What happens after the auditors leave? Bridging the gap between the Audit Report and improved organizational performance results in Developing nations
Tuesday, October 6, 2020
Recurring internal and external audit findings are common in many organizations. One of the reasons for this is that inefficient organizational processes are used when controls are designed for these processes, resulting in sub-optimal organizational results. This contributes towards recurring audit findings, as the combination of the process and control environment still leaves control gaps and residual risk.
Auditors usually have expertise in identifying risks, control weaknesses and financial misstatements, not in reviewing process efficiencies. When a sub-optimal process is controlled by an efficient control environment, or an efficient process is controlled by a sub-optimal control environment, the chance of optimal results is limited.
Organizations require niche skilled people to link audit recommendations and process analysis to improve organizational results.
Louis Thomas Herman
Subject Matter Expert – Governance, Assurance, Risk and Compliance, NVNT, South Africa
I have external and internal audit experience, spanning more than 22 years in the financial, manufacturing, steel, defense and aerospace industries, including several years as head of internal audit. I have consistently searched for ways that audit can provide a holistic approach to support optimal organizational results.
I have identified that internal and external audit cannot provide organizations with the required solutions to implement reported audit recommendations in this holistic context and that additional skills and expertise is required to close this loop.