Internal auditors in the country have been challenged to master corruption indicators in order to protect and enhance value in organisations.
The call was made during the signing of a Memorandum of Understanding between the Institute of Internal Auditors in Malawi and the Anti-Corruption Bureau (ACB) which will see the two collaborating to fight corruption in organisations.
IIAM president Paul Nyirenda said internal auditors are supposed to provide risk based and objective assurance, advice and insight to organisations.
He said it is imperative that internal auditors must be alert to indicators of corruption when carrying out their work.
“Auditing of corruption is a new area such that the traditional auditing techniques cannot fully address as usually there are no trails in the records when committing corruption. It is necessary that internal auditors must explore modern techniques that can help to prevent or detect corruption,” said Nyirenda.
He further said both ACB and internal auditors can be effective in their work if they work hand in hand.
“Internal auditors can benefit in terms of expertise from ACB when it comes to auditing corruption especially in identifying indicators of corruption. The auditors can also provide technical knowledge to ACB on how the control environment is like in a particular institution during an investigation,” he said.
ACB publicist Egrita Ndala said auditors rely on documentary evidence but sometimes a malpractice would happen without leaving a trail.
She said this is the issue that needs to be looked at by the auditors.
“Their role is to help strengthen the internal controls within an institution. If internal auditing is not tight enough people could still engage in corruption.
“So these are the areas whereby internal auditors are supposed to be cautious about and be attentive to report such malpractices,” said Ndala.
She further said the MoU has come about after several discussions and will help a lot as auditors are the people that uncover certain malpractices in organisations in terms of fraud.
“The auditors will be able to share with us where they are suspicious that corruption or fraud is taking place and as ACB we will be able to come in and investigate,” she said.