Woman with a head for figures
- By http://www.bbqonline.co.za/articles/other/480-woman-with-a-head-for-figures
Dr Claudelle von Eck is blazing a hot trail in a hitherto male domain
She believes in finding a purpose to one’s life, and building a career around that purpose, says Dr Claudelle von Eck, chief executive officer of the Institute of Internal Auditors of South Africa (IIA SA).
She further believes the internal auditing profession has a significant role to play in the overall well-being of the country, and embraces the opportunity – both on a personal and professional level – to contribute to the empowerment of South Africa by raising the professional standards of the internal auditing community.
Von Eck feels that her role provides an opportunity to give back to the country, by ensuring internal auditors add value to the organisations they serve.
She points out it is not possible to separate the IIA SA from the profession itself, as the organisation exists to serve the profession. As such, there are two pressing issues that IIA SA is focused on addressing in its new strategy.
The first is the lack of understanding around the role of the internal audit profession, which causes negative spin-offs for the profession. Often, organisations establish internal audit functions from a compliance perspective, without a true understanding of the value internal audit can add. As a result, internal auditors often find there is resistance to their presence, as they are viewed as a necessary evil. This makes it difficult for the internal auditor to perform at optimal level and provide the audit committee with meaningful assurance.
Secondly, there are scores of cases where internal audit is pitched at the incorrect level of seniority and, sometimes, placed within the wrong reporting lines. The head of internal audit should be pitched at executive level, reporting to the CEO administratively, and functionally to the audit committee. It is imperative that the organisation understands the role of internal audit as a key assurance provider to the board of directors, through the audit committee.
“If the audit committee itself does not understand the role of internal audit, how can the committee drive the process and how can internal audit successfully deliver the value it should?” she asks.
In recent years, the expectations placed on internal auditors have increased dramatically. This is mainly as a result of the increased complexity and volatility, which results in increased risks with which organisations are now continually faced. In addition, the revised Code of and Report on Governance Principles for South Africa (King III) has now placed a greater emphasis on the importance of internal audit. The result has been a greater emphasis on the requirement for internal auditors to be competent and on top of their game.
A key strategic driver for the IIA SA is thus the competence of internal auditors and determining a definite career path for the profession. As part of its new strategy, there is therefore a renewed focus on the ‘professionalisation’ of internal audit.
The Institute has taken a strong position on the definition of the term “professional”.
In order to be considered a professional internal auditor, four elements must be in place. Firstly, a relevant academic qualification is required. Secondly, the required on-the-job training programme must have been completed (essentially, this equates to three years: two to qualify as an internal audit technician and one to qualify as a general Internal auditor), after which one can sit the exam for the most senior level – the certified internal auditor i.e. the test of competence, which is the third element.
Lastly, a professional must be must be linked to a professional body.
There are two main reasons membership of a professional body is important. This is to ensure the professional is linked to the standards that govern the profession. The Institute of Internal Auditors, of which the IIA SA is an affiliate, is the creator and custodian of the global internal audit standards.
In addition, it is imperative that the professional be held accountable against a code of ethics. The IIA SA has an active disciplinary committee that takes action against those who bring the profession into disrepute. It is important for employers to have the assurance that their internal audit professionals are accountable to the Institute.
It is vital that employers take such factors into consideration when employing an internal auditor.
“Too often, we see that employers look for the wrong credentials when employing internal auditors and especially heads of internal audit. This is often due to the fact that the market, in addition to not understanding the role of internal audit, also does not understand the difference between external and internal audit,” says Von Eck.
External audit is primarily a financial discipline, whereas the multidimensional nature of internal audit mandates a much broader scope in the organisation.
Where there is a lack of understanding is when there is a tendency to employ people into internal audit roles, who purely have a financial background and focus. Without the necessary training and understanding of the role of internal audit, they may end up focusing on the organisation only from a financial point of view and neglect other important factors such as supply chain management and auditing the culture of the organisation.
The internal auditor not only focuses on the financial aspects, but essentially on every element of the organisation – in terms of its risks, the controls that have been put in place to mitigate those risks, as well as whether those controls are adequate and adhered to within the organisation.
The internal auditor plays the role of an independent adviser who can challenge current practice, champion best practice and be a catalyst for improvement, with the objective of ensuring the organisation as a whole can achieve its strategic objectives.
“Given the great demands on internal auditors and the significant role they play, it is important that they are adequately qualified to add value at the right level,” says Von Eck.
To this end, she and her team have instituted measures to address the issue regarding qualifications required to fulfil the role of internal auditor.
“As a relatively young organisation, we have a way to go, in terms of promoting the profession, building our brand and educating the broader society on what it takes to be an internal auditor. Ideally, this will be targeted broadly, starting at school level – allowing learners to choose internal audit as a career, instead of falling into it by default as is so often the case,” says Von Eck.
The Institute has set continuing professional development criteria for those who have qualified through its certification programmes. “To this end, IIA SA offers courses and conferences to its members, allowing them to continue their professional development,” says Von Eck. “From 2012, we will be offering seminars and webinars, which will allow us to also reach our members in remote areas.”
As CEO of the IIA SA, it is her mandate to provide direction to the IIA SA, ensuring the structure and operational elements align to the strategy and that the infrastructure supports and enables the delivery of service.
Von Eck takes a collaborative approach to leadership, leading by example and giving strategic direction.
One of the challenges she faces is the fact that the organisation has limited resources.
“Our strategic plan is very optimistic, and requires us all to continually innovate and stretch ourselves. This becomes tricky when you only have so much to work with,” Von Eck admits.
“As an NGO [non-governmental organisation], we cannot compete with the private sector in terms of attracting skilled staff. We need to find people who want to make a difference in their country. In our current climate, those people are really hard to find.”
Leisure
In her spare time, Von Eck enjoys Latin American and ballroom dancing. “I have been dancing for the past 12 years. This is my time to find equilibrium and forget about everything and all stressors,” she says.
“I have learnt so much from dancing: it teaches you about partnerships, listening and intuition. Much like dancing is about interpreting and moving to the music, so a team within an organisation should determine its rhythm together.
“My collaborative leadership style has, to a great extent, been shaped by what I have learnt through dancing,” she reveals.
“We have fantastic internal audit functions and many pockets of excellence within the South African internal auditing community, which can be compared to the best in the world. The Institute hopes to make these positive aspects uniform throughout the public and private sectors, ensuring internal audit adds the value it should and that our members are consultants in best practice.”
Von Eck holds a BA degree from the University of the Witwatersrand, a three-year Business Management diploma from the Institute of Administration and Commerce, an MBL degree from the Unisa School of Business Leadership, as well as a DPhil obtained through the University
of Johannesburg.
She currently serves on the Unisa Council and has served on the Unisa School of Business Leadership board and audit committee.
Furthermore, Von Eck represents the IIA SA on global committees of the internal audit profession, thus providing South Africa’s input