Presentation at the Malawi Economic Growth Conference, Mt Soche Hotel, Blantyre, 2 Dec 2015

Thokozile Kuwali- Mushani

How Internal Audit Changes the Economy· Audit Reports That Command Attention and Impact Change· Cooking Books: Financial Statement Fraud Issues and Examples· Addressing Emerging IT Security Risks· Essential skills for today s public sector Internal Auditor· Interpersonal Dynamics

Accountants/Auditors Partnering in building and sustaining Economic efficiency and

effectiveness

Contents Prologue

Economic growth in Malawi Professional accountants

Building economic efficiency and effectiveness

Internal auditor Sustaining economic efficiency and

effectiveness Why partnership … How to partner… Epilogue

PrologueEconomic Growth in Malawi

Prologue..

Prologue….

What are we talking about when we say economic growth?

Prologue ….Just some facts• Malawi ranked160/182 countries (HDI).• 74% under US$1.25/day and 90% underUS$2/day threshold –

UN• Only 12%of households have access to credit.• Over 40% , the majority being female-headed households live

below the poverty line.• 45% of the <5 years are stunted• 16m pop. against 11m in -2000 (94000/42000km(sq))

Prologue cont….

MDGs for Malawi Eradicate extreme poverty and hungerAchieve universal primary educationPromote gender equality and empower womenReduce child mortalityImprove maternal health Combat HIV & AIDS, Malaria and other diseases Ensure environmental sustainability Develop a global partnership for development

After the MDGs are we anywhere better economically ?

Challenges !!!!!!!!!!!!

• The MDGs are too beautiful • Implementers of the MDGs are in the opposite side • Mostly skewed towards women• Selfishness and greed• Too “poor” to handle the thinking• Complacent mind , lazy fair attitude • Not me syndrome• No ethics at all• No professionalism …AC/IA…................

Where we are !!!!

Sustainable Development Goals (SDGs)gender neutral and for all

Need for building and sustaining the goals for economic growth

Accountants need to do their part

What are the proposed Global Goals?

Building economic efficiency and effectiveness – Accountants

• Accountants must put in place actions that manages risks and increase the likelihood that establishes objectives and goals will be achieved, incl SDGs

Building CONT…

Accountants and Governance?

Building CONT..…

Accountants and ERM (COSO)1.Effectiveness and efficiency of operations 2.Reliability of financial reporting3.Compliance with applicable laws and regulations

• Tax Laws • IAS

Building CONT….

• Ethical – tone at the top ( words vs deeds)

• Org structure for comms• Clear definition of

responsibility • Delegation of authority • Accountability measures

Accountants and controls ?• Qualification- proficiency ,

competence and CPD • Reconciliations • Security of assets and

records• Segregation of duties • Disaster recovery plan and

BCP

Building CONT….

Professionals Accountants “have a responsibility “

Sustaining economic efficiency and effectiveness - Internal Auditors

• “IA come in to give assurance that the building is solid and is built on a solid ground “

Why Partnership ?

• Convergence- thin line in todays world on what we do we all look at

Governance , Risk and Controls

Independence and objectivity

Quality reporting financial /non financial

Advisory role

HOW TO PARTNER

Auditors/ Accountants • Review and assurance• Consultancy services

Auditors/Public A/C (Ext)• Reliance for efficiency • Follow up on mgt letter

recommendations• Coordination • Sharing reports/ Working

papers

Epilogue

Epilogue