The Institute of Internal Auditors defines Internal auditing as “an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.” https://www.theiia.org/
The purpose of internal audit is to provide protection against risk. It is an essential tool that management uses:
- To improve effective planning and controls.
- In facilitating continual performance improvement.
- In ensuring compliance with company rules and regulation.
- To play a key role in the company’s overall governance system, etc.
It is the job of the auditors to make recommendations for progress and continual improvement in the organization. It must be understood that internal audit is like a camera — it does not make judgments, but simply captures and presents what it sees. If the picture is beautiful, it reflects beauty; if it is unpleasant, it reflects that as well. In either case, the camera is neither praised nor blamed, because it is only performing its function. However, based on the image produced, we can adjust and readjust our postures accordingly.
Internal audit activities are post-mortem in nature, as they review past activities and transactions of an organization with the aim of improving processes and controls. They are like the side mirrors of a car, which enable the driver to look behind, make informed decisions, and know when to divert or overtake safely. In the same way, internal audit helps organizations identify risks, correct weaknesses, and navigate toward their objectives safely and effectively.
It would be very hard to believe if we are to reverse the above subject to read as “Internal Audit hurts organizations, it does not help.” Therefore, it is obviously true that internal audit really helps; its roles and responsibilities are meant to assist management to discharge its responsibilities.
So, those of us in the corporate settings should not be audit-phobic. We should view audit as an assessment of operations aimed at improving processes, rather than as witch-hunting, a cause of delays, or a nuisance. As we celebrate this year’s Internal Audit Awareness Month, the Internal Audit team at Rex Insurance Ltd remain committed to collaborating with all stakeholders to ensure the achievement of our corporate goals.
Thank you for reading this.
