The Contribution of the Internal Audit Function in Risk Management

Abstract

This study aimed to identify the contribution of internal audit in risk management in Syrian public and private banks, the questionnaire was used in collecting the initial data, which was distributed to a sample of board of directors and executives in these banks.The study found that there is a contribution to the internal audit function in risk management in all Syrian public and private banks and there are no statistically significant differences on this contribution.The study recommended of the need to conduct training courses for workers in the internal audit function and issue instructions and necessary legislations to regulate the activity of internal audit in banks, a committee of internal audit must be formed within the Association of Chartered Accountants in Syria, where its mission is to the development of internal auditors and the need for cooperation of professional organizations of accounting, auditing and regulatory bodies in Syria to establish an association for internal auditors to qualify them and give them a professional certification to carry out their roles under the new framework for exercising of the profession that guarantees to provide the necessary advice and guidance for them to bring the profession up to the required level.

Investigating the Role of Internal Audit in Risk Management in Selected Public Institutions in Ghana

“…The outcomes of this study are also consistent with Kerazan (2016) and Ching and Colombo, (2014) who aver that internal auditing plays a key role in risk management in public organisations by providing information based on which decisions are made. Internal auditors, therefore, assess the various risks public organisations are exposed to and proffer measures for consideration in reducing the effects of these risks.…”

“…Auditors are also expected to communicate the risks identi ed to organizational leaders and proactively recommend improvements to help mitigate the risks. Best practices demand that internal auditors have direct access to the highest decision-making body of the organisation so that their recommendations can be considered and implemented (Kerazan, 2016).…”

“…Beyond the systems in place, internal auditing also entails evaluating the commitment of management members to risk management in the organisation. Relating to this, they also advise management on how to integrate risk management into the operations of the organisation (Kerazan, 2016;Endaya & Hanefah, 2013).…”

“…Internal audit reports also contain information about best practices which can be considered to address the risks faced by organisations. Concerning the point above, internal audit reports can also change organisational management's perceptions about risks (Kerazan, 2016). That is, it can focus on the opportunities within risks so that management attention will not only be on the negatives.…”

“…Identifying and managing risks is a key enterprise function which usually involves several units and departments as risks may emerge from a plethora of sources. However, there is a strong relationship between the internal audit function and risk management in organisations (Kerazan, 2016). Internal audit enjoys a special position in organisations, its contribution to effective corporate governance has been brought into sharp focus after the global nancial crises (Soh & Martinov-Bennie, 2011).…”