An effective Internal Audit function is a cornerstone of sound corporate governance, robust risk management, and regulatory compliance. Boards and Audit Committees are increasingly expected to demonstrate that their Internal Audit function remains independent, effective, and aligned with globally accepted professional standards.
Regulatory Drivers
For CBN-regulated financial institutions, an annual independent external quality assessment of the Internal Audit function is a regulatory requirement, with the assessment report submitted to the Central Bank of Nigeria.
Beyond banking, the Nigerian Code of Corporate Governance (NCCG) 2018, together with governance expectations from NAICOM, PenCom, and the SEC, requires Boards to periodically evaluate the effectiveness and independence of their Internal Audit function.
Why It Matters: A Worked Example
Consider ABC Bank Limited, a CBN-regulated institution whose last Internal Audit assessment was conducted in 2019, before the Global Internal Audit Standards took effect in January 2024. Without a fresh independent assessment, the Board cannot demonstrate that Internal Audit conforms to the current Standards, exposing the institution to adverse findings at the next CBN examination and weakening the Audit Committee's assurance over risk and control matters, the very gap an independent quality assessment is designed to close.
Our Approach
At PML Professional Services, we provide independent, evidence-based Internal Audit Quality Assessments that benchmark your Internal Audit function against the Global Internal Audit Standards. Our assessments: