Why internal audits should be declared essential services during COVID-19

The issue of internal audits not being declared essential services during the COVID-19 pandemic has sparked concerns within the industry. James J. Gourrah, Chairperson of the Institute of Internal Auditors South Africa, emphasized the importance of internal audits in ensuring corporate governance and proper accounting processes are followed. In a recent interview with CNBC Africa, Gourrah highlighted the critical role internal audits play in providing confidence, trust, and managing risks during these unprecedented times. The industry is advocating for internal audits to be recognized as essential services to safeguard South Africa’s fiscal response to the pandemic from corruption and irregular expenditure. Gourrah pointed out that internal audits are essential in instilling confidence in markets, which is crucial for economic stability. As South Africa navigates the challenges presented by the COVID-19 crisis, including the implementation of the R500 billion economic stimulus plan, food distribution programs, and procurement systems, the role of internal audits becomes even more significant. Gourrah stressed that internal audits offer insights into managing risks effectively, ensuring that decisions are made with the necessary information and oversight. One key concern raised by Gourrah was the potential for unethical behavior and corruption to thrive during times of crisis. By involving internal audits in the decision-making processes and governance structures, organizations can mitigate the risks associated with fraudulent activities and misconduct. Gourrah highlighted the need for internal audits to be included across all sectors, not just in government and the public sector, emphasizing their role in upholding ethical standards and accountability. The response from stakeholders to the industry’s call for internal audits to be declared essential services has been largely positive. Gourrah mentioned that feedback from both the public and private sectors indicates a recognition of the importance of internal audits in managing risks and ensuring compliance. National Treasury has also acknowledged the importance of internal audits in emergency procurement processes during the state of disaster, further underlining the value of their role. As South Africa strives to navigate the challenges posed by the COVID-19 pandemic and its economic ramifications, the role of internal audits in safeguarding financial integrity and transparency cannot be understated. By recognizing internal audits as essential services, the country can strengthen its financial governance frameworks and protect against potential corruption and irregularities that may arise during these trying times. Upholding the principles of accountability and ethical conduct through robust internal audit practices is essential for preserving public trust and confidence in the midst of crisis.