Audit Approach

The Assurance Audit Unit uses Risk Based Auditing as the basic approach to all the work which it performs. This methodology is required by the Institute of Internal Auditors Professional Practice Framework which contains the Internal Audit Standards, according to which the Unit performs its work.

A risk assessment of all ILO Sections, Departments and Field offices is conducted by IAO at the beginning of each biennium and includes wide consultations with Senior Management, Management and staff. Based on the results of the assessment, areas of significant financial and operational risk exposure, issues of control and governance are included in the audit plan for auditing during the biennium.

The Risk Based Approach followed by IAO is informed by the framework of the Committee of Sponsoring Organizations of the Threadway Commission (COSO), which is internationally acknowledged as best practice, and widely used in all sectors.

An audit report is prepared for each audit performed, and discussed with management prior to being issued. IAO perform periodic follow-up of the status of implementation of internal audit recommendations.

Report to the Governing Body

An Annual Report is presented to the March Governing Body, covering activities, audit findings and recommendations reported in the preceding year, and noting recommendations which are outstanding, or which have not been adequately addressed by management.

Relationship with External Auditors

IAO liaises with the External Auditors to ensure that the duplication of audit effort is avoided as far as possible.

Audit Tools

IAO uses audit software for the performance of internal audits and data analysis SPA these programs assist us in bringing STSa systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes CCH.

External Quality Review

In October 2007 the first independent review of IAO took place, and IAO was found to be complying with the Internal Audit Standards, and hence all audit reports contain the words STS conducted in terms of the Standards of the Institute of Internal Audit (IIA) CCH.