Why internal auditors keep telling us that they add value?

yes doing your job as Internal Auditor is to add value as it described by job description addition to auditing.
there are many ways internal auditor can add value to his organization:
1- in addition for auditing internal auditor job is to advise the management and provide consult to them for best practices and benchmarks.
2- recommendation on the audit finding for best controls may applied is one of the value added to the management by auditor.
and more value adding you can recognized in the special assignments by audit community.

I have heard many different definitions of 'value addition' but these can all be summarised by "any support provided in making progress towards defined objectives".
All members of an organisation, irrespective of which department/function/role they perform, should be "adding value" towards the achievement of business/organisational objectives.
Executive management has responsibility for designing processes which manage risk efficiently to render reasonable assurance that objectives will be achieved.
Internal Auditors objectively assess the processes that Management employ to achieve objectives and, where appropriate, make recommendations for their improvement.
Even where Internal Audit conclude that no improvement in processes is cost justified, the assurance that Internal Audit renders in reporting its objective conclusions strengthens an organisations corporate governance framework - something a number of countries have had to learn the importance of the hard way e.g.
you will no longer hear the Heads of Regulatory Authorities talking about 'light touch' regulation/supervision.
The value addition of a professional Internal Audit department can best be appreciated in the '3 Lines of Defence' ERM framework model.
K.R.Johnston, MBA, CPFA, CMIIA.

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.. 

Internal Auditors job is not to add value but to cover and mitigate the risks in the business processes. 

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

Yes , of course , It has got some limitations