Pre-audits

[Emmanuel Cheluget Lelgo]

Is it really proper for the internal audit to carry out pre-audits? doesn't this make the function part of the business transactions and therefore liable?

[Ogutu Emmanuel Omondi]

While pre-audits help, it worries because it impairs the objectivity of internal audit. It also consumes a lot of audit time such that internal audit cannot meet its plan hence affecting the overall performance of internal audit. Risk based audit is the best audit methodology.

[Maranga Eric Nyangute]

There is normally a misconception in so far as independence is concerned between external and internal auditors. By virtue of internal auditors being employees of the same  organisation, its seen in the eyes of the outsiders that they may not be fully independent.

The independence of internal auditors is derived from the organisational structure and in particular, the reporting lines to the CEO and that of the board respectively. In addition, i would really wish to point out that as professionals, be it in external/internal audit, our individual objectivity goes along way in strenghtening the independence of our work.
 
Pre-audits on the other would reallynot be the best way forward for internal auditors because it bring about duplications of efforts. Instead, both parties should coordinated there work to ensure that audit coverage is adequate and that duplicate efforts are minimized where possible.

After all, isn't about value adding to the company and stakeholders at large! 

[Mien Henry Dolla]

I think pre audit is a critical management aspect to double check for compliance. I think pre audits should be encouraged.

However, i am of the opinion that they should not be undertaken by Internal Audit staff. The best way out is to have compliance officers (who essentially are auditors or have audit background) as part of the Finance division. This gives breathing soace for Internal Audit to comply with the standards as required.

By avoiding pre audits the internal auditor is better able to act as a change agent rather than as part of Management operations. It will also relieve the internal auditor from a lot of conflict with Management. This is because the issue of supremacy arises between Head of Internal Audit and Management/CEO.

The rest is obvious.

Regards

[Okoba Fredrick Bwire]

To be borne in mind should be the question of value addition? Does pre- audits, looked in the context of the organization as whole add value? This being a subjective topic it should elicit several answers as varied as the organizations.

All in all, as a the internal auditor strives to justify his/her usefulness to his/her employer, pre-audits present  proactive avenues in which losses can be prevented at the earliest and the necessary corrective controls incorporated  before the external audits or rather post-audits.

[Tulula Joseph Masambu]

For objectivity and independence pre-audits should not be encouraged. However, the decision of whether pre-audit is adopted or not lies wholly on the mindset of the Chief Excutive of an organization. This is so for various reasons that are best known by the CEO in question. Some perceive that for adequate support of decision making in terms of payments Internal Audit should participate through pre-audits, others perceive otherwise.

Pre-audits or not depends on the effectiveness and effeciency of the Internal Audit Department. Factors to examine include the placement of Internal Audit on the overall structure, the qualification of the internal audit team, the organization's environment (internal), culture among others.

For value addition pre-audit should not be used by internal audit.