Internal Audit

What is Internal Auditing?

Internal auditing, as defined by the Institute of Internal Auditors (IIA), is "an independent, objective assurance and consulting activity designed to add value and improve an organization's operations.  It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes."

The mission of the Internal Audit Function at WIPO

The mission of the internal audit function is to provide WIPO management with systematic assurance, analyses, appraisals, recommendations, advice and information with a view to assisting it, and other stakeholders, in the effective discharge of their responsibilities and the achievement of WIPO’s mission and goals.

The role of the internal audit function includes providing reasonable assurance on the effectiveness, efficiency and economy of the processes in various areas of operations within the Organization, as well as compliance with WIPO Financial and Staff Rules and Regulations, General Assembly Decisions, applicable accounting standards and existing best practice.

The Internal Audit Practice in WIPO

The Internal Audit and Oversight Division (IAOD) was established in May 2000. Its original mandate included both internal audit and evaluation functions. The Division also informally acted as a focal point for investigation and inspection. With the approval of the WIPO Internal Oversight Charter by the General Assembly in September 2005 (revised in September 2007 and September 2010 ), investigation and inspection were specifically incorporated into the IAOD mandate.

The WIPO Internal Audit Charter follows Standards for the Professional Practice of Internal Auditing issued by the Institute of Internal Auditors (IIA) in performing audit assignments. The IIA standards were adopted at the 33rd meeting of Representatives of the Internal Audit Services of the United Nations Organizations and multilateral financial institutions (RIAS). Internal Audit Staff abide by the Code of Ethics as established by the IIA, and generally accepted by the internal auditing profession.

The IAOD has developed an Internal Audit Strategy, to provide the Director General, Member States and other stakeholders with an independent and objective assessment of the Organization’s business processes and systems, risk management, control and governance processes. Audits are conducted in accordance with a detailed annual audit plan that is developed based on an annual risk-based assessment of internal audit needs for the whole of WIPO. Risk-based annual audit plans are subject to regular revision, at least annually, in order to be aligned with the strategic objectives of the Organization. Audit needs are estimated based on a thorough review of WIPO’s business and other systems and processes which make up the audit universe for the IAOD. The audit needs assessment is reviewed annually. at the same time as the detailed annual audit plan is set out.

For annual audit planning purposes, an Internal Audit Risk Assessment Methodology has been developed, taking into account the best practice advisory of the IIA. In line with the new set of strategic goals set for the Organization by the new Director General, the IOAD strategy and annual plans are re-aligned regularly to ensure:

• due emphasis is put on the “operational efficiency and effectiveness” aspect in the detailed work plans to the extent possible;
• main WIPO business processes are reviewed to identify strengths and good practices, as well as gaps and deficiencies.  Value adding recommendations are made to assist management in addressing these issues;
• audit support is provided to key management and governance initiatives (SRP, ERP, FRR, etc.), recognizing that the responsibility for such initiatives rests with the management;
• in the case of a strong indication of any fraudulent activity found during an audit sufficient audit work is performed to gather factual evidence and the supporting documentation is handed over to the Investigation Section for further examination if need be.

Compliance with Professional Standards and Code of Ethics

The internal audit staff are expected to follow the International Professional Practices Framework (IPPF) as set out in the "Standards for the Professional Practice of Internal Auditing," issued by the IIA.  In addition to the Standards of Conduct for International Civil Servants, the internal audit staff shall also abide by the Code of Ethics as established by the IIA, and the standards to be followed by the internal audit function in conducting audits as set out in the Audit Charter.

• The Internal Auditor enjoys operational independence in the conduct of his/her duties. He/she has the authority to initiate, carry out and report on any action, which he/she considers necessary to fulfill his/her mandate.
• The Internal Auditor shall be independent of the programs, operations and activities he/she audits to ensure the impartiality and credibility of the audit work undertaken.
• Internal audit work shall carried out in a professional, unbiased and impartial manner. The conclusions of the audits shall be shared with the managers concerned, who shall be given the opportunity to respond.
• Any situation of conflict of interest shall be avoided.
• The Internal Auditor shall have unrestricted, direct and prompt access to all WIPO records, officials or personnel holding any WIPO contractual status and to all the premises of the Organization.
• The Internal Auditor shall respect the confidential nature of information and shall use such information with discretion and only in so far as it is relevant to reach an audit opinion.

The External Auditors have completed a Quality Assessment Review in accordance with IIA procedures. This has been presented to the WIPO General Assembly in September 2010 .