The Role of Internal Auditors in Union Bank of Nigeria Limited

Internal auditors play a vital role in Union Bank of Nigeria Limited (UBN) and other organizations. They are responsible for providing independent assurance to the board of directors and senior management that the bank’s internal control system is effective in managing risks and that the bank’s financial statements are fairly presented.

Internal auditors conduct a variety of audits, including financial audits, operational audits, and compliance audits. Financial audits focus on the accuracy and reliability of the bank’s financial statements. Operational audits assess the effectiveness and efficiency of the bank’s operations. Compliance audits assess the bank’s compliance with applicable laws and regulations.

Internal auditors work independently of all other departments within the bank and report directly to the managing director or chief executive. This ensures that they can objectively assess the bank’s operations and risks.

Internal auditors play a key role in helping UBN to achieve its strategic objectives. By providing independent assurance on the bank’s internal control system and financial statements, internal auditors help to improve the bank’s risk management and governance practices.

Specific Roles of Internal Auditors in UBN

• Provide independent assurance on the bank’s internal control system: Internal auditors assess the effectiveness of the bank’s internal control system in managing risks. This includes identifying and assessing risks, implementing risk mitigation strategies, and monitoring the effectiveness of those strategies. Internal auditors also assess the bank’s compliance with applicable laws and regulations.
• Provide independent assurance on the bank’s financial statements: Internal auditors review the bank’s financial statements to assess whether they are fairly presented and prepared in accordance with applicable accounting standards.
• Identify and assess risks: Internal auditors identify and assess the risks facing the bank. This includes both financial and operational risks. Internal auditors also assess the bank’s risk management practices to ensure that they are effective in mitigating risks.
• Make recommendations to improve the bank’s internal control system and risk management practices: Based on their findings, internal auditors make recommendations to management on how to improve the bank’s internal control system and risk management practices.
• Assist management in performing periodic accounting and administrative procedures: Internal auditors assist management in performing periodic accounting and administrative procedures, such as inventory counts and month-end closings. This helps to ensure that these procedures are performed accurately and efficiently.
• Identify possible means of conserving resources: Internal auditors identify possible means of conserving resources, such as reducing waste and improving efficiency. This helps the bank to save money and improve its profitability.
• Improve the efficiency and economy of operations and use of resources: Internal auditors work with management to improve the efficiency and economy of operations and use of resources. This helps the bank to reduce costs and improve its profitability.

Benefits of Internal Audit in UBN

There are many benefits to having an effective internal audit function in UBN. Some of the key benefits include:

• Improved risk management: Internal auditors help the bank to improve its risk management practices by identifying and assessing risks, implementing risk mitigation strategies, and monitoring the effectiveness of those strategies.
• Enhanced governance: Internal auditors provide independent assurance to the board of directors and senior management on the effectiveness of the bank’s internal control system and the reliability of its financial statements. This helps to improve the bank’s governance practices.
• Reduced costs: Internal auditors can help the bank to reduce costs by identifying and recommending ways to improve the efficiency and economy of operations and use of resources.
• Increased shareholder confidence: An effective internal audit function can help to increase shareholder confidence by providing assurance that the bank is well-managed and that its financial statements are reliable.

Conclusion

Internal auditors play a vital role in UBN and other organizations. They help to improve the bank’s risk management and governance practices, reduce costs, and increase shareholder confidence.

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Additional Information

In addition to the specific roles and benefits mentioned above, internal auditors in UBN also play a role in the following areas:

• Fraud detection and prevention: Internal auditors work to detect and prevent fraud within the bank. They do this by assessing the bank’s fraud risks and recommending ways to mitigate those risks.
• Regulatory compliance: Internal auditors help the bank to comply with applicable laws and regulations. They do this by assessing the bank’s compliance risks and recommending ways to mitigate those risks.
• Information security: Internal auditors help the bank to protect its information systems and data from unauthorized access, use, disclosure, disruption, modification, or destruction. They do this by assessing the bank’s information security risks and recommending ways to mitigate those risks.

Internal auditors in UBN are highly skilled and experienced professionals. They typically have a bachelor’s degree in accounting or a related field, and many of them also have professional certifications, such as the Certified Internal Auditor (CIA) certification.