What Is The Importance Of Internal Auditing?

It is evident that internal auditing can only be a trusted corporate governance structure if it deemed effective. Internal auditing therefore adds value by achieving organisation’s economy, efficiency and effectiveness, through providing consulting services by means of assisting management and employees with operations and assurance services in the achievement of strategic objectives. Thus it is arguable that internal auditing plays a value adding role not only by helping external auditors to better understand the organisation’s operational process, but by proving economic benefits in reducing external audit fees (Dessalegn, 2010). Prior studies show that the degree of effectiveness of internal auditing in an organisation varied depending on

Attribute standard 1110 puts emphasis on the independence role in the organisation by allowing the Chief Audit Executive to have direct and unrestricted access to senior management and the board of directors. Various Practice Advisories, example Practice Advisory 1120-1 that addresses the need to avoid potent conflicts of interests and bias attitude by individual auditors which can be achieved through segregation of duties in assignments. Statistics conducted reveal that 67 percent of respondents believed that they fully comply with the IIA standard 1100, while 88 percent fully agree that the standards provide guidance with respect to independence and objectivity (Stewart, 2010). It is apparent that the IIA standards are the foundation to assure internal audit effectiveness in the work

This raises more concerns regarding the integrity of the internal audit function in the South African public sector. Many studies conducted among the top consulting firms show a widening expectation gap between internal auditing and its stakeholders. This is due to one of the top strategies outlined in IIA (2017) of internal auditing to focus on the alignment of activities with the help of key stakeholders. It is therefore necessary for internal auditors to know who their key stakeholders are and what do they require from them to enhance internal audit