As part the celebration of the 50th Anniversary of the OECD, OECD Internal Audit and the OECD Public Governance and Territorial Development Directorate, in partnership with the Institut Français de l’Audit et du Contrôle Internes (IFACI),  the French Chapter of The Institute of Internal Auditors (The IIA) organised a Seminar on: Internal Control and Internal Audit: Ensuring Public Sector Integrity and Accountability, which was held on 13 April 2011 at the OECD Conference Centre in Paris.

Fostering integrity and combating fraud and corruption in the Public Sector is a challenge for Governments and Public Administrations, particularly in times of economic crisis. To succeed, Executives in Public Administrations must be equipped with appropriate, effective and efficient instruments. How can Internal Control and Internal Audit contribute to safeguard integrity, and prevent Fraud and Corruption?

The Seminar offered a unique opportunity to share experience, to debate on means to address this challenge, and to identify good practices with key actors:

• The OECD Public Governance Committee with the mandate of promoting good governance through efficiency, transparency, accountability and integrity of public institutions;

• The OECD Network on Public Sector Integrity that contributes to improving public sector governance through safeguarding integrity and preventing corruption in public organisations;

• Internal Auditors of Central Government Ministries and Public Administrations from several countries;

• Representatives of recognised Internal Audit and Internal Control Professional Associations, such as IFACI and The IIA.

Agenda

Opening and introduction

Mr. Richard Boucher, Ambassador and Deputy Secretary General –  OECD

What are the challenges faced by Internal Audit in contributing

to mitigation of Fraud & Corruption risk?

During this session, OECD Internal Audit and OECD Public Governance and Territorial Development Directorate presented the responses of Ministries Agencies and Central Government Ministries participating in the survey, and trends as observed across sampled countries, based on a report that will be disseminated.

The presentation focused on the following key issues :

• Does the existing Internal Control Framework provide Internal Audit with a sound basis upon which to fulfill its Fraud & Corruption responsibilities?
  
  
• Do the Internal Audit mandate and reporting lines enable it to fulfill its Fraud & Corruption responsibilities?
  
  
• Is Internal Audit competing with, or complementing, other functions with Fraud & Corruption responsibilities?

The presentation will be followed by a Questions and Answers session.

      Roundtable dicussions                                     

This session focused key issues related to the role of Internal Audit in enhancing integrity and contributing to mitigation of Fraud & Corruption risks.

The round table discussions focused on the following questions:

• What are the advantages and disadvantages of having a function separate from Internal Audit charged with prevention, detection and investigation of Fraud & Corruption?
  
  
• Where there is an entity separate from Internal Audit charged with prevention, detection and investigation of Fraud & Corruption, what factors are necessary such that both may fulfill their respective roles in mitigating risk of Fraud & Corruption?
  
  
• What other instruments are necessary for Internal Audit to be efficient in mitigating risk of Fraud & Corruption, e.g. in terms of independence, existence and composition of Audit Committee, system to ensure follow-up to recommendations, etc…?

Moderator:

Mr. Dominique Pannier, OECD Director of Internal Audit

Interventions by lead-off speakers, followed by a Questions and Answers session.

               Lessons learned and ways forward 

This session focused on ways to improve the role of Internal Audit in preventing and detecting fraud & corruption.

Presentation:

Mr. Richard Chambers, President and Chief Executive Officer of The Institute of Internal Auditors

Interventions by lead-off speakers, followed by audience-wide debate.

Conclusions  

Mr. Mario Marcel, Deputy Director of the OECD Public Governance and Territorial Development Directorate

Background documentation

• Results of the Survey

Links to related information

• OECD Internal Audit 

• IFACI (Institut Français de l'Audit et du Contrôle Internes), the French Chapter of The Institute of Internal Auditors (The IIA)

• The Institute of Internal Auditors 

• Integrity Framework

• Committee of Sponsoring Organisations of the Treadway Commission

Further information

For further information please contact:

OECD Internal Audit Service:

• Ms. Anne-Marie Leroux,  Internal Auditor  –  OECD
  Email: Anne-Marie.Leroux@oecd.org    Phone: 01 45 24 78 17

• Mr. Edouard Chansavang,  Internal Auditor  –  OECD
  Email: Edouard.Chansavang@oecd.org    Phone: 01 45 24 98 56

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