Consulting services provided by Maltese internal auditors : an evaluation

Abstract

Purpose: The change in the definition of internal auditing reflects an internal audit profession which has been changing dramatically in the last few years and which is incorporating consulting services as part of its activities. This study sets out to establish the nature and scope of the consulting role of internal auditors and evaluate the perceptions of the respondents with regard to the implications of the consulting role on the internal auditors' objectivity and independence. Design: In reaching the objectives of this study, personal semi-structured interviews were conducted with thirty respondents including internal audit executives, consulting clients and external auditors. Findings: From the study it emerges that the majority of the internal audit departments are involved in consulting. The most popular consulting engagements are risk consulting, process/system development and review of existing processes in order to make them more efficient. The main purpose of consulting is to provide a service to management, with the objective of increasing added value, without being involved in implementation. Regarding the implications of the consulting role on the internal auditors' independence and objectivity, different views emerged from the three groups of respondents. Value: Consulting is only a secondary role of local internal auditors with more resources being allocated to traditional audit work. Yet, facts indicate that the consulting role will grow in importance. This study includes a number of recommendations with the aim of improving the provision of consulting services.