January 2025

Value for Money (VFM) audits, also known as performance or efficiency audits, are designed to evaluate whether an organization is utilizing its resources in an economical, efficient, and effective manner. Unlike traditional financial audits that focus primarily on accuracy and compliance, VFM audits assess how well public funds or organizational resources are being managed to achieve desired outcomes. These audits are particularly prevalent in the public sector, where there is a strong emphasis on accountability and transparency, but they are also increasingly used in private and non-profit sectors to promote operational excellence.… Read more

Internal audit assignments encompass a wide range of activities designed to provide independent, objective assurance and consulting services that add value to an organization. These assignments are aimed at evaluating and improving the effectiveness of risk management, internal controls, governance processes, and operational efficiency. Internal audit assignments vary depending on the organization’s size, industry, regulatory environment, and risk profile. By conducting these assignments systematically, internal auditors help organizations achieve their objectives while ensuring compliance with policies and regulations.… Read more

While the internal audit function plays a crucial role in enhancing governance, risk management, and operational efficiency, it is not without limitations. Internal audit provides independent and objective evaluations of an organization’s internal controls, risk management processes, and compliance with policies and regulations. However, constraints related to scope, resources, independence, and the dynamic nature of business environments can limit the effectiveness of internal audit. Recognizing these limitations is essential for setting realistic expectations, ensuring appropriate support from management and the board, and integrating internal audit as part of a broader governance framework.… Read more

Fraud and error present significant risks to the integrity and reliability of an organization’s financial statements, internal controls, and overall governance. Fraud refers to intentional acts of deception for personal or organizational gain, while errors are unintentional misstatements or omissions in financial reporting. Both can have serious financial, legal, and reputational consequences. Understanding the responsibilities of management, internal auditors, and external auditors in preventing, detecting, and responding to fraud and error is essential for maintaining transparency, accountability, and stakeholder trust.… Read more

Internal audit is an independent, objective assurance and consulting function designed to add value and improve an organization’s operations. By evaluating risk management, internal controls, governance processes, and operational efficiency, internal audit helps organizations achieve their strategic objectives while ensuring compliance with legal and regulatory requirements. Unlike external auditors, who focus primarily on financial statements, internal auditors cover a broader range of activities, from operational processes to risk management frameworks, making them a vital component of effective corporate governance.… Read more

Business risk refers to the potential threats or uncertainties that could negatively impact an organization’s ability to achieve its objectives, maintain profitability, or sustain operations. These risks arise from a wide range of factors, including internal processes, external environments, regulatory changes, and economic fluctuations. Managing business risk is essential for organizations to safeguard their assets, maintain stakeholder confidence, and ensure long-term success. Effective risk management involves identifying potential threats, assessing their likelihood and impact, and implementing strategies to mitigate or control these risks.… Read more

The scope of the internal audit function extends beyond traditional financial auditing to encompass a comprehensive evaluation of an organization’s governance, risk management, and internal control processes. Internal audit provides independent, objective assurance and consulting services designed to add value and improve organizational performance. By assessing a broad range of activities, including operational efficiency, compliance with laws and regulations, IT systems, and strategic initiatives, internal auditors play a critical role in helping organizations achieve their objectives while maintaining accountability, transparency, and integrity.… Read more

The regulation of internal auditors ensures that the internal audit function operates with integrity, independence, and professionalism. Unlike external auditors, who are subject to statutory regulations and oversight by government bodies, internal auditors are primarily governed by professional standards, ethical codes, and organizational policies. The Institute of Internal Auditors (IIA) sets the globally recognized framework for internal auditing through its International Standards for the Professional Practice of Internal Auditing (IIA Standards) and Code of Ethics.… Read more

Internal and external audits are essential components of an organization’s assurance framework, each playing a unique role in ensuring the accuracy of financial reporting, compliance with regulations, and the effectiveness of internal controls. While both functions contribute to organizational governance and risk management, they differ significantly in their objectives, scope, reporting structures, and methodologies. Understanding the distinction between internal and external audit is crucial for organizations to leverage both functions effectively, enhance transparency, and maintain the trust of stakeholders.… Read more

Assessing the need for an internal audit function is a critical decision for organizations seeking to strengthen their risk management, governance, and internal control processes. Internal audit provides independent, objective assurance and consulting services that add value and improve organizational operations. The decision to establish or expand an internal audit function depends on various factors, including the size and complexity of the organization, regulatory requirements, risk exposure, and the existing control environment.… Read more