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Internal Audit Plan and Its Alignment to Risk Strategy . Makhosandile Kwaza. Are Internal Auditors Watchdogs?. If you do not plan any way is the correct way . What is Internal Audit Plan . Legislative framework .
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Internal Audit Plan and Its Alignment to Risk Strategy Makhosandile Kwaza
Legislative framework • Section 165 (2) (a) of the MFMA requires that the Internal Audit of a municipality or municipal entity to prepare a risk-based audit plan and an internal audit program for each financial year. • On the other hand, section 45 (a) of requires that the results of performance management in term of section 41 (1) (c) be audited as part of the municipality’s internal auditing processes.
International Standards for Professional Practice of Internal Auditing (ISPPIA) • Standard 2010 requires that the chief audit executive to establish risk-based plans to determine the priorities of the internal audit activity, consistent with the organization’s goals. • Standard 2010.A1 – The internal audit activity’s plan of engagements must be based on a documented risk assessment, undertaken at least annually. The input of senior management and the board must be considered in this process.
Risk Management • A result of the risk assessment • Strategic level – municipal wide risks • Departmental level – departmental risks • IA plan takes into account strategic risks; departmental risk and other factors like AG findings