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6
NEWS
February/March 2012 www.esb.ie/em
The faces of Group Internal Audit
ESB subscribes to best practice corporate governance; a key component of which is the policy of the Board of ESB to have and support a Group Internal Audit function that operates to best international standards.
GROUP INTERNAL AUDIT (GIA) is responsible for the review of business activities across all areas of ESB Group to independently give assurance to the Board and management on the adequacy of internal control, the management of risk and the achievement of proper, efficient, effective and economic use of resources.
What is the staffing in GIA?
GIA has eighteen staff members comprising the Group Internal Auditor (Michelle Mullally) supported by two audit managers (Peter Brady and Eamonn Connolly), a pool of up to fourteen auditors and one office administrator. The team includes accountants, engineers, I.T. specialists and business graduates. Currently the team has an average of 22 years experience in ESB with staff who have worked in every business unit in ESB at some time in their ESB career - the background and experience of the team is reflective of the range of ESB’s business activities. Each member of the team is typically seconded for a three year period to GIA from the business units but it can also be for shorter or longer periods.
What types of audits are performed?
Peter: “The range of audits performed in any year is quite extensive. Audits can be performed in any business unit, subsidiary and associated company in any location in ESB. The types of audit can include operational, financial, system reviews, project reviews, regulatory compliance reviews and value for money exercises. There is at least one overseas audit conducted each year; Pakistan, Bahrain, Corby and Spain are recent examples”.
Does GIA get involved in anything else?
Eamonn: “GIA perform fraud investigations when required. GIA also perform a small number of non audit or consulting type assignments. These are intended to add value and improve governance, risk management and control processes for the client. Examples include counsel, advice, facilitation and training. The same principles of independence, objectivity and confidentiality that apply to general audits are maintained throughout fraud investigations and consulting assignments”.
Does anyone audit the auditors?
Michelle: ‘We aim to apply best practice standards to our own processes and procedures within GIA. In 2011 Ernst & Young conducted an external quality assessment and found that GIA was operating in full conformance with the International Standards for the Professional Practice of Internal Auditing (as published by the Chartered Institute of Internal Auditors). In addition since 1994, GIA’s quality management system has been audited on an annual basis by NSAI to verify continued ISO 9001 accreditation’.
Where can you find more information on internal auditing?
GIA has a comprehensive website on ESBnet that has recently been updated; go to the ‘ESB Org’ banner, then select ‘Corporate Centre’ and you’ll see a banner for ‘Group Internal Audit’.
Jargon buster
Corporate Governance:
The combination of processes and structures implemented by the board to inform, direct, manage and monitor the activities of the organisation toward the achievement of its objectives.
Internal Control:
Any action taken by management, the board and other parties to manage risk and increase the likelihood that established objectives and goals will be achieved. Management plans, organises and directs the performance of sufficient actions to provide reasonable assurance that objectives and goals will be achieved.
Risk Management:
A process to identify, assess, manage and control potential events or situations to provide reasonable assurance regarding the achievement of the organisation’s objectives.
