Somalia: Technical Assistance Report-Internal Audit and Accounting Training for the Central Bank of Somalia

IMF Staff Country Reports, October 31, 2018

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Canonical URL: Somalia: Technical Assistance Report-Internal Audit and Accounting Training for the Central Bank of Somalia

Purpose: Discusses the IMF mission recommendation to assist the authorities in Somalia in developing proper frameworks for internal auditing and accounting to bring them toward international accepted norms.
Core finding: The Internal Audit Department (IAD) needs an infrastructure to make internal audit practices sustainable, repeatable, and professional.
Key deliverable needs:
- A proper internal audit charter.
- An audit committee charter.
- An internal auditing manual.
Governance recommendation: Drafts of the above documents need to be approved by the management and Board of the Central Bank of Somalia (CBS).
Organizational recommendation: Management of the CBS should appoint a head for the IAD to lead establishment of the internal audit function and consider a flatter organizational structure to allow the IAD to mobilize resources more efficiently.

Institutional documents to prepare and approve:
- Internal audit charter.
- Audit committee charter.
- Internal auditing manual.
Leadership and structure:
- Appoint a head of the Internal Audit Department (IAD).
- Consider a flatter organizational chart for CBS to improve IAD resource mobilization and operational efficiency.
Objective of actions:
- Make internal audit practices sustainable, repeatable, and professional.
- Move accounting and internal audit frameworks toward internationally accepted norms.