Bombay Public Trusts Act.
Querist :
Anonymous
(Querist) 27 May 2018
This query is : Resolved
The internal auditors of a charitable institution registered under the Bombay Public Trusts Act, are elected by the general body at its annual general body meeting. Fearing an expose of frauds, the managing committee is not cooperating with the Internal Auditors in carrying out the audit.
Can the accounts of the trust be finalized and the AGM held , without the internal audit report ? Can the statutory auditor complete his audit and issue the report, without waiting for the Internal Audit report.?
Ms.Usha Kapoor
(Expert) 28 May 2018
The IIA’s View: Essential Elements for
Public Sector Audit Organizations
1.
Organizational independence
2.
A formal mandate
3.
Unrestricted access
4.
Sufficient funding
5.
Competent leadership
6.
Objective staff
7.
Competent staff
8.
Stakeholder support
9.
Professional audit standards
The Impact of Culture on Fraud and Corruption
A toxic culture
presents a perfect
breeding ground
for fraud and
corruption!
Culture: The “Moral Fabric” of an Organization
“Culture is the self
-
sustaining pattern of
behavior that determines
how things are done.”
-
Katzenbach, Oelschlegel, and Thomas
A Simpler Definition of Culture
Culture is “how we do
things around here.”
When Walk Diverges From the
Talk,
Culture
Can Go Toxic
The way things
are
done around here...
The way things
should
be
done around here...
A Toxic
Culture
Source: Global Perspectives: Auditing Culture
–
A Hard Look at the Soft Stuff; © 2015 The Institute of Internal Auditors, Inc.
Three Lines: Defending the Organization Against
Cultural Risks
Governing Body/Audit Committee
Senior Management
Third Line of
Defense
First Line of
Defense
External Auditors
Second Line of
Defense
Regulators
Oversight
functions such
as ethics office
monitor culture
-
related risks
and compliance
with policies
and
procedures.
Internal audit
assesses
culture.
Are values and
behaviors that
drive strategy
and good
performance
embedded
throughout the
organization.
Management is
responsible for
setting,
communicating,
and modeling
desired values
and conduct.
Third Line of
Defense
Strategies for Auditing Culture
Identifying culture as the
“Root Cause” in Individual
conclusions/findings
Audits of culture within lines
of service, business units, or
geographies
Issuing capstone or theming
reports based on multiple
inputs
An enterprise
-
wide
assessment of culture
The “Root Cause” Can Often Be Culture
CULTURE
It is tempting to only look at specific issues
and how to correct them.
Did certain behaviors cause the problem?
Is culture a fundamental root cause?
•
When controls fail
•
When risks aren’t managed
•
When regulations or laws are violated
Parting Thought: Words to Live By
“With light comes heat, and with heat comes
action, and action is what we want. How can
we make government work better? By
improving the economy, efficiency, and
effectiveness of government
.”
P. Venu
(Expert) 28 May 2018
Any suggestion depends upon the bylaws of the Society.
R.Ramachandran
(Expert) 30 May 2018
Ms. Usha Kapoor:
What is the query and what is your answer?
R.Ramachandran
(Expert) 30 May 2018
:@Anonymous:
Statutory Auditor need not wait for the report of the Internal Auditor. The Statutory Auditor can complete the Audit and submit its report independently. If after having appointed the Internal Auditor no co-operation was extended or no I.A. Report was obtained in time, then it is for the members of the Society to question the management in the AGM.
In the meanwhile, if you feel aggrieved by the actions and activities of the Management, better make a written complaint to the Authorities concern.
