أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
Why is it that internal auditors are the most users of the terminology "add value" ? Do you hear other functions in your company use it as often ? Do internal auditors use it to justify their existence to others and/or to convince themselves that they are valuable to their organizations ? And finally do they really add value and how? The glossary section of the IIA standards defines add value as follows : "The internal audit activity adds value to the organization ( and its stakeholders) when it provides objective and relevant assurance and contributes to the effectiveness and efficiency of governance,risk management, and control processes." Isn't this what they are supposed to do anyway? Is adding value means doing your job as prescribed by your job description or does it go above and beyond what is expected of you ? Can you in your own words describe how you add value to your organization using at least one practical example ? Do you know what is your stakeholders definition of "adding value" ? Did you ever asked them? I am not trying to offer answers here ,but rather to start a self-dialogue !! Source:http://waelbibi.blogspot.ca/
Internal Audit has two roles, value preservation and value enhancer.
Value Preserver: This role requires IA to ensure that policy and procedures are followed as defined by the management.
Value Enhancer: Whenever IA encounter a situation which is not provided by the management in policy and procedures Or a situation which where nothing is specified and IA suggest a recommendation which can help prevent losses, improve efficiency, allow management to generate revenue, value is added by the management.
Value enhancer in the absence of value protection is consulting and may undermine the role of IA.
Value protection without value enhancement is compliance.
What is expected from IA is value protection alongwith value enhancement.
I agree with Keith, who explained in detail the roles and objectives of IA.
While Mr. Wa'el has asked about value addtions by Internal Auditors (IA) and how IA can contribute to their stakeholders.
Lets understand who are OUR stakeholders; they are Owners and shareholders, customers and employees. How each category of stakeholders needs 'value addition'. Owners and shareholders main aim to generate MORE revenues and profits. Customers needs BEST, safe and sound services, while our employees needs the Best international policies, procedures and corporate governance (without any conflict/risk) to carry out the business in long run and in sustainable and ethical manners.
Now how IA achieves and add value to all of them is clearly explained in Keith J comments..
It is basic job of an internal auditor to check whether company policies and procedures are being implemented in routine business or not. Internal Auditor also highlight the weak areas of business and recommend steps for improvements. so they help the business to minimize the risk by ensuring the proper implementation of SOPs.
Internal Auditors report to the company management.
'Add Value' is being over-used; I tell my customers that 'internal audit is a 'tool' which is used to bring efficiency and effectiveness to any process, department or organization'. I encourage them to use this 'tool' and that it will help in achieving what you are trying to achieve. When we keep on saying 'we add value' the customer takes it as if we are saying we are smarter in their area or domain and presumably this makes them uncomfortable.
Because they are some people, they work professionally to work out their way through a constant general relationship.
I strongly agree with IIA about adding value. In my experience as the head of the assurance team, I constantly provided recommendations to the Finance Business Partners of identified control weaknesses and the process to strengthen the control weakness in each business area. This then lead to the reduction in the number of external audit findings and reduction of external audit time which achieved an audit saving of 25% (R35000000). If this is not a value add to business then what is?
Internal auditing provides insight into an organization's culture, policies, procedures, and aids board and management oversight by verifying internal controls such as operating effectiveness, risk mitigation controls, and compliance with any relevant laws or regulations