Governance Audit
This is an impartial review of an organization with the goal of providing an opinion on the appropriateness and efficacy of the organization’s policies, systems, and practices. It’s a value-added assurance that uses a methodical, disciplined approach to analyze and enhance the efficacy of risk management, control, and governance systems.
Advantages of Governance Audit
Stakeholders can have some comfort about an organization’s governance by conducting a governance audit. Some of the advantages of a Governance audit are as follows:
- Recognition as a good corporate citizen for the organization
- Identifying operational and functional inconsistencies
- Promotion of high compliance standards
- Improvement of communication with stakeholders.
- Improving the working relationship between management and the Board of Directors.
- Improvement of transparency and accountability.
- Image and competitiveness of the organization are promoted.
Governance Auditing Principles
When conducting a governance audit, keep the following in mind:
I. Adherence to ethical standards
The Governance auditor must act with integrity and objectivity, avoiding bias in his decisions. The information gathered should be handled with caution.
II. Adherence to quality control standards
The Governance auditor is responsible for ensuring the quality of each Governance audit assignment.
III. Observance of governance norms and standards
The auditor should follow the concepts and processes outlined in the Governance standards and guidelines throughout the audit.
IV. Skepticism in the Workplace
The auditor must design and conduct the Governance audit with a professional skepticism, acknowledging the risk of receiving governance information that is substantially defective.
V. Ascertain a fair level of assurance
The auditor must have reasonable certainty that the management representations made are not materially false.
HOW WE CAN HELP
As Imperial Registrars, we shall be pleased to assist you and your organization by conducting a thorough governance audit to ensure it’s compliant with all the laws and regulations in Kenya.
