INTERNAL AUDIT DIVISION

What is Internal Audit?

• Internal audit is an independent, objective activity designed to add value and improve Ministry’s operations.
• It is concerned with evaluating and improving the effectiveness of risk management, control, and governance processes in the Ministry. .

Objectives

Internal Audit Service(IAS) is to provide assurance to the Executive Director and Top Management on the adequacy of controls within all financial and operating systems. That assessment is based on the risks to which the Ministry may be exposed to. It provides management with relevant reliable and objective information on the effectiveness of systems and practices in place that will ensure the achievement of the strategic and operational objectives. The Internal Audit Service provides the following four key functions:
• Fulfills the Internal Audit functions within the Ministry, and reports to Executive Director (ED) through the Audit Committee.
• Providing internal audit function as a service to top management by giving independent, management-orientated advice on the Ministry's internal control systems, operations, and performance, with a view to improving accountability and performance.
• Internal audit sets standards for and monitors compliance within the ministry.
• Undertake special investigations on behalf of Treasury and report to the Executive Director, Ministry of Finance and Public Enterprise.

Mission and Purpose

The mission of Internal Audit Service is to enhance and protect organizational value by providing risk-based and objective assurance, advice, and insight. Internal Audit further provides high-value assurance and consulting services to assist both policy-makers and functional managers in providing quality services in a manner that is accountable, efficient, effective, and ethical.

The Internal Audit Service follows the Standards for the Professional Practice of Internal Auditing established by the Institute of Internal Auditors in compliance with the Public Sector Internal Audit Policy of Namibia. These standards specify the requirements of professional internal auditing including independence, proficiency, the scope of work, and administration. The Internal auditors are part of the Ministry of Finance administration. We report administratively to the Executive Director and functionally to the Audit Committee. To perform audits effectively, it is necessary to have full access to records, properties, and personnel. All information pertaining to audits performed by the Internal Audit division is confidential. However, final audit reports fall under the Ministry of Finance and Public Enterprise’s official records.

Legislative requirement

The Internal Audit Mandate and responsibility are derived from the approved Internal Audit Charter. The State Finance Act of 1991, Sections 14 and 15 provide for the appointment of Internal Auditors and authorize their access to accounts, documents, and records to perform their audit duties.

Audit Coordination

The Head Internal Audit Service (Deputy Director) of the internal audit division, maintains an overview of all audit activities at the Ministry. The Head of Internal Audit Service interfaces with outside agencies, such as the Government Internal Audit and Policy Coordination and the Office of the Auditor General’s Office. He/she should be kept informed about all audit activities in the ministry.

In the event that agencies, such as the Office of the Auditor General, notify top management about upcoming audits or send a draft or final audit reports to departments and divisions, recipients are requested to provide copies to the Internal Audit, unless the agency has already included the head of the internal audit service on the copy list.

Consulting Services

Consulting services are advisory in nature and are generally performed at the specific request of management—the objectives and types of work performed will be collaboratively determined with top management. Examples include:

• Reviewing client-prepared responses to auditor general audit reports;
• Training on fraud prevention, internal controls, and risk assessment processes;
• Analyzing client or third-party prepared data; and
• Scribing client-facilitated risk assessment exercises.

The way in which such services are performed is generally agreed upon with top management before work starts, although the process often follows that described elsewhere on this website for Audits.
In an effort to continually improve our service to management and to the business units, we may also request the completion of a customer satisfaction survey upon completion of consulting services engagements.