Effective Internal Auditors

[B101]

I believe we do have many auditors in jambo forum but especially in the business and economic forum.I am currently about to conduct a research on the effectiveness of internal audit service as a case study in a certain organization in Dar Es Salaam. The problem is I receive as many views as the people that try to question on the acceptable criteria to be used to assess the effectiveness of the internal audit unit. These view are more or less behind closed door views since they are not given in public, so here I am asking the JF members [preferably accountants and auditors]who have the balls to stand open criticisms to give me their views on the acceptable criteria for such assessment..."A real professional is hardly wrong but often has a different perspective on issues from other proffesionals but adapts their constructive criticism as his own"

 

[Kimambo]

if you need professional advise it cant be given in public you need to set your caontacts to easy communication as you might be chaged for the work, well that is the procedure for we lawyers i dont know for the auditors

 

[Shapu]

Well a good thread. One of the most important thing ( the MAIN thing) for the Internal Audit to be effective is the "INDEPENDENCE". This is one of the fundamental code of ethics on IFAC. By that it means, an Internal Auditor ought to be independent from the Managment. He/she should report to Audit Commitee ( which is the committee of the Board of directors, or if at all the company is a subsidiary then should report to the group auditor or somebody at the group indepent of the management. If you find an internal auditor reporting to finance manager/controller/director or GM then that is not at all right. There would be emergence of various threats including intimidation threats, advocacy threats etc etc.. upo hapo?

 

[B101]

THnx alot for ur contribution Shapu, but i have one more quick question for u..who the internal auditor reports to is one aspect of their independence, does that complete the list ndani ya independence?! Yani kama nitagundua kuwa the auditor anariport kwa bodi ya kampuni basi huyo ni independent auditor, ama? what more is there to independence ya internal auditor? As for Kimambo, ujue there's huge difference kati yetu wahasibu na ninyi wanasheria..An accountant's job is to account for any sales made, while a lawyer's job is to make sales on any account, hata kama the heading ya hiyo akaunt ni MAMA MZAZI A/C! I believe this is a forum kwa ajili ya kubadilishana mawazo bila gharama yoyote ndani ya forum otherwise tungekuwa tunalipia hizi a/c zetu kwa JF aAdmin! Ila tuko pamoja mzazi...

 

[mutua12]

Well a good thread. One of the most important thing ( the MAIN thing) for the Internal Audit to be effective is the "INDEPENDENCE". This is one of the fundamental code of ethics on IFAC. By that it means, an Internal Auditor ought to be independent from the Managment. He/she should report to Audit Commitee ( which is the committee of the Board of directors, or if at all the company is a subsidiary then should report to the group auditor or somebody at the group indepent of the management. If you find an internal auditor reporting to finance manager/controller/director or GM then that is not at all right. There would be emergence of various threats including intimidation threats, advocacy threats etc etc.. upo hapo?

loh ,the type of jf members.................

 

[prudence nkamwesiga]

majibu uliyopewa ni mazuri ingawa hayajitoshelezi,nakubaliana nawewe uliposema kuwa who the IA reports to is one aspect of their independence.Lakini unashangaza ulipoambiwa na the learned brother kuwa " you might be charged for work" ukaongelea accountant na mambo ya sales, Kuna mambo mawili, moja limekukang'anya na jingine umelichanganya mwenyewe.Unatakiwa kujua kuwa wanasheria hawatoi proffesional advice bure, ingawa inatokeaga. Vile vile auditor siyo lazima awe accountant tu!