The Institute of Internal Auditor (IIA) offers the following
description: "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.
The internal audit team is expected to be the whistle-blower
within the company and alert the management about any wrong method
being practiced or committed by the staff and officers of the
company. The advance alerts may help the company to avoid bigger
losses, stop undesirable malpractices and shield itself from the
scorching scrutiny of government people. In fact internal auditors
are expected to be the conscience keepers of the company.
Accordingly key roles and responsibilities of internal audit
team are summarised below:
- evaluates and provides reasonable assurance that risk
management, control, and governance systems are functioning as
intended and will enable the organisation's objectives and goals to
be met
- reports risk management issues and internal controls
deficiencies identified directly to the audit committee and
provides recommendations for improving the organisation's
operations, in terms of both efficient and effective
performance
- evaluates information security and associated risk
exposures
- evaluates regulatory compliance program
- evaluates the organisation's readiness in case of business
interruption
- engages in continuous education and staff development
- provides support to the company's anti-fraud programs.
- Performs the audits and reviews in the Internal Audit Plan in
the diverse and computerised environment in DIT
- Agrees the annual Internal Audit Plan with the President and
the Audit Committee
- Monitors and evaluates the adequacy and effectiveness of the
System of Internal Control in DIT.
- Internal Audit provides a consulting service for Management to
aid the identification of risks and to advise on the implementation
of systems of control in order to minimise financial operational
and governance risks
- Makes recommendations to management about improving the
operational, financial and governance control systems with a view
to attaining best value for money in DIT .
- Provides an objective assurance for management and other
stakeholders
- Internal Audit staff report regularly to the Audit Committee
and to the President of DIT.
- Provides analysis, advice and information to management