Classification: UNCLASSIFIED
Caveats: NONE
All concerned,
The 14 June 2008 event is one good move of some right-thinking officials and Knights at IHQ!
However, that and other positive actions cannot hide nor deny the fact that the Supreme Commander, RY 2008-2010, chose to cover-up, if not attempted a cover-up by long fruitless (read, EMPTY!) "investigations" and months of delay concerning the Paras plagiarism and Alcoba racism cases! Latest news from the grapevine is that the Paras documents were reportedly "stolen"!
In the Alcoba case alone, the whole world read his unflattering remarks..., even implying that Sir Barry didn't really dine with the Queen since no one saw the latter at Buckingham!
The same Supreme Commander cemented his "sincerity" with his pronouncements of "open book" policy concerning IHQ records, documents, memoranda, etc. etc.
Lazir requested in October 2007 from Esguerra for Supreme Council minutes or memoranda exalting the three KGORs Alcoba, Nollas, Guansing. Now is 19 June 2008, more or less eight months later, the 147th birthday of the National hero, and still, no document came out from IHQ's "open book" policy!
It's not Lazir who failed to provide SOLID evidence on Supreme Commander's (Esguerra's) acts or attempts at deceit, manipulative actions or - Show quoted text - influence-peddling (corrupt practices), although Lazir is now the target of this Supreme Commander's witchhunt for ferreting out the truth!
Lazir is merely presenting facts and hard evidence!
To illustrate the contradiction/s under the Esguerra leadership:
1. The Supreme Commander may say he is going north from Manila, yet flies south to Cebu!
2. Or, he says he will exalt great Rizalists to KGORs, but picks Alcoba, Nollas and Guansing!
3. Or, Esguerra says he will rid KOR of corrupt practices, but keeps Paras and Alcoba till their terms expire, rather than rid KOR of them! (When you step on something stinky and do not remove it, the bad odor could stay with you!)
4. What about the "open book" policy, where Lazir asked for a simple document but never got it, eight (8) months later!
Happy 147th Birthday Dr Jose Rizal!, even with the proven incompetence of Esguerra's KOR leadership (soon 2x!)...!
May some elected REFORM-MINDED KOR Officials help open Esguerra's eyes to see the Light...!
For country and people!
:)
Lazir
===============================
===============================
Good corporate governance has a four-way test (per Renato C. Valencia):
1. Is the (KOR) fair to its (members)? NO!
2. Is it accountable for all its actions? NO!
3. Is it transparent? NO!
4. Does it follow a code of ethics and comply with rules and regulations? NO!
The only yes answer could be this question:
Is it under Virgilio Esguerra? YES!
Ergo, not Lazir nor Sir Manny Bade, but IHQ/Esguerra's "leadership" is WRONG!
:)
Lazir
==================
==================
Expectations from the internal auditor
By Renato C. Valencia
Philippine Daily Inquirer
First Posted 23:35:00 06/15/2008
IN RECENT years, due to such developments as huge corporate failures, massive frauds, risk management, corporate governance, anti-money laundering laws, etc., the internal auditor's role has expanded dramatically, thus raising expectations from corporate boards and management.
Throughout my career as a management practitioner, I have had to work closely with the internal auditor, having had the privilege of serving as a member, and at times, the chair of the board audit committee-first as a professional manager, then as CEO, and recently as an independent director.
Allow me to expound on board and management expectations from the internal auditor.
Premises
Let me lay down the premises for my observations.
In an enterprise, the board governs, management manages, the enterprise pursues its vision, mission and goals, and the internal auditor oversees total business quality assurance in support of the company's vision, mission and goals.
To be effective, the internal auditor must have managerial, leadership and professional competence. He or she must be able to plan, lead, organize, control and communicate. Moreover, he or she must have a good understanding of the business, and possess the necessary expertise in the business, or be able to tap it. Furthermore, he or she must have the trust and confidence of the board, management and the enterprise. Finally, external and internal audit plans and cycles must be in place.
Expectations
In summary, an internal auditor must be able to provide, directly or through a third party, an independent seal of good housekeeping on the following aspects of the enterprise:
1. Integrity of the business
2. Integrity of financial disclosures
3. Risk management
4. Good corporate governance
Integrity of the business
Is the company's business model sound? Will the company be able to survive, compete or even flourish in the market? Does it adhere to sound business practices? Does it have risk management and corporate governance programs in place?
This test is especially true for start-up or losing companies, but is no less applicable to companies with long and excellent track record.
One can only remember the "dot-com" or IT bubble burst in 2001, when thousands of IT companies went belly up due to high burn rate and unsound business model. Losing companies are generally subsidized by governments or large companies unwilling to face the unpleasant task of closing them down.
Companies with sterling records, on the other hand, invariably face the challenge of rejecting unsound business practices.
How does one test the integrity of a business? A baseline audit, generally undertaken when new management takes over, is an example; an ISO certification to achieve certain standards, another.
The board and management are responsible for ensuring the integrity of the business, while the internal auditor is responsible for validating, directly or indirectly, if indeed, the company's business model is sound.
Integrity of financial disclosure
The 1998 Millstein Report concludes, "The board bears the ultimate responsibility for the integrity of the corporation's financial disclosure. This is a cornerstone of corporate governance and the main instrument of accountability of boards to shareholders."
Do the company's financial statements represent, fairly and in all material aspects, the financial position of the company? Are they in accordance with financial reporting standards? Are there proper disclosures? Are sufficient controls in place?
The litmus test for financial disclosures is this: do the shareholders or potential investors or lenders have sufficient information to make informed decisions regarding management performance, proper employment of the company's resources, market valuation, as well as voting of shares?
Management is responsible for the preparation and fair presentation of the financial statements while the internal auditor and the external auditor must ensure that the financial statements do pass the litmus test.
Risk management
Risk is an integral part of any endeavor. Without proper risk management, no enterprise can expect to survive, much less compete in any market.
A company must have a risk management program in place, with a unit responsible for implementing and monitoring it.
The recent sub-prime debacle demonstrates how market and credit risks can wreak havoc on financial institutions, financial markets and even the economy. The sub-prime defaults of over $325 billion, the fall of Bear Stearns, 65,00 jobs lost, and the downward pressure on the US and
world economies, among others, are the aftermath of the crisis.
Managing operations risks is generally tedious, but one must not forget operational lapses that brought about the biggest rouge trading in history such as, the 3.7-billion pound fraud in Societe Generale, the 827 million pounds in trading losses that brought the venerable Barings Bank down and the $2.6 billion in copper trading losses of Sumitomo.
The case of Arthur Andersen reminds us of reputation and compliance risks. Convicted of obstructing justice related to its audit of its client, Enron, it had to surrender its CPA licenses and right to practice to the US SEC. While its conviction was subsequently overturned by the US Supreme Court due to procedural flaws, it has yet to return as a viable business.
Perhaps the best example of strategic risks is the iPod phenomenon. A few years after its introduction, over 150 million units have been sold leaving Sony Walkman and others in its wake.
The risk management unit and the risk management committee are responsible for risk management, but it is the internal auditor's task to ensure the risk management program works.
Governance
Good corporate governance or stewardship is the foundation of any enterprise; without it, an enterprise cannot endure.
Good corporate governance has a four-way test: Is the company fair to its constituents? Is it accountable for all its actions? Is it transparent? Does it follow a code of ethics and comply with rules and regulations?
There are many cases where failure in governance has caused the downfall of the company.
Perhaps the most striking example is Enron, formerly one of Fortune's top 100 corporations and the darling of the stock market, with a peak market value of over $60 billion. A series of revelations involving irregular accounting procedures bordering on fraud led to its stock market freefall, and eventually, its bankruptcy.
Conclusion
Perhaps I raised more questions than provided answers. But that is probably the internal auditor's role: to ask the right questions and hopefully find the right answers.
With the broadening and deepening of the internal auditor's role from a pure watchdog to an enterprise enabler and overseer of total business quality assurance come higher expectations from the board and management, as well as from other stakeholders.
The internal auditor has no choice but to answer this challenge.
Classification: UNCLASSIFIED
Caveats: NONE
Caveats: NONE
All concerned,
The 14 June 2008 event is one good move of some right-thinking officials and Knights at IHQ!
However, that and other positive actions cannot hide nor deny the fact that the Supreme Commander, RY 2008-2010, chose to cover-up, if not attempted a cover-up by long fruitless (read, EMPTY!) "investigations" and months of delay concerning the Paras plagiarism and Alcoba racism cases! Latest news from the grapevine is that the Paras documents were reportedly "stolen"!
In the Alcoba case alone, the whole world read his unflattering remarks..., even implying that Sir Barry didn't really dine with the Queen since no one saw the latter at Buckingham!
The same Supreme Commander cemented his "sincerity" with his pronouncements of "open book" policy concerning IHQ records, documents, memoranda, etc. etc.
Lazir requested in October 2007 from Esguerra for Supreme Council minutes or memoranda exalting the three KGORs Alcoba, Nollas, Guansing. Now is 19 June 2008, more or less eight months later, the 147th birthday of the National hero, and still, no document came out from IHQ's "open book" policy!
It's not Lazir who failed to provide SOLID evidence on Supreme Commander's (Esguerra's) acts or attempts at deceit, manipulative actions or - Show quoted text - influence-peddling (corrupt practices), although Lazir is now the target of this Supreme Commander's witchhunt for ferreting out the truth!
Lazir is merely presenting facts and hard evidence!
To illustrate the contradiction/s under the Esguerra leadership:
1. The Supreme Commander may say he is going north from Manila, yet flies south to Cebu!
2. Or, he says he will exalt great Rizalists to KGORs, but picks Alcoba, Nollas and Guansing!
3. Or, Esguerra says he will rid KOR of corrupt practices, but keeps Paras and Alcoba till their terms expire, rather than rid KOR of them! (When you step on something stinky and do not remove it, the bad odor could stay with you!)
4. What about the "open book" policy, where Lazir asked for a simple document but never got it, eight (8) months later!
Happy 147th Birthday Dr Jose Rizal!, even with the proven incompetence of Esguerra's KOR leadership (soon 2x!)...!
May some elected REFORM-MINDED KOR Officials help open Esguerra's eyes to see the Light...!
For country and people!
:)
Lazir
===============================
===============================
Good corporate governance has a four-way test (per Renato C. Valencia):
1. Is the (KOR) fair to its (members)? NO!
2. Is it accountable for all its actions? NO!
3. Is it transparent? NO!
4. Does it follow a code of ethics and comply with rules and regulations? NO!
The only yes answer could be this question:
Is it under Virgilio Esguerra? YES!
Ergo, not Lazir nor Sir Manny Bade, but IHQ/Esguerra's "leadership" is WRONG!
:)
Lazir
==================
==================
Expectations from the internal auditor
By Renato C. Valencia
Philippine Daily Inquirer
First Posted 23:35:00 06/15/2008
IN RECENT years, due to such developments as huge corporate failures, massive frauds, risk management, corporate governance, anti-money laundering laws, etc., the internal auditor's role has expanded dramatically, thus raising expectations from corporate boards and management.
Throughout my career as a management practitioner, I have had to work closely with the internal auditor, having had the privilege of serving as a member, and at times, the chair of the board audit committee-first as a professional manager, then as CEO, and recently as an independent director.
Allow me to expound on board and management expectations from the internal auditor.
Premises
Let me lay down the premises for my observations.
In an enterprise, the board governs, management manages, the enterprise pursues its vision, mission and goals, and the internal auditor oversees total business quality assurance in support of the company's vision, mission and goals.
To be effective, the internal auditor must have managerial, leadership and professional competence. He or she must be able to plan, lead, organize, control and communicate. Moreover, he or she must have a good understanding of the business, and possess the necessary expertise in the business, or be able to tap it. Furthermore, he or she must have the trust and confidence of the board, management and the enterprise. Finally, external and internal audit plans and cycles must be in place.
Expectations
In summary, an internal auditor must be able to provide, directly or through a third party, an independent seal of good housekeeping on the following aspects of the enterprise:
1. Integrity of the business
2. Integrity of financial disclosures
3. Risk management
4. Good corporate governance
Integrity of the business
Is the company's business model sound? Will the company be able to survive, compete or even flourish in the market? Does it adhere to sound business practices? Does it have risk management and corporate governance programs in place?
This test is especially true for start-up or losing companies, but is no less applicable to companies with long and excellent track record.
One can only remember the "dot-com" or IT bubble burst in 2001, when thousands of IT companies went belly up due to high burn rate and unsound business model. Losing companies are generally subsidized by governments or large companies unwilling to face the unpleasant task of closing them down.
Companies with sterling records, on the other hand, invariably face the challenge of rejecting unsound business practices.
How does one test the integrity of a business? A baseline audit, generally undertaken when new management takes over, is an example; an ISO certification to achieve certain standards, another.
The board and management are responsible for ensuring the integrity of the business, while the internal auditor is responsible for validating, directly or indirectly, if indeed, the company's business model is sound.
Integrity of financial disclosure
The 1998 Millstein Report concludes, "The board bears the ultimate responsibility for the integrity of the corporation's financial disclosure. This is a cornerstone of corporate governance and the main instrument of accountability of boards to shareholders."
Do the company's financial statements represent, fairly and in all material aspects, the financial position of the company? Are they in accordance with financial reporting standards? Are there proper disclosures? Are sufficient controls in place?
The litmus test for financial disclosures is this: do the shareholders or potential investors or lenders have sufficient information to make informed decisions regarding management performance, proper employment of the company's resources, market valuation, as well as voting of shares?
Management is responsible for the preparation and fair presentation of the financial statements while the internal auditor and the external auditor must ensure that the financial statements do pass the litmus test.
Risk management
Risk is an integral part of any endeavor. Without proper risk management, no enterprise can expect to survive, much less compete in any market.
A company must have a risk management program in place, with a unit responsible for implementing and monitoring it.
The recent sub-prime debacle demonstrates how market and credit risks can wreak havoc on financial institutions, financial markets and even the economy. The sub-prime defaults of over $325 billion, the fall of Bear Stearns, 65,00 jobs lost, and the downward pressure on the US and
world economies, among others, are the aftermath of the crisis.
Managing operations risks is generally tedious, but one must not forget operational lapses that brought about the biggest rouge trading in history such as, the 3.7-billion pound fraud in Societe Generale, the 827 million pounds in trading losses that brought the venerable Barings Bank down and the $2.6 billion in copper trading losses of Sumitomo.
The case of Arthur Andersen reminds us of reputation and compliance risks. Convicted of obstructing justice related to its audit of its client, Enron, it had to surrender its CPA licenses and right to practice to the US SEC. While its conviction was subsequently overturned by the US Supreme Court due to procedural flaws, it has yet to return as a viable business.
Perhaps the best example of strategic risks is the iPod phenomenon. A few years after its introduction, over 150 million units have been sold leaving Sony Walkman and others in its wake.
The risk management unit and the risk management committee are responsible for risk management, but it is the internal auditor's task to ensure the risk management program works.
Governance
Good corporate governance or stewardship is the foundation of any enterprise; without it, an enterprise cannot endure.
Good corporate governance has a four-way test: Is the company fair to its constituents? Is it accountable for all its actions? Is it transparent? Does it follow a code of ethics and comply with rules and regulations?
There are many cases where failure in governance has caused the downfall of the company.
Perhaps the most striking example is Enron, formerly one of Fortune's top 100 corporations and the darling of the stock market, with a peak market value of over $60 billion. A series of revelations involving irregular accounting procedures bordering on fraud led to its stock market freefall, and eventually, its bankruptcy.
Conclusion
Perhaps I raised more questions than provided answers. But that is probably the internal auditor's role: to ask the right questions and hopefully find the right answers.
With the broadening and deepening of the internal auditor's role from a pure watchdog to an enterprise enabler and overseer of total business quality assurance come higher expectations from the board and management, as well as from other stakeholders.
The internal auditor has no choice but to answer this challenge.
Classification: UNCLASSIFIED
Caveats: NONE
