INTERNAL AUDIT

WHAT IS INTERNAL AUDIT?

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

WE PROVIDE THE FOLLOWING CONSULTING SERVICES

Internal audit is more than about just the numbers/ financials, It’s aim is to provide assurance not only that the systems and controls in place operate effectively (and are well designed) to assist in mitigating key strategic and operational key risks relevant to the organization but to also give guidance to the business (in the form of consultation) with regards to key controls that would need to be put in place during the role out of a new venture/project

OBJECTIVES OF AN INTERNAL AUDIT

To assess the effectiveness and efficiency of a company’s operations;
To assess compliance with the applicable laws and regulations;
To assess reliability and integrity of financial and operational information, and;
To assess compliance with internal policies and procedures.

Our scope of work is designed to ensure the accomplishment of the assigned objectives mentioned above.

Below is a summary of the scope of work we can perform:

Reviewing the adequacy of internal controls;
Reviewing the reliability and integrity of financial and operating information
Reviewing the systems established to ensure compliance with policies, plans, procedures, laws, and regulations which could have a significant impact on operations
Reviewing controls in place with regards to the safeguarding assets;
Reviewing and appraising the economy and efficiency with which resources are employed;
Reviewing operations or programs to ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned;
Reviewing specific operations at the request of the Audit Committee or management, as appropriate; and
Monitoring and evaluating the effectiveness of the company’s risk management and governance processes.

Once an audit is completed, Internal audit provides an audit report detailing the work done and control weakness identified. Internal audit recommends action to be taken in order to resolve the control weakness identified.

Management provides input into this process to enable timely resolution of the weaknesses

Identified, while taking into consideration practical challenges.

*The difference between internal audit and External Audit

While sharing some characteristics, internal and external audit have very different objectives. These are explained in the table below:

REPORTS TO:

Internal Audit:
Shareholders or members who are outside the organisations governance structure.

Enternal Audit
The board and senior management who are within the organisations governance structure.

OBJECTIVES

Internal Audit:
Add credibility and reliability to financial reports from the organisation to its stakeholders by giving opinion on the report

Enternal Audit
Evaluate and improve the effectiveness of governance, risk management and control processes. This provides members of the boards and senior management with assurance that helps them fulfil their duties to the organisation and its stakeholders.

COVERAGE

Internal Audit:
Financial reports, financial reporting risks.

Enternal Audit
All categories of risk, their management, including reporting on them.

RESPONSIBILTY FOR IMPROVEMENT

Internal Audit:
None, however there is a duty to report problems.

Enternal Audit
Improvement is fundamental to the purpose of internal auditing. But it is done by advising, coaching and facilitating in order to not undermine the responsibility of management.