Internal Audit activities of the National Bank of Georgia Generally Conform to International Standards
24 June, 2016
According to an external assessment report, the activities of the Internal Audit Service of the National Bank of Georgia are in conformity with International Standards for the Professional Practice of Internal Auditing. Experts from De Nederlandsche Bank gave the highest level of assessment – "Generally Conforms" 1 – to the quality of Internal Audit Service activities.
In line with the Quality Assurance and Improvement Program, external assessments are required at least once every five years. A full external assessment was chosen to evaluate the quality of the Internal Audit Service of the NBG because such an approach provides the highest level of assurance. In consideration of the recommendations of the International Monetary Fund, the National Bank of Georgia invited experts from another central bank to conduct the external assessment.
Negotiations with De Nederlandsche Bank commenced in early 2015 and Terms of Reference regarding an external assessment of the NBG's internal audit were agreed. The goal of the external assessment was to identify the compliance of the quality of the NBG’s Internal Audit activities with the requirements of International Standards for the Professional Practice of Internal Auditing and Code of Ethics.
The assessment team was composed of well-known audit experts – Robert Cornelisse and Peter Willemsen – who have extensive experience in conducting external assessments of the internal audit functions of Central and Eastern European central banks. The assessment included a preliminary examination of stakeholders’ questionnaires, "off-site" analysis of appropriate documents as well as the on-site visit of experts in October 2015. During the on-site visit, several interviews and meetings were held with the internal auditors, members of the Audit Committee, managers of different structural units and top management. The assessment team conducted a detailed examination and analysis of Internal Audit working papers and procedures.
"According to the results of the assessment, significant progress has been achieved by the Internal Audit Service of the National Bank of Georgia. The experience gained during the full external assessment of Internal Audit activities will positively reflect the development of Internal Audit functions within the country and also increase its role in corporative governance processes" – commented Mamuka Djibouti, Chief Audit Executive of NBG.
__________________ 1 The IIA Quality Assessment Manual Scale includes the following levels of conformance: Does Not Conform, Partially Conforms, Generally Conforms.