Internal Audit key to Managing Risk

risks-magnifier-definition-shows-insecurity-and-financial-risks-by-stuart-miles.jpgOriginally developed as a means of assisting organisations with safeguarding corporate assets and enforcing corporate policies to preserve value, internal audit is expanding its traditional role with a new focus on value creation activities.

Accelerating change has characterised the business landscape for many years and this will continue. New competitors, technologies and financial instruments, changing cost structure and regulations, increasingly integrated global economies and other development are creating new risks and opportunities for organisations to consider.

As these developments progress, it opens a new door on opportunities for internal audit to regain its historic authority as an independent advisor to management by supporting top management goals, monitoring key risks and improving regulatory compliance efforts.

Internationally there has recently been a shift to focus more on supporting executive management in effective management of key risks.

The Committee on Internal Audit Guidance for Financial Services in the United Kingdom has after a year-long consultation issued its recommendations for effective internal audit in the financial service sector. Experts have predicted that similar recommendations will be applicable to South African firms in the near future.

The guidance presents an opportunity and a welcome push for internal audit functions to proactively move onto the front foot and increase their relevance to their respective organisations and the financial services industry as a whole. In the context of a financial services sector, which globally has been subject to intense criticism over recent years this is a welcome shift for the industry.

Internal audit is therefore starting to plays a critical role in helping companies successfully manage the change by providing assurances that with every new process, procedure and initiative, any significant new risks that emerge are identified, monitored and managed effectively. This is to ensure that the company is protected on an ongoing basis and to a level that satisfies management and the board.

 The responsibilities of internal audit are expanding and, consequently, the required skill sets are changing. Internal auditors must continue to enhance their skills and educate themselves on new technologies and competencies that will be required in the months and years to come.

The success of any internal auditor lies with that person’s commitment to ongoing learning and capabilities improvement, along with his or her deep understanding of the organization’s needs and how they can be met through the internal audit function.

Internal audit is starting to reassert its involvement in a range of risks that an organization is facing today creating exciting new challenges for all in this industry. If you are looking for greater success in your career, we can help you untangle the steps to your next job opportunity. Communicate Recruitment is a specialist finance recruitment agency, with the very best finance recruiters. We have various finance jobs including accounting, auditing, taxation, and financial manager jobs. Check out the latest vacancies and apply today!

Credit: by Stuart Miles