An important aspect of corporate governance, the role of internal audit – aka the third line of defence – is to provide independent assurance that an organisation’s risk management, governance and internal control processes are operating effectively.

Internal auditors have a professional duty to provide an unbiased and objective view. They must be independent from the operations they evaluate and report to the highest level in an organisation: executives and governors. Typically this is the Board of directors or trustees, the Chief Accounting Officer or the Audit Committee.

Internal auditors deal with issues that are fundamentally important to the survival and prosperity of any organisation: there’s no room for Trojan horses. Unlike external auditors, they look beyond financial risks and statements to consider wider issues such as the organisation’s reputation, growth, its impact on the environment and the way it treats its employees.

To be effective, the internal audit function must have suitably qualified, skilled and experienced people who can work in accordance with the Code of Ethics and applicable international standards.

The nature of internal auditing, its role within the organisation and the requirements for professional practice are contained within the International Professional Practices Framework (IPPF).

Internal auditors can be engaged in a range of activities such as:

  • Assessing the management of risk
  • Assisting management in the improvement of internal controls
  • Evaluating controls and risks
  • Analysing operations
  • Working with other assurance providers

In closing, as with compliance specialists, internal auditors help organisations to succeed. They achieve do this through a combination of assurance and consulting. The assurance part involves telling senior management how well the systems and processes designed to keep the organisation on track are working; the consulting side advises on improvements that can be made to those systems and processes.

Useful links

Chartered Institute of Internal Auditors

IIA Cayman Chapter

IIA Bermuda Chapter

Opportunities to work in Internal Audit offshore

We have frequent Internal Audit career openings on the Islands with companies and institutions in the Banking, Insurance, Trust & Corporate Services, Funds and Regulatory sectors of the offshore economies.

– View our Audit & Advisory Jobs –

If you want a job abroad, visit our jobs portal to see the latest vacancies. Our site includes a downloadable All You Need to Know guide which will tell you all you need to know about living and working offshore.