Dear Editor,

THE month of May each year is designated Internal Audit Awareness Month. It is a time when institutes, chapters and audit departments highlight the presence of the profession by staging and participating in webinars, training sessions, panel discussions and interviews to enhance awareness of a function that has become more critical than ever before, within organisations. The pandemic has pushed the Internal Audit activity to become more resilient and agile rather than placed within the perception of dormancy in a back office.
If management across all organisations and of all types really wants to be serious about elevating its standard, protecting its reputation and maintaining its credibility and position in its given industry, internal audit, if not done already, must be equipped with the necessary tools and resources to manage the ever-present scourge of risks. Risk is everybody’s business and since the internal audit function is designed to improve an organisation’s operations, management must get serious about this activity to achieve its goals.
We cannot sweep risks under the carpet like many do with missteps, errors, bad management and poor decision-making, to identify a few. Risks will flare up from ‘under the carpet’ like the fury of a stifled fire. Risks change your plans, and considering their severity, everything must be halted to deal with them before corporate life returns to some form of normalcy. The impact of certain risks can be catastrophic, like COVID-19 for so many, but if managed properly and on time, the likelihood of such risks should not reach the point of impact. This is where the internal audit activity, objectively and independently, adds value.

Internal audit, merged with the board of directors, executive management and external audit, comprises the four pillars of effective corporate governance. This cannot be achieved effectively without all four, underlining the fact that the internal audit activity is heavily relied upon for effective decision-making. It is high time that internal audit is embraced for its assurance and consultancy functions, rather than be stifled in the background. The latter is the practice of many organisations in Third World countries.
In some organisations, internal audit is considered a hindrance rather than a ‘trusted advisor’. Management in such organisations needs to reconsider its approach and treat this activity which was set up to be its right hand, with confidence. On the other hand, internal auditors must remember their ethical code and instill professionalism in every aspect of delivery. Internal auditors must ‘win’ management’s appreciation for the partnership to be effective, and where expected reliance can be attained.
During this month and continuing, the awareness of internal audit must be felt, not as ‘police’ but as partners. This corporate governance cornerstone is present to assist with a broad range of engagement services designed to help each organisation meet its objectives. One of its roles is to monitor risks and ensure that the controls in place are adequate to mitigate those risks.
The internal audit activity is designed to conduct an objective assessment of your operations, and share ideas for best practices. Internal auditors also provide counsel for improving controls, processes and procedures, performance, and risk management, while suggesting ways for reducing costs, enhancing revenues, and improving profits.
If it was not already done, use this month to realise the true potential of management’s right hand, the internal audit activity.

Yours sincerely,

Chateram Ramdihal, FCCA, CIA