Establishing An Effective Internal Audit Function

Establishing an effective internal audit function is hardly a revolutionary topic. Most if not all would agree that internal audit has a higher chance of success when it is structured on an organisation's risks and needs.

It is widely accepted that internal audit serves as the third-line of defence within an organisation's internal control framework. It provides independent, objective assurance and advises on activities that improve an organisation's operations and add value to the Board of Directors (Board) and senior management, who are positioned as the first-line of defence.

Internal audit, by convention, offers compliance and periodic audit on operations. However, such limited scope is no longer sustainable in today's business environment. To further enhance its relevance and value, internal audit needs to be involved in Enterprise Risk Management, Fraud, Cybersecurity and Information Technology security assessment. Risk management is forward-looking as