Page 1: COVER

[Text] 200 words

By. Catherine E. Fontillas

Program Coordinator for Marketing, Events, and Communication, IIA Philippines

*CHANGE FONT TO TAHOMA SMALLER FONT

MAKATI, PHILIPPINES I The Institute of Internal Auditors Philippines (IIAP) held its First General

Membership Meeting and Induction of Board of Trustees on February 22, 2019 at the Glass Pavilion,

Dusit Thani Hotel, Makati City.

IIAP’s Chief Operations Officer, Ms. Eloisa Acosta opened the meeting with her warm welcome remarks.

Acosta also headed the induction of the Institute’s new members coming from various industries.

Our guest speaker, Commissioner Antonieta Ibe, caught the attention of the attendees with her

informative speech on SEC’s View of IA’s Role in Governance, Risk Management, and Control. The

Institute is grateful to have her lead the induction of the new set of Board of Trustees.

The learning sessions include AMLC’s view of IA's Role in Compliance presented by Anti-Money

Laundering Council (AMLC) Bank Officer IV Mr. Noli Mora. Another topic was The Promise of Continuous

Audit of the Internal Audit Function tackled by Mr. Caesar Parlade, a Partner from Reyes Tacandong &

Co.

Two highlights of the event were the Outgoing Chairman Report by Past IIAP Chairman Mr. Joseph Ian

Canlas and the acceptance speech of Ms. Richel D. Mendoza, incumbent IIAP Chairman.

Ms. Emelbin Salvador, IIAP 1st Vice Chairman, VP External Affairs closed the event with smiles and hope

for IIAP’s future.

Page 2: 2019 Convention

2019 Convention

Joint Forum on the Revised Corporation Code: Changes & Challenges

26 March 2019

Dusit Thani Hotel, Makati City

Page 3: CERTIFICATION

New IIA Certificate Holders

Congratulations to the following individuals for obtaining an IIA Certification during January – March

2019!

1. Baldo, Frederick Magno, CIA 2. Cardenas, Francisco Jr. Latoza, CIA 3. Carreon, Marion Tiglao, CIA 4. Celestial, Edlyn Inlayo, CIA 5. Chua, Catherine, CIA 6. Corpuz, Rhadentor Cordero, CIA 7. Delos Santos, Rica Avisado, CIA 8. Donghil, Romerson Pagal, CIA 9. Ilar, Zara Kristin Madridejos, CIA 10. Macaspac, Glaiza Malonzo, CIA 11. Magnayon, Regine Anne, CIA 12. Manguiob, Nicole Lim, CIA 13. Montances, Jan Michael Figueroa, CIA 14. Nitro, Julia Therese Toledo, CIA 15. Olayvar, Ma. Fe Crispina II Barcelon, CIA 16. Ponce, Frances Ouano, CIA 17. Sano, Angela Viduya, CIA 18. Sultan, Ma. Luisa Santos, CIA 19. Unida, Joanne Panahon, CIA 20. Villanueva, Clarissa Leah Carvajal, CIA

1. Cua, Mike Jensen Escanuela, CRMA

2. Ogatis, Raizza Valdez, CRMA

3. Tinamisan, Raymund Acesor, CRMA

2018 IIA Global CIA Award Winners

The IIAP is proud to announce the 2018 list of Filipino candidates who excelled in the CIA® exams,

demonstrating their dedication and honoring the profession and their respective organizations.

Airish Ebreo, CIA of Petron Corporation garnered the Certificate of Excellence Award, being the next top

10 scorer globally after the Gold, Silver, and Bronze Awards. She also earned the highest score in the

Philippines. Karla Angeline Andrade, CIA of San Miguel Brewery, Jesselle Baldomero, CIA of Isla Lipana &

Co. / PwC, Reeva Calapatia, CIA of Megaworld Corporation and Tessalonica Cabeliza, CIA of Commission

on Audit, also one of the 2018 IIAP Board of Trustees, were recognized for their Certificate of Honor

Awards respectively. They were included in the next top 50 highest CIA exam scorers after the top 10,

Gold, Silver, and Bronze Awards.

These candidates received the William S. Smith Award, named in honor of William S. Smith, CIA, The IIA's

first chairman of the Board of Regents, a former IIA chairman of the board, and a driving force behind the

development of the Certified Internal Auditor® (CIA®) program.

Awards are based on individual performance on the core CIA exam parts (parts 1, 2, and 3). With year-

round testing, award recipients must pass each exam part on their first attempt within one year of taking

the first exam part.

In 2018, 7,846 obtained their CIAs globally and 107 of them were from the Philippines. Congratulations to

all who are committed to delivering a level of excellence to their organization and the internal audit

profession!

Application Window for CIA Challenge Exam for Specialty

Certification Holders

Eligible CCSA, CFSA, and CGAP certified individuals have the unique opportunity to earn the CIA

designation through the CIA Specialty Challenge Exam.

• There is only one exam, consisting of 150 multiple choice questions.

• Those interested can apply, register, and schedule the CIA Specialty Challenge Exam, 1 April

2019–15 December 2020.

• The exam will be available in English beginning July 2019 and in Chinese Traditional,

Japanese, Portuguese, Spanish, and Turkish beginning January 2020.

• All exams must be completed by 31 December 2020.

Public Registry for Active Certification Holders

• A public registry is an up-to-date registry of individuals who have earned an IIA certification and

maintain it via continuing professional education.

• A public registry is a common practice in the credentialing industry (ISACA, CFA, CPA, PMI, IMA,

etc.).

• Participation in the registry is optional and will include information such as full name,

certification(s) held, and country for “Active” certification holders only.

• Personal contact information will not be included.

The public registry will be available in April 2019, with the launch of the new CCMS

Congratulatory Lunch for 2018 IIA Global CIA Award Winners

The Institute of Internal Auditors Philippines (IIA-P) held a Certification Congratulatory Lunch for the 2018

IIA Global CIA Awardees recognized in the Philippines last March 27 at Jade Garden, Makati City.

Present in the event were the Certificate of Honor Awardees, Karla Angeline Andrade, CIA of San Miguel

Brewery, Jesselle Baldomero, CIA of Isla Lipana & Co. / PwC and Reeva Calapatia, CIA of Megaworld

Corporation.

They were joined by the past Presidents namely Ms. Edel Vegamora & Ms. Rebecca Sarmenta.

Mr. Nener Concepcion, Mr. Anthony Velasco, Ms. Abigail Blanca Peña, the 2018 Board of Trustees and

Mr. Norman Gabriel, a 2002 Certificate of Excellence Awardee, also a past member of the Board of

Trustees, celebrated the success with the Awardees.

The awardees rekindled their moments as they share with The IIAP Board their CIA journey. The IIAP Board

acknowledged their achievement for giving pride to the profession and the country.

The IIAP’s Chief Operating Officer, Ms. Eloisa Acosta and Ms. Valerie Javarez, Program Coordinator for

Certification spearheaded the annual celebration.

Page 4: MEMBER IN FOCUS

The IIA Tops 200,000 Members

The IIA’s membership crossed a key threshold and is now topping 200,000 worldwide. Over its 78-year journey, The

IIA has established itself as the global organization for all internal auditors who desire to practice with the greatest

competence and highest level of professionalism. Thank you for your role and dedication to our profession.

Page 5: SPECIAL FEATURE

SEC’S VIEW: INTERNAL AUDIT ROLE IN GOVERNANCE, RISK MANAGEMENT AND CONTROL

By. Atty. Victoria Tomelden

IIAP Trustee, Governance Committee

In recent years, there have been major changes in management’s expectations of Internal Audit. As the

complexities of business grow and the development of new technologies, changing regulations and

increasingly integrated global economies, internal audit function must evolve to meet the expanding

needs of management and other stakeholders to address these challenges and to keep pace and

respond to the changes. These are the opening statements of Securities and Exchange Commissioner

Antonieta F. Ibe during the Institute of Internal Auditors Philippines (IIA-P) 1st General Membership

Meeting (GMM) for 2019 held at Hotel Dusit Thani Manila.

Commissioner Ibe gave two (2) perspectives about the internal audit function, first from the global stand

point and from the local regulator particularly the SEC or the Securities and Exchange Commission.

Impact and influence of the Internal Audit function has strengthened globally

Commissioner Ibe shared that in the 2018 Global Survey of Internal Audit conducted by Deloitte, leaders

reveal that the impact and influence of the Internal Audit function has strengthened. The role has also

expanded from the traditional reporters and problem solvers to explorers, analyst, and trusted advisers.

Demand for more advisory support on strategic initiatives and the need to innovate

As the complexities of the business grow and new challenges are emerging, there have been increasing

demands from the internal audit function for more advisory support on strategic initiatives and a drive

for broader and deeper Internal Audit coverage using more efficient Internal Audit techniques.

Commissioner Ibe pointed out that instead of being focused solely on internal controls, Internal Audit

now must be more concerned with identifying opportunities, threats, and requirements while also

understanding the performance, risk and compliance that these elements have.

To keep pace with the evolving needs of the organization, Internal Auditors need to innovate. In

expounding this thought, Commissioner Ibe quoted Terry Hatherell, the Global Internal Audit Leader

Risk Advisory of Deloitte. According to Hatherell, being innovative means understanding how the

organization is evolving and how best to apply new approaches and technologies to serve the

organization’s needs while optimizing resources.

The Need to Develop Coherent Vision

In order to drive needed changes and prioritize initiatives for the function and the organization as a

whole, Internal Audit needs to develop a coherent vision for both the profession and the function. In

this area, IIA-P is recognized as being on the right track with its vision “To be the premier partner

enabling the Internal Audit profession to be indispensable to governance, risk management and control,

critical to enhancing organizational value”.

Roles of The Internal Auditors

From the SEC perspective, Commissioner Ibe identified three (3) critical roles that the Internal Audit

function is performing.

1. Internal auditors’ role in companies’ governance, risk management and internal control

Commissioner Ibe stressed the important role of internal auditor to enable the Audit Committee of the

Board to effectively dispense their important functions enumerated under the Code of Corporate

Governance. According to Commissioner Ibe, a strong Internal Audit contributes to good corporate

governance by providing the Audit Committee, the Board, and the management with independent

reviews of and suggestions for, improving the design and operation of the organization’s financial and

non-financial control environment, processes for identifying and monitoring risks, and governance.

2. The Role of internal Auditor on Information Technology or IT

With the fast changing IT invironment, it is very important to keep the company’s IT systems and

infrastructure updated and secured. Thus, it is the primary role of internal audit to independently and

objectively assess the controls, reliability and integrity of the company’s IT environment. This gives

assurance that IT systems are adequately protected, provide reliable information to users and help

reduce risk of data tampering, data loss or leakage, service disruption and cybersecurity incidents.

Commissioner Ibe also pointed out the need for internal auditors to be keep updated on latest

technological advancement like the Blockchain technology so that they understand the basics of the

technology and the evolving governance challenges that these may bring.

3. The Role of Internal Auditor in Anti-Money Laundering

With the recent money laundering heist involving the Bangladesh Central Bank and a local Philippine

bank, regulators are placing more importance on Anti-Money Laundering compliance than ever before.

Thus, the internal auditors of covered companies play a key role in ensuring compliance with the law.

The auditors have to ensure that the anti-money laundering procedures and policies laid down by the

company, as incorporated in its Anti-Money Laundering Manual, are being followed by the responsible

officers.

Overall, Commissioner Ibe highlighted the critical and indispensable role of Internal Audit in value

preservation and value creation in the organization they serve.

Page 6: IIA Global

[AD, no text]

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Promoting the Profession and Building Awareness.

May is International Internal Audit Awareness Month.

As an internal audit professional, you play an important role in raising awareness and elevating the

profession. IIAMay offers you an important opportunity to promote the profession among your

stakeholders.

For example, you can customize your email signature and social media accounts with the International

Internal Audit Awareness Month digital icon (depicted at right). You can hold a lunch-and-learn in your

workplace to dispel myths about internal auditing and explain the value that a well-resourced,

independent internal audit function can provide. You can also raise the profile of your internal audit

department’s staff members by featuring their biographies in an article for your company’s intranet or

internal newsletter.

Don’t let the opportunity pass to advocate the importance of internal auditing to your coworkers and

other stakeholders!

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Internal Audit's Technology Challenge Is No Easy Road

By Richard Chambers

Lifted from globaliia.org

I often refer to the end of the first quarter as "whitepaper season" for the internal audit profession. Typically starting in late February and into March, several key players in the profession publish reports that offer a glimpse into how we're doing.

Two recently released reports should raise serious concerns about internal audit's slow progress in adopting and adapting technology to execute its responsibilities: Protiviti's Internal Audit Capabilities and Needs survey, Embracing the Next Generation of Internal Auditing; and PwC's State of the Internal Audit Profession report, Elevating Internal Audit's Role: The Digitally Fit Function.

Protiviti's report indicates that three out of four internal audit groups are undertaking some form of innovation or transformation, but most are only beginning that journey. What's more, a significant number of functions have yet to get started. Worse yet, "Less than one in three internal audit functions currently have a roadmap in place to guide their innovation and transformation journeys," according to the Protiviti report.

Internal audit's efforts to become "digitally fit," as described in PwC's report, are equally uninspiring. For the purposes of the report, PwC defines digital fitness in two important components. First, the function has in place the skills and competencies to provide strategic advice to stakeholders and to provide assurance with regard to risks from the organization's digital transformation. Second, the function is changing its own processes and services so as to become more data driven and digitally enabled.

While the PwC report finds 19 percent of internal audit functions are digitally fit, and another 27 percent are taking definitive steps toward digital fitness, 54 percent are described as beginners who are just starting relevant activities or planning them "in far more ad hoc ways."

This is particularly troubling when one considers how long the profession has been talking about updating and transforming its processes. My message to attendees of The IIA's General Audit Management conference in March addressed many of the same themes. In my presentation, Auditing at the Speed of Risk, I lamented the profession's low adoption rates of next generation technology, reliance on weak approaches to identifying emerging and atypical risks, and minimal changes in decades-old audit processes.

What is needed is transformational change, which was the theme of The IIA's 2018 Pulse of Internal Audit. The Internal Audit Transformation Imperative urged practitioners to embrace agility, innovate, raise the level of talent, and engage more closely with boards. The closing words of the report are as relevant and urgent today as ever:

Internal audit's progress over the past, and the successes accomplished, will not be enough to carry the profession forward. Current times require changes in mindset and actions from all internal auditors. Complacency will lead to irrelevance, but decisive moves by CAEs will propel internal audit forward through the transformation required.

I don't wish to be an alarmist, but stakeholders are demanding more from internal audit. Reports such as the ones from Protiviti and PwC suggest we are not ready to meet those demands.

I debated whether to use a crossroads analogy to hammer home this message. At first I thought it a bit cliché. Every crisis doesn't have to be a choice of one path or another. But in this case a slight modification to the crossroads discussion offers an important added level of clarity and urgency.

Most people envision a crossroads as intersecting roads that offer alternatives on which way to go. But that vision is typically two-dimensional, like the x- and y-axes on a quadrant graph. The reality is that there is a third dimension.

In this case, the z-axis offers a measure of how steep the journey toward digital fitness has become. Until we commit as a profession to innovate our approaches, update stale and slow processes, and embrace technology, the grade will get steeper with each passing day. The other direction on the z-axis provides an easier road. Of course, that road is all downhill, which is a direction we can't afford to go.

Page 7-8: EVENTS

2019 IIAP Academe Activities

With the aim of planting the seeds of knowledge for the future professionals, The Institute of Internal

Auditors Philippines (IIA-P) partnered with Lyceum of the Philippines University Manila, Chiang Kai Shek

College and Adamson University in various activities last March.

"Doing your best and giving your hardest may not generate results right away. Consequently, not doing

your best and not giving your hardest will leave you with regret." wise and inspiring words from Mr. Erwin

Rommel Baluyut, CPA, CIA, CRMA, CFSA as he shared his experience in his IIA career talk for the Chiang

Kai Shek College's “Accountant's Colloquium 2019” last March 8. He was also invited by The IIAP to Lyceum

of the Philippines University’s "Accounting and Business Convention: Your Next Step Towards Global

Career Opportunities" last March 25 to help envision the graduating students about their career.

On its 2nd year, Adamson University’s 12-unit course, "Trends in IE: Internal Audit" was facilitated by The

IIAP through Mr. Ally Rannie Nicdao who dedicated his time & effort as a lecturer to the Industrial

Engineering graduating students. His class was conducted every Monday & Wednesday of March. The last

session was conducted last April 3, where an Integration Forum was held with Mr. Paul Balon, Mr. Oli

Galvez, Ms. Yanna Linan and Ms. Pia Alipio as speakers.

LYCEUM OF THE PHILIPPINES UNIVERSITY

"Accounting and Business Convention: Your Next Step Towards Global Career Opportunities"

CHIANG KAI SHEK COLLEGE

“Accountant's Colloquium 2019”

ADAMSON UNIVERSITY

"Trends in IE: Internal Audit"

1st General Membership and Induction of Board of Trustees

The newly inducted Board of Trustees for the year 2019.

Ms. Emelbin Salvador, IIAP 1st Vice Chairman, VP External Affairs, gives her closing remarks for the 1st

General Membership Meeting

Mr. Caesar Parlade a Partner under Digital Transformation Services at Reyes Tacandong & Co. delivers

his talk on The Promise of Continuous Audit of the Internal Audit Function

Mr. Joseph Ian Canlas, outgoing IIAP Chairman reports his incredible work during his leadership in the

Institute.

Commissioner Antonieta Ibe with Outgoing IIAP Chairman Mr. Joseph Ian Canlas leads the Oath of Office

during the Board of Trustees Induction Ceremony

The new set of Board of Trustees takes their oath as a sign of dedication of their time and efforts to the

Institute.

Commissioner Ibe captures the audience during her speech on SEC’s view of IA’s Role in Governance,

Risk Management and Control.

Mr. Noli Mora, Bank Officer IV from Anti-Money Laundering Council- Secretariat gives the audience a

dsicussion on AMLC’s view of IA's Role in Compliance

Ms. Eloisa Acosta, Chief Operations Officer of IIAP opens the 1st General Membership Meeting and leads

the induction of IIAP’s new members.

IIAP’s new members pose with the Board of Trustees

SAVE THE DATES

Public run seminars

MAY

Computer Assisted Auditing Techniques Using Excel May 18 & 25

Project Risk Management May 18 & 25

COSO Based Internal Auditing May 24 - 25

NEW! Root Cause Analysis for Internal Auditors May 25 &27

NEW! Understanding IT risk management: A Guide for new

Internal auditors May 24 - 25

Building and Implementing Effective Internal Controls May 25

JUNE

NEW! Cybersecurity using NIST Framework June 7 - 8

Audit Rating for Banks June 8

Audit of Marketing and Sales June 8 & 15

Auditing The ERM Process June 10 - 11

Audit Analytics June 14 - 15

Writing Effective Audit Report June 14 - 15

Preparing Quality Audit Workpaper June 15

An Operational Review of the Security Operations Center June 21 - 22

Insurance Fraud: A Damaging Practice Against a Thriving

Industry June 20 - 21

Fundamentals of IT Auditing June 21 - 22

Internal Audit's Financial Auditing June 22 & 29

Operational Auditing Evaluating the Supply Chain June 22 & 29

Process Evaluation and Review Techniques (Adaption AIBP) June 28 - 29

Audit Analytics CEBU June

NEW! Risk Based Auditing for Insurance June

JULY

Cybersecurity Auditing in an Unsecure World July

Audit Rating System July

Innovation in Internal Audit: Unraveling the Unknown July

Quality Assessment of Audit Activity July

Auditing the Business Continuity Management System July

Risk Based Auditing: A Value Add Proposition July 23 - 24

Auditing the HR Process July

Assessing Risk Ensuring Internal Audit Value July

Audit of Construction Projects July

Risk Assessment and Business Process Mapping July

Determining Key Risk Indicator for Effective Audit Analytics July

Audit of Occupational Safety and Health Management July

NEW! Attitude and Behavior of Internal Auditor July