Internal auditors and protecting the public good

06 November 2019 | Business

Linda Elago - There is greater demand across the world for improved governance and management in the public sector, and this holds true in the Namibian context.

The reason is apparent as government is the single largest business entity, generating significant economic activity through its expenditure and various functions (Unegbu & Kida, 2011). Additionally, the government’s social and economic activities are in part funded by the public through taxes, which further validates the public’s demand for improved governance.

The golden question is, how does the role of internal audit aid in protecting the public interest?

According to the Institute of Internal Auditors (IIA), internal auditing is defined as “an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations”.

Definition

In dissecting the first part of the definition, it is key to note that “organisation” refers to institutions in both the private and public sector.

The definition further states that internal auditing “helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes”.

The latter part of the definition highlights internal audit’s responsibility in assessing and recommending improvements to governance, risk management and controls to ensure that these processes function efficiently and effectively.

Internal auditors evaluate processes to identify and report on areas of mismanagement, wasteful and fruitless expenditures.

Consequently, recommendations are made to either prevent or detect the malfeasance and ensure that proper corrective actions are taken. Through these evaluations and recommendations, internal audit can help public sector organisations manage their resources in the most impactful way, thereby achieving their objectives, and ultimately benefiting the public. Additionally, although it is not a direct responsibility, internal auditors may report on instances of fraud and corruption encountered during the course of their work.

Cornerstone

In extension to identifying and reporting on malfeasance, internal auditors perform services to identify opportunities for optimisation, efficiencies and cost savings.

As citizens and funders of the government’s economic activities, poor governance and risk management directly affects our livelihood, economic and social standing (Chambers, 2019).

Internal audit is a cornerstone of good governance and is instrumental in helping public sector organisations achieve their objectives through its evaluation of and recommended improvements to governance, risk management and control processes. As a result, the government can reap greater returns on its economic activities which can be ploughed back into programs and activities that benefit society at large.

Linda Elago is the manager of internal audit at PwC Namibia. Contact her at [email protected]

References

Chambers, R. F. (2019, October 28). Internal Auditing and the Public Good. Retrieved from Internal Auditor Online: https://iaonline.theiia.org/blogs/chambers/2019/Pages/Internal-Auditing-and-the-Public-Good.aspx

Unegbu, A. O., & Kida, M. I. (2011). Effectiveness of Internal Audit as Instrument of Improving. Journal of Emerging Trends in Economics and Management Sciences (JETEMS), 2(4), 304-309.

https://www.iiasa.org.za/page/Technical_IADef

Similar News

 

Manufacturers face 'crippling blow'

19 hours ago | Business

The Namibian Manufacturers Association (NMA) yesterday “strongly condemned” government's decision to phase out “sector specific special income incentives granted to registered manufacturers” by the end...

'Timing of NEEEB most ­unfavourable'

19 hours ago | Business

Jo-Maré DuddyAmid rife speculation that the Namibian Equitable Economic Empowerment Bill (NEEEB) might soon be tabled in parliament, the Construction Industries Federation of Namibia (CIF)...

//Karas youth can help food security

19 hours ago | Business

The youth in the //Karas region should organise themselves and start agricultural projects to ensure future food security, Swapo's regional coordinator, Matheus Mumbala, has said.Mumbala,...

COMPANY NEWS IN BRIEF

19 hours ago | Business

NOC accuses UAE Libya's National Oil Corp (NOC) accused the United Arab Emirates of instructing eastern forces in Libya's civil war to reimpose a blockade...

Fears of Chinese monopoly in local cement

1 day - 13 July 2020 | Business

Phillepus Uusiku - West China Cement has proposed the acquisition of shares in Schwenk Namibia, which owns in 69.83% in Ohorongo Cement.West China Cement is...

Company news in brief

1 day - 13 July 2020 | Business

SA govt to make SAA funding commitmentThe South African government is "on course" to provide a funding commitment for the restructuring of loss-making South African...

Tax, EPZ changes nail manufactures

4 days ago - 10 July 2020 | Business

Staff Reporter – Current manufacturing incentives which have been repealed and the phasing out of the Economic Processing Zone are “drastic” changes which will hurt...

COMPANY NEWS IN BRIEF

4 days ago - 10 July 2020 | Business

Airbus deliveries hit 16-yr low Airbus deliveries rose 50% in June compared with May and reached their highest level since the coronavirus crisis spread to...

Namibia's airport gears for operations

5 days ago - 09 July 2020 | Business

Namibia's flagship airport the Hosea Kutako International Airport (HKIA) is ready for its restart plan as borders are going to gradually open under the provisions...

Farmers rue lack of post-resettlement support

5 days ago - 09 July 2020 | Business

By Edward Mumbuu JnrSome resettlement beneficiaries have expressed discontent in governments post-resettlement support programme, which they suggest, derails the productivity and profitability of such farms.The...

Latest News

A-list personalities to feature in...

4 hours ago | Art and Entertainment

Windhoek • [email protected] media personalities Robyn Nakaambo, Luis Munana, Kazembire Zemburuka and Maggy Mengo are lining up alongside other big names from different sectors to...

Manufacturers face 'crippling blow'

19 hours ago | Business

The Namibian Manufacturers Association (NMA) yesterday “strongly condemned” government's decision to phase out “sector specific special income incentives granted to registered manufacturers” by the end...

'Timing of NEEEB most ­unfavourable'

19 hours ago | Business

Jo-Maré DuddyAmid rife speculation that the Namibian Equitable Economic Empowerment Bill (NEEEB) might soon be tabled in parliament, the Construction Industries Federation of Namibia (CIF)...

PDM six face unceremonious parliament...

19 hours ago | Politics

JEMIMA BEUKESWINDHOEKIn a landmark ruling yesterday, Popular Democratic Movement (PDM) members Charmaine Tjirare and Hidipo Hamata won their High Court case in which they challenged...

2 000 companies, 16 000...

19 hours ago | Economics

OGONE TLHAGEWINDHOEKAbout 2 000 employers and 16 000 workers have so far applied to the Social Security Commission (SSC) for assistance, as Covid-19 salary cuts...

Rapist caught in the act...

19 hours ago | Crime

ELLANIE SMITWINDHOEKWhile several rapes have again been reported this weekend, an alleged rapist was caught on Friday by the boyfriend and brother of a 30-year-old...

Living the spirit of service...

19 hours ago | People

JUSTICIA SHIPENA Xenophone van Wyk recently won N$30 000 for his efforts in Tsumeb’s informal settlement of Kuvukiland through the Bank Windhoek #JourneyingTogether social...

//Karas youth can help food...

19 hours ago | Business

The youth in the //Karas region should organise themselves and start agricultural projects to ensure future food security, Swapo's regional coordinator, Matheus Mumbala, has said.Mumbala,...

More freezing weather ahead

19 hours ago | Weather

ELLANIE SMITWINDHOEKWith more cold fronts moving into the country, Namibians can brace themselves for some more freezing nights.The country has just experienced one of its...

Load More