Positioning Internal Audit as a Strategic Asset

Kathryn McLay, Woolworths Limited CAE and IIA Australia Chairperson shared her experience working with the Audit Committee, her management and her team in shifting the internal audit function at Woolworths Limited. Woolworths has 3000 food, grocery, liquor, petrol, general merchandise and consumer electronics retail stores, 180,900 employees and $43 billion in sales.

Highlights included changing the perception through the approach to the responsibilities of the internal audit function:

• The way the function communicates it's issues both through the verbal and written content shared with management and the board; telling the story versus limiting content to bulleted, control point based narrowly focused content
• Evaluating the way the team asks questions, approaches the work and considers the business implications of the reviews they are performing
• Mentoring the team to ensure they are comfortable with new communication and delivery approaches being introduced
• Identifying and seeking business acumen, inquisitiveness, humility, effective communication and a practical approach to roles and responsibilities in all the members of the team.

Leisure Time with Colleagues

A leisure highlight of the conference was joining international internal audit leader colleagues from India, Oman, Qatar and Sri Lanka at an India Premier League (IPL) cricket match between New Delhi and Calcutta. The IPL is being held in Johannesburg because the 4 week India election process has drawn away needed security resources normally assisting with the cricket match. It was a great experience including much in the way of "Americanized" type viewing entertainment; fireworks, cheerleaders, flags and shirts, etc.

We even saw the makings of a small security "skirmish" with a few rowdy fans right near us in a sea of 30,000 being viewed by millions in India!

Topping it off was the quality time spent with internal audit leaders from the other side of the world, enjoying the game and dinner together. Really getting to know more about each other, our families, and ofcourse our audit experiences and views regarding the future direction of the profession. Clearly this was a great bonus experience.

Opening Remarks IIA International Conference, South Africa

Dr. Judge Mervyn King, Chairman of the King Committee on Corporate Governance, in addition to a long list of impressive credentials, gave opening remarks. Dr. Judge King provided a useful perspective regarding the evolution of the corporate organization, including it's increased expectations to be accountable not only for delivering strong financial results and other more narrow, short term priorities, but in the wider

• Human
• Social
• Natural, and
• Financial capital factors of a corporation.

In that context the internal audit functions responsibilities if working effectively should include being

• The right arm of the board
• Trust and confidence of the board
• Give serious consideration to having executive committee membership
• Challenge risk management effectiveness
• Fulfill regulatory requirements, and
• Address compliance

CAE's need to be credible, have good leadership skills, be good communicators, have a strategic mindset and be good networkers

IA's role should rise, but it is up to the internal auditor for this to occur.

International Institute of Internal Auditors Conference-Johannesburg, South Africa

This year's conference kicks off today in the Sandton Convention Centre in the Sandton suburb of Johannesburg, South Africa.
An anticipated 2,000 attendees is expected to include a very small North American representation. This blog will share a daily update of conference highlights, keynote speakers, exhibitor information, etc. intended to prove beneficial to those of you unable to attend the conference.