Internal audit and risk management in South Africa : adherence to guidance

Abstract

Risk management is a relatively new addition to the wider concept of corporate governance. Sound corporate governance requires, among other things, that the board should ensure that there is an effective risk-based internal audit. The importance of internal audit within risk management and assisting the board of directors in this regard cannot be over-emphasised. The formal guidance of the IIA should be a starting point for internal auditors when performing their duties. Further applicable and comprehensive guidelines and legislation in this regard are urgently needed. This article aims to obtain input from heads of prominent internal audit functions within the private and public sectors on the role of internal auditing in the management of risk.

Risikobestuur is 'n relatief nuwe ontwikkeling binne die groter konsep van kor-poratiewe beheer. Goeie korporatiewe beheer vereis onder andere dat 'n direksie moet verseker dat effektiewe risikogebaseerde interne oudit uitgevoer word. Die belangrikheid van interne oudit binne risikobestuur en hul rol om die direksie in dié verband by te staan, kan nie oorbeklemtoon word nie. Die formele riglyne van die IIA moet die beginpunt wees vir interne ouditeure tydens die uitvoering van hul pligte. Verdere toepaslike en omvattende riglyne hieroor word dringend benodig. Hierdie artikel het ten doel om insette van hoofde van prominente interne ouditdepartemente in die private en openbare sektore aangaande die rol van interne oudit in die bestuur van risiko te bekom.