Page 29 - IIA MAGAZINE_March 2017_English
P. 29
TO COMMENT on the article, Internal Control
EMAIL the author at lalitrdua@gmail.com
• Objectives are achieved. What is Internal Audit’s role? partner, etc. It is therefore incumbent on
• Decisions are properly authorised. the Chief Audit Executive to have deep
• Reliability and integrity of The role of Internal Audit is usually defined knowledge of the organisation and its busi-
information. in the Internal Audit Charter approved by ness activities through review of strategic
• Assets are safeguarded. the Audit Committee. The charter may also and business plans, risk assessments, and
• There is compliance with laws, include organisation expectations about In- other relevant information.
regulations, policies and contracts. ternal Audit and its value-add. The charter Ultimately, the Chief Audit Executive
• Efficiency, effectiveness, economy and should be circulated to key management so needs to drive the ‘audit environment’ and
ethics of business activities is promoted. they understand Internal Audit’s obliga- provide continuous review of the effective-
• Opportunities for fraud and tions, but also their obligations. ness of governance, risk management and
corruption are minimised. The standing of Internal Audit in an or- control processes by:
ganisation can be raised by the Chief Audit
Stakeholders contribute to make this Executive becoming a trusted adviser to • Providing independent, unbiased
foundation strong and effective. management. It is up to the Chief Audit assessment of an organisation’s opera-
Executive to effectively communicate with tions.
The role of Internal Audit is well-de- management, develop a stakeholder rela-
fined, with the ‘International Professional tionship strategy, and implement actions • Offering information to management
Practices Framework’ (IPPF) issued by designed to develop a partnership rela- on the effectiveness of governance,
the Institute of Internal Auditors stating tionship with management that together risk management and control process-
Internal Audit’s mission as: improves the business. es. To comment Email the author at
“To enhance and protect organisational The standing of Internal Audit in an or- lalitrdua@gmail.com
value by providing risk-based and objec- ganisation can be raised by the Chief Audit
tive assurance, advice, and insight.” Executive becoming a trusted adviser to • Acting as a catalyst for improvements
management. in governance, risk management and
In this context, Internal Audit has a duty Is it important to have a control control processes.
to work with management to improve the environment?
organisation’s risk management, control • Advising management what it needs
and governance processes. The existence and robustness of a ‘control to know, when it needs to know it. To
environment’ has been emphasised for be successful, the Chief Audit Exec-
An ‘audit environment’ many years, has been discussed by Audit utive needs to have deep knowledge
would see Internal Audit Committees and management, and in of the organisation and its business
services focus on strategic some jurisdictions is required by law. activities.
and operational issues In conjunction with the ‘control environ-
important to the business, ment’, an ‘audit environment’ can be de- Conclusion
veloped and implemented in collaboration
with a collaborative between the Chief Audit Executive and The Chief Audit Executive needs to devel-
partnership formed management. The Chief Audit Execu- op a relationship with the Audit Commit-
between Internal Audit and tive should ideally be seen as a business tee and management through compelling
partner. The Audit Committee can assist analysis and data that provides clarity and
management. Internal Audit’s contribution to the organ- encourages management to make timely
isation by making the ‘audit environment’ remedial actions.
complementary to the ‘control environ-
ment’. A spin-off is likely to be greater As a ‘governance guardian’, the Audit Com-
acceptance of Internal Audit by the people mittee will be more confident of the audit
who are audited. environment’ being effective if Internal
In conjunction with the ‘control envi- Audit steps up and collaboratively tackles
ronment’, an ‘audit environment’ can be important business issues and risks.
developed and implemented in collabo-
ration between the Chief Audit Executive That is where the real value of Internal
and management. Audit can be found and where organisation
Who is responsible for that? value can be enhanced.
Internal Audit needs to step up and
collaboratively tackle important
business issues and risks.
The Chief Audit Executive is often con- Lalit Dua
sidered to have many roles, such as an
appraiser, consultant, facilitator, business Vice President Internal Audit in Health care
group Dubai
29 INTERNAL AUDITOR - MIDDLE EAST MARCH 2017
