Enterprice Risk Management and Internal Control

Transcript:Enterprice Risk Management and Internal Control:
Enterprice Risk Management and Internal Control Practices in Financial Audit ERM and IC Practices in Turkey and the TCA ANKARA, May 2021 1 Learning Objective To understand the framework of enterprice risk management and internal control practices in Turkey To understand briefly how enterprice risk management and Internal Control is applied in the Turkish Court of Accouts(TCA), and what duties the TCA has in this field in its audits. Content 3 Introduction 4 Introduction 5 Strategic Management Model in Turkish Public Administration 6 Enterprice Risk Management Internal Control Strategic Management Model in Turkish Public Administration 7 Strategic Management Model in Turkish Public Administration 8 Strategic Management Model in Turkish Public Administration 9 Strategic Management Model in Turkish Public Administration 10 Strategic Management Model in Turkish Public Administration 11 Enterprice Risk Management 12 Enterprice Risk Management 13 Enterprice Risk Management 14 Why integrate ERM and Strategic Planning in Turkey? Integrating ERM and strategic planning can make strategic plans stronger while helping public entities focus on their limited resources on the risks that matter most. With integration, public administrations can: Strike the right balance in dedicating attention/resources between alternative goals and objectives; Eliminate separate ERM and strategic planning processes involving the same stakeholders and similar topics; Design strategic goals, objectives, and performance measures that anticipate risks to their success; Create resilient strategies that plan for potential risk exposures and are more likely to succeed; Focus on not only goals and objectives which are more important and essential for success but also risks that matter the most; and Monitor external indicators that provide early warning and trigger control activities. Internal Control in Public Financial Management 15 The main objectives of public administrations are to fulfill the duties assigned to them by law, to ensure that; The activities they carry out for this purpose are carried out In accordance with law(Compliance Objectives), In an effective, economic, and efficient manner(Operations Objectives), And prepeare realiable, timeless and transparent financial or non-financial reports (Reporting Objectives) The best way for public administrations to fulfill these duties can be achieved by establishing and implementing an effective internal control system to identify possible risks to attain their objectives and to ensure that enough controls are taken against these risks. Internal Control in Public Financial Management 16 According to Law no.5018, internal control is the sum of the financial and other controls comprising organization, methodology, procedure, and internal audit established by