Whereas the duties and responsibilities of an external auditor are stipulated in the Companies and Allied Matters Act, No. 1 of 1990, the duties and responsibilities of the internal auditor depends on the size and technology of the organization.
A. Main Duties of an Internal Auditor:
The internal auditor shall:
- Execute a wide range of audits and reviews in a diverse and highly computerised organisation;
- Provide an independent, objective assurance and consulting service to management, with the principal aims of evaluating and improving the effectiveness of risk management, control and governance processes;
- Make recommendations on increasing operational efficiency, having regard to value for money auditing;
- Agree the annual audit plan with the Chairman prior to approval by the Audit Committee;
- Report quarterly and as requested to the Audit Committee and to the Chairman or any person with equal position;
- On a day to day functional basis, the Internal Auditor reports to the Chairman or any person with equal position;
- Any other appropriate duties as may be defined from time to time by the Chairman.
- General Responsibilities of an Internal Auditor:
The internal auditor is generally responsible for:
- Managing the Internal Audit function.
- Developing and maintaining a charter for the Internal Audit function which reflects the Office's responsibilities, authority, and reporting relationships.
- Developing and obtaining proper approval for goals, audit work schedules, staffing plans, and financial budgets for the Department.
- Perform individual audits according to the Standards for the Professional Practice of Internal Auditing issued by the Institute of Internal Auditors (IIA) and other local professional accounting bodies like ICAN.
- Maintain personal proficiency and that of staff auditors by obtaining an adequate amount of continuing education.
- Supervise staff auditors by assigning them to jobs which match their abilities, reviewing their work, and appraising their performance.
- Participate in or conduct evaluation and cost studies as directed by the appropriate officer(s) of the organisation.
- Conduct scheduled and special audits and make recommendations for improvement.
- Continue to assess professional development and take advantage of opportunities to improve skills.
- Keep current on trends in accounting and auditing.