Experts canvas risk based internal audit
Following the crash in Forex, which has affected the economy, as businesses now witness low income with increased unemployment, accounting professionals have called for risk management processes, compliance and auditing to be in place for businesses to survive.
At a breakfast discourse organised by SIAO with the theme: “Governance, Risk and Compliance (GRC) – Improving business performance in challenging times”, partner and head, financial and risk assurance services at SIAO partners, Mr. David Raggay noted that when proper risk management is put in place, companies can fully increase their performance and especially in these challenging times.
“Times are hard and it is necessary to stay afloat and exercise proper risk management, proper governance. The GRC processes are not only for private entities, but also for the public sector. There are some government entities from my understanding that may not be complying with their own policies, they don’t properly address all the risks they are presented with and as a result there are have failed projects. These things can be better handled to harness the resources of Nigeria.”
Mr. Raggay, however, noted that internal auditing is more than its traditional rule of checking things; “it has evolved into risk-based internal audit, where it has a big hand in helping management identify and manage risks. Businesses will be surcharging themselves if they are not up to date with these processes.”
Humphrey Okorie, CEO of the Institute of Internal Auditors (IIA), Nigeria, in his presentation said that more than ever before, this is the time to embrace internal audit and demand value. “Through internal auditing, an organisation can achieve effective governance, risk management and control. A business that does not have control cannot achieve its objectives and so control is everybody’s business in an organiSation. The problem we have in Nigeria, to a large extent, is an issue of control, the concept of efficiency is most effective in this time in our economy where revenues are diminishing.”
He added that by implementing an effective risk based internal audit, you should measure the value it adds to your business without any ambiguity. “This is because it begins from organisational strategy and cannot be done independently from the objectives of the organization, which means that internal audit is in line with what the owners of the business wants to achieve and that is where value comes from.”