Welcome to the IIA Somalia Chapter!

Welcome to the IIA Somalia Chapter

IIA Somalia gained approval to become affiliate of The Institute of Internal Auditors (IIA) in the summer of 2023.  IIA Somalia is a non-profit professional organization dedicated to the advancement and development of the internal auditing profession in Somalia. Our chapter has 89 members representing major industries, government, and public practice in Somalia. We strive to meet the needs of our members and welcome any feedback or questions, contact us at IIA-Somalia@theiia.org.

Chapter Officers

Iman Yusuf Iman

President

Hassan Ahmed Ali

Vice President

Fahran Ahmed

Board Member

Ahmed Ahmed

Board Member

Mission

IIA Somalia's mission is to develop the internal audit profession in Somalia, by preparing and implementing training and educational programs.

Vision

To be the first professional reference for internal auditing in Somalia, working effectively continuously to develop and advance the profession with the relevant local and international professional institutions.

What is Internal Audit?

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations.

At its simplest, internal auditing involves identifying the risks that could keep an organization from achieving its goals, making sure the organization’s leaders know about these risks, and proactively recommending improvements to help reduce the risks.

For internal auditing to be effective, the organization’s leaders must be open to discussing tough issues and seizing opportunities to make necessary changes for improvement. And the internal auditors must have an independent reporting line to the highest governing body (e.g., the audit committee of the board of directors), ensuring them the requisite authority to access all areas of the organization and know that they will be supported if and when their views differ from those of management.

Internal auditors’ independence and broad perspective of the organization make them a valuable resource to executive management and the board of directors. They ensure that the organization is held accountable to its stakeholders, whether those stakeholders are investors (as in the case of a publicly traded company) or the general public, served by a government organization.

Ultimately, internal auditors add value to their organizations by providing assurance, insight, and objectivity.

Internal auditors can save their organization substantial amounts of money and protect its reputation in the marketplace by identifying operating inefficiencies, wasteful spending, employee theft, fraud, and cases of noncompliance with laws or regulations, for example. They keep an eye on the corporate climate and perform a variety of activities such as assessing risks, analyzing opportunities, suggesting improvements, promoting ethics, ensuring accuracy of records and finanacial statements, educating senior management and the board on critical issues, investigating fraud, detecting wasteful spending, raising red flags, recommending stronger controls, monitoring compliance with rules and regulations, and much more!

Seems like a lot to ask from one resource. Maybe for some, but for internal auditors, it’s all in a day’s work.

Definition of Internal Auditing

According to the Definition of Internal Auditing in The IIA's International Professional Practices Framework (IPPF), internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

Who Are Internal Auditors?

Internal auditors are explorers, analysts, problem-solvers, reporters, and trusted advisors. They bring objectivity and a variety of skills and expertise to the organization. They come from diverse areas such as finance, operations, IT, and engineering. Today’s internal audit professionals are revered for their critical thinking and communication skills, as well as their general IT and industry-specific business knowledge.

Still, people often confuse internal auditors with accountants or external auditors (entities the organization engages to provide an annual review of the financial statements). The differences are significant:

Internal auditors are, to a great extent, key to an organization’s success. They review the organization’s processes, operations, and goals. They provide objective, professional advice to all levels of management and pave the path toward continuous improvement.

Competent internal auditors follow the profession’s internationally accepted code of ethics and standards for professional practice. They identify the organization’s greatest risks and plan audit coverage accordingly. To demonstrate their professionalism and competence, some internal audit practitioners choose to obtain professional certifications such as the globally recognized Certified Internal Auditor® or Certification in Risk Management Assurance™.

The most valuable and effective internal auditors stay abreast of business trends, constantly cast their eyes to the horizon to scan for signs of trouble and are able to anticipate future challenges and risks.

Standards and Professionalism

Standards (theiia.org)

Overview of the International Professional Practice Framework (IPPF) and its mandatory and strongly recommended components 

Code of ethics

PRINCIPLES

Internal auditors are expected to apply and uphold the following principles:

• Integrity

The integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgment.

• Objectivity

Internal auditors exhibit the highest level of professional objectivity in gathering, evaluating, and communicating. information about the activity or process being examined. Internal auditors make a balanced assessment of all the relevant circumstances and are not unduly influenced by their own interests or by others in forming judgments.

• Confidentiality

Internal auditors respect the value and ownership of information they receive and do not disclose information. Without appropriate authority unless there is a legal or professional obligation to do so.

• Competency

Internal auditors apply the knowledge, skills, and experience needed in the performance of internal audit services.

RULES OF CONDUCT

1. Integrity
   Internal Auditors:
   • Shall perform their work with honesty, diligence, and responsibility.
   • Shall observe the law and make disclosures expected by the law and the profession.
   • Shall not knowingly be a party to any illegal activity or engage in acts that are discreditable to the profession of internal auditing or to the organization.
   • Shall respect and contribute to the legitimate and ethical objectives of the organization.
2. Objectivity
   Internal Auditors:
   • Shall not participate in any activity or relationship that may impair or be presumed to impair their unbiased assessment. This participation includes those activities or relationships that may be in conflict with the interests of the organization.
   • Shall not accept anything that may impair or be presumed to impair their professional judgment.
   • Shall disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review.
3. Confidentiality
   Internal Auditors:
   • Shall be prudent in the use and protection of information acquired in the course of their duties.
   • Shall not use information for any personal gain or in any manner that would be contrary to the law or detrimental to the legitimate and ethical objectives of the organization.
4. Competency
   Internal Auditors:
   • Shall engage only in those services for which they have the necessary knowledge, skills, and experience.
   • Shall perform internal audit services in accordance with the International Standards for the Professional Practice of Internal Auditing.
   • Shall continually improve their proficiency and the effectiveness and quality of their services.

About Institute of Internal Auditors (IIA)

Established in 1941, The Institute of Internal Auditors (IIA) is an international professional association with global headquarters in Lake Mary, Florida, USA. The IIA is the internal audit profession's global voice, recognized authority, acknowledged leader, chief advocate, and principal educator. Members work in internal auditing, risk management, governance, internal control, information technology audit, education, and security.

Mission

The mission of The Institute of Internal Auditors is to provide dynamic leadership for the global profession of internal auditing. Activities in support of this mission will include, but will not be limited to:

• Advocating and promoting the value internal audit professionals add to their organizations.
• Providing comprehensive professional educational and development opportunities, standards and other professional practice guidance, and certification programs.
• Researching, disseminating, and promoting knowledge concerning internal auditing and its appropriate role in control, risk management, and governance to practitioners and stakeholders.
• Educating practitioners and other relevant audiences on best practices in internal auditing.
• Bringing together internal auditors from all countries to share information and experiences.

History of Internal Audit

Historians have traced the roots of internal auditing to centuries B.C., as merchants verified receipts for grain brought to market. The real growth of the profession occurred in the 19th and 20th centuries with the expansion of corporate business. Demand grew for systems of control in companies conducting operations in many locations and employing thousands of people. Many people associate the genesis of modern internal auditing with the establishment of The IIA.

The year 1941 marked a major turning point. Victor Z. Brink, authored the first major book on internal auditing. And at the same time, John B. Thurston, internal auditor for the North American Company in New York, had been contemplating establishing an organization for internal auditors. He and Robert B. Milne had served together on an internal auditing subcommittee formed jointly by the Edison Electric Institute and the American Gas Association, and they agreed that further progress in bringing internal auditing to its proper level of recognition would be best made possible by forming an independent organization for internal auditors. When Brink’s book came to the attention of Thurston, the three men got together and found they had a mutual interest in furthering the role of internal auditing.

As an organizing committee, Brink, Milne, Thurston, contacted a small group of internal audit practitioners throughout the United States who expressed interest in forming a national – even international – organization for internal auditors. The IIA’s certificate of incorporation was filed on November 17, 1941, and just prior to the first annual meeting on December 9, 1941 at the Williams Club located at 24 East 39th Street in New York City, 24 charter members were accepted for membership. Thurston was elected as the first president of The IIA.

Membership grew quickly. It went from the original 24 members to 104 by the end of the first year, to 1,018 at the end of five years. By 1957, membership had expanded to 3,700 and 20 percent were located outside of the United States. More than 70 years later, The IIA is a dynamic global organization with more than 200,000 members worldwide. How did this grow from 24 enthusiastic men in New York City to what it is today? It has required selfless volunteerism, dedicated professionals, and most of all, people with a desire to make internal auditing a proud and distinguished profession.

Certified Internal Auditor (CIA) Part I Review Course

Course duration: July 15^th, 2024 to 31^st August 2024 -

Dates: Mondays and Thursday Time 7:00PM - 9:00PM

Method: Online

Costs: IIA Somalia Members: $250                     Non-Members: $350

Material: Candidate will receive Gleim Digital Book and Access to test bank included in the cost.

Description:

Please note that this training will be held online twice a week “Mondays and Thursday” over seven weeks from July 15^th 2024 to 31^st August 2024.

There will be 15 minutes break for each session.

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Tools for New Auditors

Learning and understanding the fundamentals of internal auditing is necessary step for the new internal auditor who wants to grow quickly within the profession. This training provides an overview of the life cycle of an audit engagement, including planning, examining the internal control environment and audit governance, obtaining and presenting audit evidence, and successfully wrapping-up the engagement. 

This course is designed for the new internal auditor – with 1-3 years’ experience, and who has a desire to boost their internal audit knowledge and skills, as well as their overall effectiveness within an organization.

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Financial Auditing for Internal Auditors

Financial auditing is key for an organization and its earnings, as it boosts its productivity. Conducting financial internal audits on a regular basis allows the organization to identify some aspects of the business units that have to be addressed. The results of the internal audit will also determine whether the company’s financial statements are accurate, complete, and compliant with the established regulations, which is critical for the organization to avoid fines if publicly traded.

In this course, participants will learn how key business processes relate to financial statements, as well as the impact of technology on financial auditing. The course will walk participants through an analysis of an organization’s financial statements using scenarios, where participants will calculate key ratios and analyze trends over time. By engaging in discussions on both historic and current fraud cases, participants will learn how to recognize key “red flags” in financial statement reporting.

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Fundamentals Risk-based Auditing

Risk-based auditing ensures that the internal audit activity is focusing its efforts on providing assurance and advisory services related to the organization’s top risks. Through risk-based auditing, the internal audit activity helps executive management and the board understand whether the organization’s risk management processes are sufficient and how to better achieve organizational objectives through good governance, risk management, and control. This requires internal auditors to have a working knowledge of basic concepts, frameworks, tools, and techniques related to risk and risk management.

This training is a great place to start. It starts with an overview of risk management principles, including foundational concepts such as the nature of risk, risk sources and categories, risk appetite, and risk tolerance. With an emphasis on theory, this course prepares new internal auditors to become effective participants in performing risk-based internal audits. This course includes interactive activities based on real-life scenarios that participants can apply to their own organization.

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Communication Skills for Internal Auditors: Interviewing and Negotiating

The importance of effective communication to business unit leaders, senior management, and the board, is a critical skill for individual internal auditors all the way to Chief Audit Executives (CAEs). Without strong interviewing and negotiating skills, internal audit cannot successfully carry out the internal audit engagement process, nor communicate its value to the stakeholders of the organization.

This training is complete with highly interactive individual and group activities, as well as role-play scenarios to provide internal auditors with opportunities to develop or sharpen their interviewing and negotiating skills. After completing this course, internal auditors will have a profound awareness of how to effectively interview and negotiate and be prepared to apply these skills in their organizations.

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Corporate Governance Webinar

Corporate governance is increasing in importance as stakeholders demand that those charged with governance should be monitored and held to account for their decisions and actions. The course will equip participants with the skills necessary to review and improve their organizations' corporate governance structure; analyze and promote their organizations’ ethics programs; and develop techniques to effectively assess their organizations’ corporate governance activities.

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Introduction to Fraud Examination & Internal Audit Function

This course will provide participants with an overview of the detection, assessment, investigation, and mitigation of fraud. This course also addresses fraud risk management and the importance of a fraud risk framework in mitigating fraud at an organizational level.

During this course, areas of potential high fraud risk will be discussed and recommendations for mitigation of fraud are presented.

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1st Annual Internal Audit Conference

The IIA Somalia will hold its 1st Annual conference to bring together different folks consisting of internal auditors, risk management and governance professionals, also company or organization leaders who have a great interest in upholding good governance to focus on the future of the profession and both new and existing opportunities to cement their role as trusted advisors for public sector, private sector, and not-for-profit making organizations.

The conference will prepare participants to embrace and learn new skills, explore technologies and ideas in the face of disruption, provide an opportunity to network with peers, and explore tools and techniques to respond effectively to shifting business, assurance, and risk landscapes. During the conference we will focus on innovation, data privacy, Internal Audit standards, Governance Risk and Compliance, emerging issues, leadership and ethics.

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Chairman’s Welcome Message.

After a long wait I am pleased to welcome you to Institute of Internal Auditors Somalia (IIA Somalia), the only professional body dedicated to the advancement and development of the internal audit profession in Somalia. IIA Somalia is an affiliate of The Institute of Internal Auditors (The IIA). which is headquartered in the U.S.A. The IIA is a global body with more than 200,000 members worldwide.

Our journey in becoming an affiliate of IIA started back in Sept 2020 with an email sent to chapterrelations@theiia.org asking for the criteria to open IIA chapter and informing them of the need for IIA presence in Somalia and in May 2022 I was given the go ahead to form a formation committee and prepare a case for IIA Somalia and as they say the rest is history.

IIA Somalia is proud to be the 22^nd Affiliate / Chapter in Africa and to join the small group of countries that IIA Global trusted them to advance the Internal Audit profession in Africa.

The role of internal audit is to provide independent assurance that an organisation's risk management, governance and internal control processes are operating effectively.

I know that Institute of Internal Auditors Somalia not only will help with IIA efforts of growing the internal audit profession in Somalia but also support the global development agencies’ efforts of establishing the principles of good governance and related legislations that will be the foundation of success for Somalia as a country.

IIA Somalia services will assist in the advancement of the profession and practice of internal auditing in Somalia through membership services, education, professional development, technical resources, and advocacy.

IIA Somalia is registered as a nonprofit organization and is run by volunteers. We currently have 75 IIA members and five board members.

As Chairperson of IIA Somalia I look forward to serving IIA members in Somalia, advocating the internal audit profession and contributing to better governance, transparency, and accountability in Somalia.

On behalf of the IIA Somalia Board of Directors, we look forward to your active participation of our events and activities. We also welcome suggestions for us to further improve and if you are interested to get involved in IIA Somalia and volunteer to help, please do not hesitate to contact us.

Yours sincerely

Iman Yusuf Iman, CIA, CPA, CFE, MAcc
Chairman
The Institute of Internal Auditors Somalia