The establishment of an IA function is a fundamental part of Globe’s corporate governance practices and policies. An IA Charter, approved by the ARC/Board, establishes the mission, scope of work, authority, independence, compliance to professional standards, reporting relationships, and key responsibilities of the internal audit function.
IA is a service, providing an independent and objective assurance and consulting function within Globe that shares our common goal of creating and enhancing shareholder value and improving the Globe Group’s operations. This is done through a systematic, disciplined, and risk-based approach in evaluating and improving the effectiveness of risk management, control, and governance processes. Globe IA provides reasonable assurance to the Board, management and stockholders, on the adequacy and effectiveness of controls encompassing the organization’s governance, operations, information systems, to include reliability and integrity of financial and operational information, effectiveness and efficiency of operations, safeguarding of assets, and compliance with laws, rules, regulations, and contracts.
To perform its auditing functions effectively, Globe IA maintains its independence from management and controlling shareholders by reporting functionally to the Board, through the ARC and administratively, to the President and CEO. The ARC, having appointed the CAE, also concurs in his/her replacement, reassignment, or dismissal.
Working closely with the ARC, the CAE maintains an effective internal audit function by managing the entire operations, and strongly supports the attainment of corporate objectives through coverage of the most critical processes in the conduct of risk-based assurance reviews. The CAE reports the results of audit reviews and other activities in a manner that helps management take appropriate action on identified risks/issues within a reasonable period of time. Management remains primarily responsible for resolving the risks/ issues. The CAE continuously improves the internal audit operating process and standards and ensures strict compliance with International Standards for the Professional Practice of Internal Auditing (the Standards) of the Institute of Internal Auditors (IIA) and ensures alignment to global best practices. Among other responsibilities, the CAE strengthens leadership and talent bench, uplifts performance management and manages internal costs.
Globe IA maintains, reviews, and assesses the adequacy of its Charter annually to ensure conformance with the Standards and SEC regulations. The result of the periodic assessment and any arising revisions are reviewed and approved by the ARC, with concurrence by the Board. The latest Charter review and assessment was done on November 8, 2021 and the ARC approved the retention of the existing Charter (approved by the Board on November 11, 2021).
Globe IA governs its internal audit activities in conformance with the IIA’s Code of Ethics, and Globe’s Code of Conduct. The CAE is responsible for overall conformance with the Standards. To assess whether the purpose, authority and responsibility of internal audit, as defined in the IA Charter, continue to be adequate and effective in enabling the internal audit function, the CAE develops, maintains, and communicates an appropriate and effective quality assurance and improvement program (QAIP) that covers all aspects of internal audit reviews and activities. The ARC also receives periodic reports on the status of internal audit activities, achievement of key performance indicators, and QAIP. Globe IA periodically undergoes an independent external Quality Assurance Review (QAR) to ensure consistent conformance with the Standards. The last external QAR was done in 2018, where Globe IA obtained “Generally Conforms”, the highest rating that can be given in an external QAR process. The Standards require an external assessment at least once every five (5) years.
Globe IA adopts a risk-based audit approach in developing its annual work plan ensuring that risks, mapped to eTOM (enhanced telecommunications operations map) based processes, with integrated risk assessments for processes across the enterprise, are captured in the audit universe. Globe IA’s annual work plan is reassessed periodically and adjusted accordingly based on the Globe Group’s risk profile and audit universe, including new or emerging risks, business trends, changes and initiatives, thereby allowing maximum and timely coverage of key/critical risk areas. The ARC reviews and approves the annual work plan and all deviations. The ARC also ensures that audit resources are allocated adequately and focused on the areas of highest risks.
To promote excellence, Globe IA provides for continuing professional and personal development for all internal auditors to equip them in the conduct of reviews, with focus on acquiring expertise on Globe’s business processes, network and IT systems, internal controls, new accounting and auditing standards, data analytics and regulatory updates. The audit team is composed of professionally certified accountants, internal auditors, IT and information security auditors, licensed engineers, data experts, and controls self-assessor, among others. In addition, Globe IA has been actively participating in Ayala Group and Singtel Internal Audit Networks and learning from international knowledge and thought experts to benchmark and adopt leading-edge global best practices on methodology, process improvement and audit tools for digitalization to develop a team of world class, multiskilled, internal audit professionals.
To keep up with the dynamic risk environment and rapidly changing regulatory and industry requirements, Globe IA has also adopted technology-driven audit processes such as Continuous Auditing, Robotics Process Automation and Simple, Digital, and Agile auditing, among others, to improve overall audit efficiency and enhance organizational value.
Globe IA also continuously facilitates self-assessment activities among various business groups to aid management and to foster increasing controls awareness and maturity at Globe.
The ARC regards IA as a vital support in the effective discharge of the Committee’s oversight role and responsibilities.
Amidst the COVID-19 situation, IA continues to maximize the use of relevant technology to fully deliver its work plan and carry out its mandate through work-from-home arrangements, identification and assessment of the Globe Group’s emerging risks, high-level analysis of business impact and corresponding management initiatives and responses to provide reasonable assurance to the Board, stockholders, and other stakeholders that such risks are effectively addressed by Management.