The Institute of Internal Auditors (IIA-Ghana) has advised corporate leaders to invest in the internal audit units of their various organisations.
It noted that many organisations considered their internal audit units unimportant, and added that the posture was detrimental to the growth of the units and the development of businesses, as well as to the growth of the auditing profession.
The President of the IIA, Mr Eric Yankah, gave the advice at a lecture organised by the institute in collaboration with PriceWaterhouse Coopers (PWC), an international auditing company for internal auditors in the country.
The participants shared ideas on how to improve the understanding of the profession, as well as foster a closer relationship with stakeholders.
According to Mr Yankah, some institutions refused to invest in internal audit units; a situation which deprived those institutions of expert advice on how to avoid risks.
Erroneous impression of internal auditors
Mr Yankah indicated that people usually considered internal auditors as those who only checked vouchers and money, and were therefore usually relegated to the background.
Contrary to that negative view, he said, internal auditors were also responsible for risk management and assessment, as well as control.
Due to the important role they played, he said, there was the need for investment in internal audit.
Guest speaker
Speaking on the theme: “Expanding the Boundaries of Internal Audit with the updated COSO Framework,” a member of the IIA Global Board, Mr Rob Newsome, said internal auditors concentrated on control activities without considering other relevant functions or areas.
He said professionals needed to control their environment, engage in monitoring activities in the organisation, as well as risk assessment.
COSO Framework
The COSO is an acronym for Committee of Sponsoring Organisation, which was put together by a team of professionals, especially in accounting and auditing.
The framework has been accepted globally by professionals in the field of accounting and auditing.
Throwing more light on the framework, Mr Newsome said it provided various principles and controls that ought to be complied with by the professional.
He charged auditors to prove themselves trustworthy and called on the management of various organisations to assist their internal auditors to discharge their duties effectively.