Esther Oluku
Internal audit executives have warned that the consequences of marginalising internal audit could be dire for business organisations.
Speaking at the Audit Committee Institute Conference held in Lagos, they said internal audit marginalisation could lead to corporate failure.
In a presentation titled, “Internal Audit: Guarding the Truth from Inside,” former Chief Audit Executive, Nigerian Institute of Management and West African Portland Cement Company (WAPCO), Festus Ogunmokun said internal audit marginalisation cost Emron $60 billion in market capitalisation, led to the missing of 1.9 billion euros by Wirecard, and the concealing of $1.2 billion for years in Toshiba.
He said that internal audit has the mandate of not just detecting irregularities in business organisations but to also prevent them.
In his presentation, “Gate-Keeping: Detecting Error and Fraud in Financial Reporting,” former President of the Institute of Chartered Accountants of Nigeria (ICAN), Doyin Owolabi, said gate-keeping requires a posture that is informed, vigilant and attending.
According to him, gatekeepers ensure that financial statements reflect economic reality. On his part, Founder and Chief Executive Officer, Regulatory Compliance Readiness Advisors Limited, Dr. Iheanyi Anyaghara, said independence transforms technical audit work into credible, trusted assurance.
He argued that without independence, assurance collapses into affirmation and oversight becomes a ritual.