2016 In Review

Internal Audit

The Citadel at Pharaoh’s Island, a UNESCO World Heritage Site in the Gulf of Aqaba, was built in 1170 by crusaders. The island is surrounded by coral reefs and an underwater mountain that plunges 24 meters to a huge table of corals.

Being the first Internal Audit Group in Egypt complying with international standards (IIA Professional Practice Framework), CIB Internal Audit Group is continuously striving to keep itself ahead and delivering audit services according to international standards.

CIB Internal Audit Group is backed by a prudent Audit Committee of the Board of Directors, which ensures the independency of the IAG as the Third Line of Defence, reviewing activities of the first two lines of defence based on the risk-based audit plan and the methodology approved by the Audit Committee.

The role of Internal Audit Group is to provide independent assurance to the Audit Committee, Senior Management and the regulators of the efficiency and effectiveness of governance, risk management and internal controls to mitigate exposure to risks and recommend enhancements if necessary on an on-going basis.

Internal Audit Group provides reasonable assurance of the implementation of the Enterprise Risk Management (ERM) and assures that the three lines of defence are in complete alignment with the objectives and strategy of the bank, and that the group is in full synergy with the Compliance Department and Risk Management Department, without breaching its independence.

Internal Audit Staff are very well chosen with diversified experience covering all the banking functions. Some 45% of the staff is certified (CIA, CBA, CPA, CISA, and MBA). They are continuously provided with on-the-job training and attend overseas conferences like annual IIA conferences. Senior staff freely shares their expertise with junior staff, who also have consistent access to middle management that expose them to the latest trends and methodologies worldwide.

The Internal Audit Group works as a true business partner, which is reflected in the findings of an independent survey conducted by an outsourced Human Resources consultant company, indicating that 70% of the bank staff believe “Internal Audit helps improve the process and is a true business partner.”

The structure of the Internal Audit Group allows the Chief Audit Executive to maintain quality assurance and to develop intensive programs to cover all aspects of internal audit activity. These tasks are implemented by professional auditing teams that are assigned follow-up functions. The Chief Audit also set up a separate Quality Assurance Team reporting directly to him.