Internal Audit (IA)
An IA function is established as a fundamental part of Globe's CG practices. An Internal Audit Charter, adopted by the Audit and RPT Committee, establishes the purpose, authority, responsibility, organizational structure, and reporting relationships of the internal audit function.
Internal Audit is a service, providing an independent, objective assurance and consulting function within Globe, and sharing our common goal of adding value for our stakeholders through a systematic approach in evaluating the effectiveness of governance, risk management, control processes after consideration of objectives, strategies and risks. The IA provides reasonable assurance to the Board, management, and the stockholders on the integrity of the financial statements and financial reporting processes and principles against material misstatements; effectiveness and appropriateness of internal controls on the safeguarding of assets, operations, and information systems; and compliance with laws, rules and regulations.
Internal Audit also assists and supports management in continuously instilling and nurturing Control Self-Assessment (CSA) environment at Globe through the facilitation of self-assessment activities among various business groups. The Audit and RPT Committee regards its relationship with IA as having a vital role in supporting the effective discharge of its oversight role and responsibilities.
Internal Audit performs its auditing functions faithfully by maintaining independence from the management and controlling shareholders as it reports functionally to the Board, through the Audit and RPT Committee, and administratively, to the President and CEO. The committee, having appointed the CAE, also concurs in his/her replacement, reassignment, or dismissal.
The CAE works closely with the Audit and RPT Committee in maintaining an effective internal audit function by managing the entire operations, and strongly supports the attainment of corporate objectives through coverage of most critical processes in the conduct of risk-based assurance reviews. The CAE ensures risks/issues are timely called-out, escalated, and monitored while 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) and global best practices. Additional responsibilities include, among others, strengthening leadership and talent bench, uplifting performance management and managing internal costs.
Globe IA maintains, reviews, and assesses the adequacy of its Charter annually to ensure conformance with the Standards and appropriateness for enabling good CG. The result of the periodic assessment and any arising revisions are communicated and approved by the Audit and RPT Committee.
Globe IA governs its internal audit activities in conformance with the Institute of Internal Auditor's Code of Ethics, and our Code of Conduct. The CAE is responsible for overall conformance with the Standards. 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 Audit and RPT Committee also receives periodic reports on the status of internal audit activities, achievement of key performance indicators, and QAIP. To ensure consistent conformance with the Standards, Globe IA periodically undergoes an independent external Quality Assurance Review (QAR). In the most recent external QAR in 2013, Globe IA achieved the highest rating, “Generally Conforms” that can be achieved in the QAR process.
Globe IA adopts a risk-based audit approach in developing its annual work plan ensuring that all risks, mapped to an eTOM (enhanced telecommunications operations map) based processes, with integrated risk assessments for processes across the enterprise, are captured in the audit universe. The IA's annual work plan is reassessed quarterly to consider emerging risks and the changing dynamics of the telecommunications business, thereby allowing maximum and timely coverage of key/ critical risk areas. The Audit and RPT Committee reviews and approves the annual work plan and all deviations; and also ensures that audit resources are adequately allocated to and focused on the areas of highest risk.
To instill 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 our business processes, network and IT systems, internal controls, new accounting and auditing standards, and regulatory updates. The audit team is composed of professionally certified accountants, internal auditors, IT and information security auditors, control self-assessors, and licensed engineers, among others. In addition, Globe IA has been actively participating in the Ayala Group and Singtel Internal Audit Networks to benchmark and share knowledge on leading global best practices including information on methodology, process improvement and audit tools to develop a network of world class, multi-skilled, internal audit professionals.