Page 22 - IIA MAGAZINE_March 2017_English
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Internal Audit Management
BY AYMAN ABDELRAHIM
Searching for Added Value
by identifying internal audit value
proposition in 2010, which consists of
three key elements as follows:
• Assurance: Providing assurance on
the organization’s governance, risk
management, and control processes.
• Objectivity: The Internal Audit
is committed to the integrity and
accountability through which a
value shall be provided to the senior
management in an objective and
independent manner for guidance
and advice.
• Insight: Internal audit is a catalyst
for improving an organization’s
effectiveness and efficiency
by providing insight and
recommendations based on analyses
and assessments of data and business
process.
Have you ever found it difficult to answer approach to evaluate and improve the Assurance
these questions: What is the added value effectiveness of risk management, control,
provided by the internal audit? Can and governance processes”. Internal Auditing
you convince the senior management The Value Adding term may sound
of that the internal audit adds a value ambiguous to the senior management Insight Objectivity
to the organization you are working because they have the belief that the
for? Is the added value understandable, immeasurable is unachievable. This The Internal Audit Value Proposition
clear and identified as per the internal ambiguity has been exacerbated by graphic approved by the IIA.
audit standards? If you can’t answer defining such term among the terms set
these questions, you are certainly one out in the internal audit standards. Value The Value-Adding Activities
of the many auditors who are not able Adding means “The internal audit activity The outcomes of “Delivering on the
to reply to the senior management or adds value to the organization (and its Promise” Report identify the activities
audit committee when they ask about stakeholders) when it provides objective that add value to the organization
the added value provided by the internal and relevant assurance, and contributes according to CAEs, based on the
audit. to the effectiveness and efficiency of outcomes of a questionnaire conducted in
Ambiguity of the governance, risk management, and 2015. The CAEs identified (9) out of (14)
Value Adding Concept control processes.”. This definition is very activities included in the questionnaire as
Auditors often use the term “Value general and it is confined to the objective they are adding value to the organization.
Adding” which is circulated at assurance and effective contribution, These activities are:
conferences and workshops held on the which are an integral part of the
internal audit profession. The internal characteristics of the professional internal
audit definition is influential in the use auditor.
of such term because it clearly refers to Delivering on the Promise
the internal audit. It means “An Internal In November 2015, the international
auditing is an independent, objective Institute of Internal Auditors (IIA) issued
assurance and consulting activity a report among the publications of the
designed to add value and improve an Common Body of Knowledge (CBOK)
organization’s operations. It helps an entitled “Delivering on the Promise -
organization accomplish its objectives Measuring Internal Audit Value and
by bringing a systematic, disciplined Performance”. The report addresses the
concept of value adding which started
22 INTERNAL AUDITOR - MIDDLE EAST MARCH 2017
