Tuesday, 23 July

Internal Audit: A cornerstone for organizational success and sustainability

Feature Article
Isaac Bonney

 Internal audits play a pivotal role in enabling organizations to achieve their objectives by offering independent and objective assurance of the effectiveness of governance, risk management, and control processes. 

Mr Isaac Adjin Bonney, a highly regarded Chief Internal Auditor and certified professional, has shed light on the crucial relevance of internal audits in helping organizations reach their goals.

Mr Bonney also the Chief Internal Auditor of the  Ministry of Food and Agriculture(MoFA) shared more insights into the Ministry's International Internal Audit Awareness Month scheduled for Monday 20 to 26 May, 2024.

The awareness month is themed: Beyond Boundaries: Adding Value to MoFA  

Risk Management and Control

Internal audits assist organizations in identifying and assessing risks to their objectives, ensuring that appropriate controls are in place to mitigate these risks.

 Regular evaluations of the design and effectiveness of internal controls are conducted, which fortifies the organization's risk management framework and safeguards its assets and reputation.

Operational Efficiency and Effectiveness

Internal auditors review operational processes and procedures to identify inefficiencies, redundancies, and areas for improvement. 

By recommending enhancements, they contribute significantly to increased efficiency and effectiveness in achieving organizational goals. 

This ensures that resources are optimally utilized, and operational processes are streamlined.

Compliance and Governance

Ensuring compliance with relevant laws, regulations, and internal policies is another critical function of internal audits. Compliance audits and assessments of adherence to governance standards mitigate legal and regulatory risks, ensuring that the organization operates ethically and responsibly. 

This function is essential in maintaining the integrity and ethical standards of the organization.

Performance Monitoring and Evaluation

Internal audits monitor the organization's performance against established goals and objectives by assessing key performance indicators and conducting performance audits.

 These evaluations provide valuable insights into areas where performance may be lagging, enabling management to take corrective actions and realign with organizational goals.

Fraud Detection and Prevention

Internal audits play a critical role in detecting and preventing fraud within the organization. 

Through forensic audits and investigations, internal auditors identify fraudulent activities, assess control weaknesses that may facilitate fraud, and recommend measures to strengthen the organization's anti-fraud controls. 

This function is vital in protecting the organization from financial losses and reputational damage.

Stakeholder Confidence and Trust

By providing independent assurance to stakeholders, including the board of directors, management, shareholders, and regulators, internal audits enhance confidence and trust in the organization's operations and financial reporting. 

This assurance supports the organization's reputation and long-term sustainability, fostering a trustworthy relationship with all stakeholders.

In summary, internal audits are instrumental in helping organizations achieve their goals. 

They provide independent assurance, identify areas for improvement, ensure compliance with laws and regulations, and enhance operational efficiency and effectiveness. 

The role of internal audits in risk management, control, compliance, and performance monitoring contributes significantly to the overall success and sustainability of any organization.

Source: By Isaac Adjin Bonney, CA CPFA CFIP Chief Internal Auditor Ministry of Food & Agriculture