Distinguished guests,
Dear friends,

It is with pleasure that I have accepted the invitation of the Cyprus Institute of Internal Auditors to address on behalf of the Minister of Finance Mr Harris Georgiades, the Cyprus Internal Audit Forum 2018. The Institute is organizing this Forum for a third consecutive year in May, which is the International Internal Audit Awareness Month.

The participation in this conference of so distinguished speakers indicates clearly the dedication of audit professionals from around the world in the promotion and development of auditing as a necessary and productive function in today’s business environment.

The main economic policy objective of the Cyprus government is the full recovery of our economy and the creation of conditions for sustainable growth, in the medium and long term, for the benefit of all citizens, under conditions of full employment. Today, the Cyprus economy is recovering with remarkable growth rates. The growth is strong and sustainable, as a result of the excellent performance in key productive sectors of the economy, i.e. tourism, shipping, financial services, energy. The reform momentum is permanent and the reform effort does not have an expiry date.

The government is also determined to proceed with the needed reforms in public financial governance, making the public sector more efficient and productive. I believe that investing in technology is the most effective form of reform and improvement of productivity in the public sector. In this context, I would like to make particular reference to the enterprise resource planning system of the government, led by the Treasury, which is in the pipeline. In addition, the transition to accrual accounting would complement the investment in technology, striving to achieve better accountability and transparency.

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The Government, by the recent Decision of the Council of Ministers for the adoption of the Three Lines of Defense Model, is aiming to reinforce the role and the functions of the internal control and audit mechanisms in the public sector, leading to a sound Public Governance structure.

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A good work is already being performed across the board by the Internal Audit Service which is being reported to the Internal Audit Board, headed by the Minister of Finance and with two Ministers, the Accountant General and a representative from the audit profession, as its Members. The effective operation of the internal audit units at the ministerial level, exercising their role at the second and third lines of defense, could serve better towards an integrated internal audit model in the Cyprus government.

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However, I would like to emphasize the great importance for sound cooperation between both the Internal Audit Service and the internal audit units with the top and middle management, as the first line of defense, as well as with the Treasury of the Republic, exercising a key role at the second line. Last but not least, I would like to stress the significance for cooperation between all the players in the Three Lines of Defense Model with the “fourth” line, the National Audit Office. To this end, all lines of defense would become more effective in fostering public accountability and sound financial governance in the public sector.

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Nevertheless, I believe that, concerning the internal audit units at the Ministry level, in order to bring the expected results there is room for improvement in the skills and professional development of their staff. I am convinced that in this effort, the government will have the full support of the Cyprus Institute of Internal Auditors.

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In my address in last year’s Cyprus Internal Audit Forum, I made reference to the need for cultivating the right culture in all sectors and levels of our society in order to achieve the elimination, if possible, of incidents of corruption and fraud. The title of today΄s conference is “Audit Challenges and Dilemmas”. Relating this to culture, I would extend this by adding that, as a society seeking prosperity for all, all of us, government, businesses, professionals and working people, must face all the challenges with determination and faith in our strength. We must also resolve any of our dilemmas working together in harmony and cooperation. The Internal Auditor, in his/her capacity as an independent, objective and trusted advisor to the administration, is in the best position to assess and evaluate the effectiveness of the prevailing culture.

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This year, the Cyprus Institute of Internal Auditors celebrates its 20^th Anniversary. Over these years the Institute has grown in membership. It has gained the respect and appreciation of internal audit professionals, and the society as a whole. It has promoted internal audit as a function of an organization that adds value. It has provided the necessary educational and training opportunities to its members to acquire the globally recognized professional title of Certified Internal Auditor. It has also represented our country in European and global conferences and meetings.

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I would like to thank the President Mrs. Soteroula Savvidou and the members of the Management Board of the Cyprus Institute of Internal Auditors for their invitation to attend and address the Cyprus Internal Audit Forum 2018, and congratulate them for placing our country on the map of international conferences on internal audit by organizing this event.

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I wish all the best to all of you and every success in today’s conference.