Banks: Durosinmi-Etti wants independence of internal audit

The Group Managing Director and Chief Executive Officer, Skye Bank Plc, Mr. Kehinde Durosinmi-Etti, has advocated independence of the internal audit function in banks by ensuring that the head of the department reports to the chairman and chief executive officer.According to him, this will embolden the internal auditors to carry out their jobs without fear of persecution.Durosinmi-Etti expressed this view in a paper titled Preventing Another Banking Crisis: What Role for the Internal Auditor which he presented at the monthly meeting of the Committee of Chief Inspectors of Banks in Nigeria hosted by Skye Bank.The Skye Bank boss maintained that faithful implementation of the reporting line would help ensure strict independence of the auditors in the discharge of their responsibilities.He further advised that the audit committee of banks, comprising mainly non- executive directors, should be responsible for reviewing and approving the internal audit work plans, as well as for ensuring that appropriate actions were taken by management on issues raised.In order to prevent another crisis in the financial sector, Durosinmi-Etti stressed the need for aligning the audit function with stakeholders expectations by assuring the board and the audit committee on the effectiveness of risk management practices and on the adequacy of financial and operational controls as well as serving as their ears and eyes.He said, Auditors should provide independent and objective feedback on areas of interest as well as point out company-wide potential risks and also provide insights on cost saving opportunities and identify key risks.Owing to the significance of evolving issues in risk management, technology, operations, amongst others, practitioners should improve on the platforms for shared experiences among banks. This will enable faster diffusion of latest developments and thus provide internal auditors with relevant tools to manage such emerging risks.
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