The Compliance or Non-Compliance of the Internal Audit Department of Organisations with the Guidelines Specified by the Institute of Internal Auditors(IIA) A Case Study of Star Assurance Company Ltd.

Abstract: This study investigated the compliance or non-compliance of organisations with the critical elements required for setting up and operating an internal audit department as expected by the Institute of Internal Auditors UK. Compliance with the Standards is mandated by the IIA for every individual who provides internal audit services The researcher used a case study to explain the relationship between the variables: the case of the internal audit department of Star Assurance Company. The researcher employed both primary and secondary data, qualitative and quantitative research methods were also used to examine the internal audit department of Star Assurance Company Ltd (SAC). A number of data collection methods were combined to verify the reliability and accuracy of the data as suggested by Yin(2003). The study used a combination of data collection tools; a Survey, Questionnaire, Relevant Corporate Documents and Observation.. Literature, which was relevant to the subject matter, was reviewed to determine the benchmarks for an effective internal audit department. The study discussed the key functions of an internal audit department and the major objectives of internal audits. The study also discussed the independence, organizational status and objectivity required for effective performance of the department. The study also discussed the role of internal auditors and the critical elements required of every effective internal audit department. The challenges faced by internal audit departments were also discussed. Useful insights were taken from the Institute of Internal Auditors guidelines and also the Sarbanes Oxley Act. A brief profile of the company, which was studied, was included in the work. The research revealed that the company had made significant efforts to comply with the requirements of the I.I.A. I concluded by making recommendations, which the company could adopt to enable them, comply more extensively with the IIA guidelines