International Internal Audit Awareness month is celebrated every May. This calendar date was initiated by The Institute of Internal Auditors (IIA) in 1941 to highlight the significance of internal audit within and outside organisations.
Internal Audit professionals have a crucial role to play in promoting the value of the profession, among others, by contributing to the development and implementation of policies and procedures that support effective internal audit practices and promote the profession’s value.
To mark International Internal Audit Awareness month, we are featuring some of our internal auditors and highlighting their areas of expertise in the field of internal auditing.
Dr Zahier Ebrahim Group Supply Chain Director shares his experience on one of his main focuses in internal auditing.
What type of audit was conducted in your environment (assurance, advisory)?
Assurance audit was conducted. Assurance in internal audit involves assessing evidence to provide opinions or conclusions on an entity, operation, function, process, system, or other subject matter. In other words, Assurance evaluates past performance. This process can be implemented in any function of the organisation, and the purpose is for auditors to provide their opinion on the company’s state of health.
Did your perception of managing risk and having effective controls change for the better after the audit?
Yes, it did. The audit added value and improved the organisation’s operations by helping achieve its objectives through a systematic and disciplined approach to evaluating and improving the effectiveness of risk management, control, and governance processes.
Was Internal Audit (IA) knowledgeable about your department?
Over the last three years, there have been significant changes in the department, including the introduction of new policies and procedures to meet the need for greater governance. Internal audit played a significant role in contributing to this focus on governance by providing valuable insights that supported our end goals in the supply chain – they were
definitely knowledgeable.
Did Internal Audit assist you in identifying risks that were not known to you before the audit?
Absolutely, they formed an important part of the team as we worked in collaboration. The different perspective from the IA team ensured that we could adequately cover our blind spots.
Did Internal Audit keep you informed of observations/issues identified throughout the engagement and were your inputs taken into consideration?
Yes, internal audit has facilitated efficient engagement, leading to a consensus view on how to address future needs. As the techniques of internal auditing have evolved from a reactive and control-based form to a more proactive and risk-based approach, we are now able to anticipate possible future concerns and opportunities, providing assurance, advice, and insights where they are most needed.
Given your interactions with Internal Audit, would you be comfortable in inviting them to perform audits in your department?
Internal audit already conducts annual audits either within the warehouse or in procurement, and this is always welcomed, as it forms part of the “four-eye principle” which ensures that everyone in these crucial roles benefits from a second- or third-person’s validation. This is crucial as it ensures that every payment is reviewed and validated. This
way, we can be sure that payments are not altered, and any mistakes can be corrected before execution. That is why it is crucial for the second person to carefully check the details before approving them.
Considering the audits conducted in your environment, did Internal Audit live up to your expectations?
Yes, they did. The role of internal audit is to enhance and protect the organizational value by providing risk-based and objective assurance, advice, and insight. Therefore, internal auditors, along with executive management, non-executive management, and external auditors, form a crucial part of the top-level governance of any organisation.
Would you advise other managers to seek Internal audit’s professional expertise?
Absolutely. I regularly engage with our Internal Audit Manager, Viwe Mdyosi, and the auditing team to identify areas where we can improve and where we should focus our attention. I would recommend this approach to other business units as well.
How would you describe your overall experience with Internal Audit?
Internal audit is a special job and unique profession that enables us to address issues that are fundamentally critical to the survival and prosperity of any organisation. Unlike external auditors who primarily focus on financial risks and statements, internal auditors consider broader issues such as the organization’s reputation, growth, impact on the environment, and the way it treats its employees.
Lastly, how can the business provide support to Internal Audit?
It is important to engage with Internal Audit as often as possible and provide them with insights to focus their auditing activity on the most pressing areas or needs.
