Internal Audit Marginalization Threatens Business Integrity

Stakeholders at an internal audit conference in Lagos warned that the marginalization of internal audit functions could severely impact business organizations. Esther Oluku, a representative from the Nigerian Institute of Management, highlighted that neglecting internal audits can lead to corporate failures, referencing the €1.9 billion scandal involving Wirecard, which concealed €1.2 billion, and Toshiba's financial discrepancies.

Festu Ogunmokun from West African Portland Cement Company (WAPCO) noted that the cost of ignoring internal audits could reach approximately ₦60 billion in market capitalization. Doyin Owolabi, a former president of the Institute of Chartered Accountants of Nigeria (ICAN), stressed that internal audits should not only detect irregularities but also prevent them, acting as gatekeepers to ensure financial statements reflect economic realities.

Dr. Iheanyi Anyaghara emphasized the need for independent assurance in audit practices to maintain credibility and trust.