Stakeholder perceptions on the role of internal audit in risk management : a mining industry perspective

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Date

Authors

Whitehorn, E.
Barac, Karin

Journal Title

Journal ISSN

Volume Title

Publisher

Southern African Institute of Government Auditors

Abstract

Organisations are faced with risks that can hinder them from meeting their objectives: these risks are both expected and unexpected and could include ‘black swans’. The internal audit function assists management by providing assurance regarding the effectiveness of its risk management processes. By applying a risk-based audit approach internal auditors could enhance the risk management process. However, the literature indicates that the internal audit function may not be playing the role in risk management that its stakeholders require. Interviews were conducted with four groups of stakeholders in the risk management process in the mining industry to identify the expected role of internal audit. The research found that internal audit was performing in line with expectations, but must in future play a bigger role in determining the organisation’s strategic direction by challenging risk identification and assumptions, thereby promoting sustainability. This requires enhancing their technical skills in understanding operational risks specific to mining.

Description

Keywords

Internal audit, Risk management assurance, Risk-based auditing, Risk-based audit plan, Mining sector, ‘Black Swan’

Sustainable Development Goals

Citation

Whitehorn, E & Barac, K 2015, 'Stakeholder perceptions on the role of internal audit in risk management : a mining industry perspective', Southern African Journal of Accountability and Auditing Research, vol. 17, no. 2, pp. 145-158.