Nigeria: Increase Internal Audit’s Value By Focusing On Leadership, Says PwC
Last Updated: 1 June 2016

Firm outlines five characteristics of very effective internal audit leaders that help achieve stakeholder alignment and better performance

Lagos, 27 May, 2016: PwC Nigeria, a leading professional services firm, has called on Internal auditors in Nigeria to focus on leadership as this will increase their value contribution and help the broader organisation address emerging risks, adding that Internal audit functions with very effective leadership perform better and add greater value to the business.

This call was made by Femi Osinubi, Associate Director Risk Assurance, PwC Nigeria at a breakfast meeting to discuss findings of PwC's 2016 State of Internal Audit Profession (SOTP) survey report: Leadership matters: Advancing toward true north as stakeholders expect more which held on Thursday 25 May 2016.

The breakfast meeting, which was held in conjunction with the Institute of Internal Audit (IIA) Nigeria with the theme "Stakeholders expect more from internal audit", was part of activities held by both organisations to mark this year's International Internal Audit Awareness month. It had in attendance, internal audit professionals, Risk and Compliance personnel, audit committee members and business leaders drawn from various sectors of the economy.

The 2016 SOTP survey report presents the views of over 1,600 chief audit executives (CAEs), senior management and board members. The report among other things provides insights on how companies which today face more risks than ever, are looking to their internal audit functions to deliver value by educating stakeholders on emerging risks and leading risk management practices that would improve the business.

While presenting the report, Osinubi noted that more than half of the stakeholders who participated in the 2016 study believe internal audit is contributing significant value – up six points from 2015. The study also highlights that 62 percent of stakeholders expect more value from internal audit with 55 percent expecting internal audit to be a more proactive trusted advisor within the next five years.

"We're seeing a close correlation between strong leadership and internal audit's ability to add value and deliver high performance. To continue fostering internal audit functions to become trusted advisors within their organizations, stakeholders should promote strong internal audit leadership, while audit executives work to elevate the performance and perceptions of their respective functions.

"It's through close alignment with various stakeholders and owning internal audit's role as a leadership function within the organisation that can allow internal audit to help their companies keep up with the changing business and risk landscape. But all this can't be said and done without a clear vision, supported by a strategic plan and enabled with top talent," Osinubi said.

The report outlines five actionable characteristics that are consistently exhibited by the most effective internal audit leaders:

  1. Create and follow through on a vision

    Very effective internal audit leaders possess a strong vision that aligns with both a company's strategic direction and stakeholders' expectations. These very effective leaders translate their visions into strategic plans and also invest in capabilities in support of their vision.
  2. Source and retain the right talent

    PwC's study highlighted that CAEs identified talent shortages as the most significant barrier to increasing their contributions as leaders, and as business transformation continues to evolve, additional new skills are needed. To be a very effective internal audit leader, they must exhibit two talent behaviours that stand out from the pack: a focus on mentorship and talent development, and an ability to source the right talent when needed.
  3. Empower the internal audit function

    Empowerment by stakeholders is a clear factor in the organisational position of very effective internal audit leaders. According to PwC's report, 78 percent of very effective leaders are vice presidents or hold senior positions in their organisation.
  4. Demonstrate executive presence

    Nine out of 10 very effective internal audit leaders excel in demonstrating executive presence, bringing bold perspectives and thinking broadly about the company. Internal audit leaders must inform, educate and influence stakeholders as well as earn their trust, but they face a difficult communication challenge where internal audit functions have to communicate with a variety of internal and external stakeholders who each have different expectations of the function.
  5. Partner with the business in meaningful ways

    Partnering with the business in meaningful ways sets certain internal audit leaders apart. PwC says internal auditors should be able to stand out in three specific behaviours to become very effective leaders: 1) develop relationships built on trust, 2) build partnerships across the lines of defense to play greater roles in coordinating risk management across functions and 3) use those connections to raise their level of engagement across the organization, taking on leadership roles in working with management, compliance, legal, and other assurance functions to develop an integrated assurance strategy.

Other speakers at the breakfast meeting included Mrs Funmi Oyetunji, Chair Risk Committee, Eco Bank who highlighted the need for internal auditors to become business savvy and more proactive in their approach to considering business drivers, competencies, strengths and weaknesses within the organisation and being trusted advisors to leadership. Mr Dale Rollins, MD SAPETRO, noted the need for the internal audit function to be part of the management team hence being a part of the surgery, and not just the autopsy.

On his part, Mr Michael Ikpoki Former CEO MTN Nigeria looked at internal audit in the context of the current business environment with regulatory uncertainty, shrinking GDP, technological disruption etc and identified three areas of attention for internal auditors viz vision & strategy, execution and influence concluding that practitioners need to demonstrate clear value to be better appreciated.

Humphrey Okorie, President of the Institute of Internal Audit (IIA) Nigeria, speaking on the celebration of the Internal audit awareness month called on all in attendance to become advocates of the profession and invited all practitioners to reach out to the institute to access important information and resources to build their capacity and address challenges they may encounter on their jobs.

Notes:

1. A copy of the 2016 State of Internal Audit Profession report is available at http://www.pwc.com/us/2016internalauditstudy

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

 
In association with
Press Releases from this Firm
Recent Content from this Firm
By Taiwo Oyedele
By Taiwo Oyedele
By Taiwo Oyedele
By Taiwo Oyedele
By Taiwo Oyedele
By Moshood Olajide, Elizabeth Anaekwe, Stanley Dike, Jeff Maduka
By Taiwo Oyedele
By Taiwo Oyedele
By Taiwo Oyedele
By Taiwo Oyedele, Seun Adu, Olanrewaju Alabi
Tools
Print
Font Size:
Translation
Channels
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions