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A consultative forum in Nairobi, Kenya, shores up best practices for government audit professionals in developing nations.
FOR MOST OF ITS HISTORY, INTERNAL AUDITING served as a simple administrative procedure comprised mainly of checking documents, counting assets, and reporting on past events to various types of management. But in recent times, a combination of forces has led to a quiet revolution in the profession. Governments moving toward democracy must demonstrate accountability in the use of public money and efficiency in the delivery of services. Larger and more complex systems demand greater competency and professionalism from internal auditing, and scarce resources must be deployed more efficiently to minimize and manage risk. Moreover, technological advancement makes it possible to track and analyze data with continually increasing speed. A world that keeps turning ever faster makes it essential for governments to be well-advised by internal auditing.
Even so, the state of internal auditing in the public sector varies widely from nation to nation, and making the change to modern internal auditing can be a substantial undertaking. To make the transition from merely ensuring compliance with rules and regulations - the socalled "tick and flick" approach - to truly delivering added value requires more than just organizational changes. A massive shift in culture is required as well - especially in countries struggling with a less-than-robust environment for internal auditing. In many settings, staff is poorly paid and unmotivated, ethical standards are weak, and governance practices are ineffective. Additionally, many organizations lack support from senior management and regulatory bodies, and the internal audit function is often anything but independent.
Tackling these concerns was at the heart of the Consultative Forum on Internal Audit hosted by The World Bank and The Institute of Internal Auditors in Nairobi, Kenya, in March 2004. In its diagnostic work, The World Bank has carried out Country Financial Accountability Assessments for 27 countries in Africa, where internal audit challenges have been identified as cutting across the region. Forum participants identified the need for major changes in internal control and audit systems to improve public finance management, enhance service delivery, and take steps toward eradicating poverty.
ADVANCING THE PROFESSION
The forum brought together 52 stakeholders from Kenya, Uganda, Malawi, and Ethiopia to discuss and plan...