Internal Audit Function (IAF) is mandated by the Act for all parastatals. It is deemed a very crucial part of governance as per several governance codes around the world. Why so, you may ask! The Institute of Internal Auditors (IIA) Global in its framework describes the IAF as ‘an independent, objective assurance, and consulting activity designed to add value and improve an organization’s operations,’ through the International Professional Practices Framework (IPPF 2017)
The function is set up as an independent assurance provider to the Senior Management Team (SMT) and the Council that the daily operations undertaken by the BIUST community will lead to achievement of set goals. The standards that guide the operations of the function and the code of ethics that govern the conduct of the internal auditors will assist BIUST in the achievement of the set goals. The Director of the IAF should report to the Council Audit and Risk Committee (CARC) and internal auditors must conduct their work freely and objectively to ensure their independence. The function should be supported by the BIUST SMT, CARC, and the Council.
IIA was formed in 1941 with its headquarters in Lake Mary, Florida (USA) and is now established in over 170 countries serving over 200 000 members worldwide. To ensure that internal auditors operate in the same manner worldwide, the institute developed the “Holy Grail’ of the profession known as the International Professional Practice Framework (IPPF)®. This is a story for another day but in short, the IPPF provides a structural blueprint of how a body of knowledge and guidance fit together to assist internal audit practitioners and stakeholders in operating effectively in the current market and future. All in all, as Christians lean on the Bible, Muslims lean on the Qur’an for their respective religious practice, Internal auditors delve into the IPPF to provide a systematic and professional service.
INTERNAL AUDIT PUZZLE:Internal Audit is a system that scopes and tests records by looking at the procedures and standards in place to identify risks that must be controlled to achieve quality work. Internal Audit results are communicated to the relevant stakeholders through quality audit reports.