Weekly Wrap – 9th October 2013

VIDEO HIGHLIGHTS

0.47 – Index available on Transparency International website

1.12 – How would you use Index?

VIDEO TRANSCRIPT

Hi I am Tom McLeod – Managing Consultant of McLeod Governance.

This is what I would be thinking about this week.

Since 1995 Transparency International have released the Corruption Perception Index which – as the name suggests – is an index or analysis of perceptions of corruption in sovereign states.

About 180 countries are surveyed or analysed within this Index.

And if you have not already or previously come across the Index I would strongly encourage you to seek it out on the Transparency International website.

The purpose of today’s Weekly Wrap is to how you can be use that corruption index.

If you are an organisation that crosses jurisdictions then the Corruption Index will allow you to use a dispassionate and structured approach to identifying sovereign corruption risk.

Now how would you use it and where would you present it to?

Firstly how would you use it.

In the first instance just take your audit plan and take your audit plan coverage by country and measure it against the countries in the Corruption Index.

How many countries are you auditing in the first quartile – i.e. the least corrupt areas of the world?

And how many areas are you auditing in the last quartile – i.e. the most corrupt parts of the world?

And it is that information that is relevant to how you present it.

Imagine presenting to your Audit Committee and saying that our audit plan is solely in non corrupt countries but that the majority of our operations are in corrupt countries as dictated by the Transparency International Corruption Perception Index.

You can imagine the discussion you are going to get back from any Audit Committee or senior management.

So it is a very good sense check around where you should be putting your efforts and whether those efforts should be in corrupt countries or not.

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