing (affects all 2015 engagements)• New audit requirements (affects primarily 12/31/15 year-ends and beyond.• Complex transitional requirements

• Year-ends ending after December 26, 2014 and before December 26, 2015 (e.g., March 31, 2015, June 30, 2015, and September 30, 2015 year-ends)• Non-federal entities will have to adopt new administrative requirements and cost principles relating to all new

federal awards and to funding increments to existing awards• Single audit requirements continue to use “old” regulation (i.e., OMB Circular A-133)• Auditor compliance testing will be affected by client adoption of “new” UG regulation (i.e., will likely have to

test some awards subject to the “old” OMB Circulars and some the “new” UG regulation)

• December 31, 2015, year-ends and beyond• New single audit requirements (subpart F) apply• Auditors may have to test some awards subject to the “old” OMB Circulars and some the “new” UG regulation

for several years

2015 State & Local Government Developments

GASB Statements Issued

• Stmt 73: Non-Trust Pensions

• Stmt 74: OBEP Plans

• Stmt 75: OPEB (employers)

• Stmt 76: GAAP Hierarchy

• Stmt 77: Tax Abatement Disclosures

• GASB Implementation Guide: 2015-1

Standards and Guidance Webinars 2015

Webinar Topic Date Presenter(s)

GAO Yellow Book Webinar January 2015 Eric Holbrook (GAO)

GAO Green Book Webinar

May 19, 2015 Christie A. Pugnetti (GAO)

Good Governance in the Public

Sector

June 16, 2015 Vincent Tophoff (IFAC)

Enterprise Risk Management October 29, 2015 Mike Wetklow (OMB)

Building a Strong FoundationThe Fundamentals

Red Book-Yellow Book Comparison The purpose of the second edition of this document is to provide updated information related to identifying similar principles and key differences between each organization’s standards. In addition, the document is designed to provide suggestions for consideration should a government internal audit organization be required to or elect to comply with both organizations’ standards in conducting audit work.

Ensuring a Standards Conscious Organization

Certified Internal Auditor Training

• This is an SGA initiative directed towards developing auditor skills through obtaining the Certified Internal Auditor certification. This certification will improve the audit skills and knowledge of the audit staff.

• 2 Classes: One in NYC and one in Albany

• Participants: 69 auditors.

On the Job Training

• Quality Assurance Review Team

Collaboration and BenchmarkingLearning and Sharing with Others

Benchmarking and Learning from Others

• The Recovery Accountability and Transparency Board • Using unstructured data for risk management

• Government Accountability Office • Applied research and methods

• General Services Administration • Mobile and government innovations

• Other States through NASACT • The state of data analytics

Sharing our Expertise and Learning from Others • Indonesia – Public Private Partnerships

• China – Benchmarking

• Taiwan – Environmental Audit

• Korea – Participatory Audit

• Japan – Training of Internal Auditors

• Germany – Use of Data Analytics for Operational Decision Making

• Other States (MA, NJ)

• Participating in Professional Conferences

Learning New Skills

What are we working on now • ARC GIS

• Unstructured Data

• Network Analysis

• Predictive Analytics

OSC’s Initiative to Support Internal Audit and Internal Control Professionals

Fall of 2015 • · White Collar Fraud - Protect Yourself

• · Enterprise Risk Management

• · Investigative Interviewing

• · Uncovering Fraud With Financial and Ratio Analysis

There is no cost for the training, and CPEs are available for all classes

250 seats available for State and City Agency Staff

Upcoming Training

Investigative Interviewing

• Presenter - Rich Byington, John Reid and Associates, Inc.

• November 19-20, 2015 (2-day class)

• CPEs: 14

Uncovering Fraud with Financial and Ratio Analysis

• Presenter - ACFE

• Course Level - Advanced

• Albany - Dec 2015 (exact date TBD), NYC - Nov 2015 (exact date TBD)

• CPEs: 14