Photo: Panel members at the Institute of Internal Auditors breakfast panel discussion forum are from left Ms Arlene-Lynn Volmink, Chief Executive Officer at the Institute of Internal Auditors South Africa, Ms Masechaba Sesing, Head of Department at the Free State Provincial Treasury, Mr Gerhard Geldenhuys, Director/ Partner: Risk Assurance and forensic investigation services at PricewaterhouseCoopers and Mr Albert Ntsala, Chief Audit Executive from Mangaung Metropolitan Municipality.

The Institute of Internal Auditors South Africa (IIA SA) is part of an international network representing the interests of Internal Auditors worldwide. The Institute serves internal auditors in South Africa by offering technical guidance, professional training programs, certification programs, continuing professional development opportunities, conferences, and networking opportunities.

Internal audits about fraud provide assurance, identify red flags, evaluate controls, collaborate with management, and, in some cases, participate in investigations. By fulfilling these responsibilities, internal auditors contribute to preventing and detecting fraud within an organisation.

On 04 August 2023, the Central University of Technology hosted the Institute of Internal Auditors South Africa, where a panel discussion took place under the theme: the role of internal audit in fraud matters.

The panel was made up of Ms Arlene-Lynn Volmink, Chief Executive Officer at the Institute of Internal Auditors South Africa, Mr Gerhard Geldenhuys, Director/ Partner: Risk Assurance and forensic investigation services at PricewaterhouseCoopers and Ms Masechaba Sesing, Head of Department at the Free State Provincial Treasurywho tackled issues relating to understanding the role that internal auditors play in fraud matters.

Mr Geldenhuys said that fraud is not just fraud but also includes theft, corruption, and dishonesty. “Fraud is the family name of all the horrible things chowing our country. From an internal auditor’s perspective, you need to understand what you are dealing with, understand your audience, and the responsibility that you must carry on. You also need to consider fraud risk and the possibility of fraud in your learning, execution, and reporting.”

In her view as a manager, Ms Sesing highlighted that it is not the primary role of Internal Auditors to look for fraud, but they must instead be aware of red flags. She said Internal Auditors must be removed from the departments, centralised, and report directly to the legislature. “As an internal auditor about fraud, your professional scepticism should be high, and you should be aware of the environment and people’s lifestyles,” she said.

Ms Volmink said that internal audit is not responsible for detecting all fraud. However, by assessing the organisation's fraud risk, designing and implementing fraud prevention and detection controls, and investigating suspected fraud, internal audits can help to mitigate the organisation's fraud risk and protect its assets. We are here to interact, share knowledge, and exchange tips and tools of best practices. I hope that once we have the answers as professionals, we can return the lessons learnt to our organisations and impact our management and others.”

Uploaded: 17 August 2023