Enhancing the Effectiveness of Supervision and Control in Mehr Finance and Credit Institution (MFCI) via Improving the Process of Examining and Internal-Auditing and Holding Internal Provincial Congresses

According to the last definition proposed by IIA (Institute of Internal Auditors): internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization s operations, improving the process of examining and internal-auditing is one of the significant factors of increasing and enhancing the effectiveness of supervision and control in institutes or agencies, particularly, in financial institutions . The improvement applies for the purpose of supervising (refining) and reinforcing the control environment, as two main principles for internal control and in order to meet its triple purposes including the efficiency and effectiveness of the operations, reliability of the reports, and the observance of laws and regulations. In this regard and in order to meet such issues, Mehr Financeand Credit Institution (MFCI) has considered trust-creation through applying corporative governance, as one of its strategic purposes in the process of codifying its vision document; and regarding this, it has provided the audit and supervision mission as the process of assessing effectiveness of internal-auditing and supervising its well-being-done and proposing refinement and modification solutions for creating continuous improvement; its strategic priorities are as follows: 1. Developing the culture of controllability, transparency, lawabidingness, and accountability 2. Concentrating on preventive controls 3. Improving managers‘ and employees‘ perspectives regardinginvestigating and auditing as their aid means 4. Developing IT in the process of supervision and control And in order to establish such strategic priorities, they should choose several approaches, e.g. improving the process of examining and internalauditing, holding draft-reading and review sessions and internal provincial congresses in the presence of the managing director and central headquarters deputies and presidents, director generals and provincial managers, and also, planning and performing auditing operations along financial auditing, observing provincial branches management regulations and performing electronic supervision as well as personal supervision; in this way, the effectiveness of supervision and control would get increased within the institution and following results and achievements would be obtained:1. Improvement and reinforcement of the institution‘s supervisory activities, such as covering and comprising examining and internal auditing plans from qualitative andquantitative aspects and role-creating in prevention and inhibition of deviation and violation 2. Refinement, modification and improvement in the institutionactivities and tasks, such as increasing troubleshooting processes and identified contradictions 3. Creating organizational added value, such as deferred debtsreception, and enjoying resulted liquidity in lending new facilities, and increasing the operational income as well as decreasing the bad debts reception costs.