Internal audit is a dynamic, independent and objective profession involved in helping organisations achieve their objectives. This is done by evaluating and improving the effectiveness of risk management, control and governance processes in an organisation.
Independence can be generally defined as freedom from dependence on, or influence or control by, another person, organisation, or state. Internal auditors work for, and primarily report to, the audited entity. For internal auditors, independence is the freedom from conditions that threaten the ability of the internal audit activity or the Chief Audit Executive (CAE) to carry out internal audit responsibilities in an unbiased manner. Independence permits internal auditors to render the impartial and unbiased judgments essential to the proper conduct of engagements.
Objectivity is defined in the IIA Standards as an unbiased mental attitude that allows internal auditors to perform engagements in such a manner that they have an honest belief in their work product and that the quality and integrity of their work is not compromised in any way.
Internal Audit’s work includes assessing the tone at the top and the risk management culture of the organisation as well as evaluating the effectiveness and efficiency of management policies, procedures and controls.
Internal audit works closely with all levels of management in the organisation to review operations and to report on findings. The internal auditor must have a clear understanding of strategic objectives and the operations of the organisation.
The following are some of the benefits a business receives by having an internal audit function:
- Reducing and identifying risk in the business
- Recommending controls that will reduce risks
- Providing assurance as to whether management and employees are performing their functions
- Highlighting areas of potential fraud or theft and if there is fraud red-flagging this for further investigation
- Working together with management to improve the performance and production of the business
- Documenting the process and control framework currently operating and identifying gaps in controls
- Assessing compliance to statutory, tax and legislative regulations
Pieter Booyens & Associates can assist you with the following to ensure that you gain the full benefit that internal audit can offer your business:
- Guide and mentor your current internal auditor or internal audit department to become compliant with the standards, guidelines and requirements of the Institute of Internal Auditors
- Provide training and root cause analysis on audit findings
- Quality evaluation of your internal audit function
- If you don’t have an internal auditor or internal audit department we can render the full spectrum of internal audit function, tailored for the business needs
- Assist with the establishment of an internal audit department
- Act as an independent member of your audit committee and transfer skills to committee members
- Create an internal audit and audit committee charter