Internal Audit in Uganda: Shifting from Compliance to Value Creation

Internal Audit, often perceived as a function focused on controls and compliance, is evolving globally. The International Internal Audit Standards now define the profession’s role as strengthening an organization’s ability to create, protect, and sustain value through assurance, advice, insight, and foresight. This redefines Internal Audit from a backward-looking control mechanism to a forward-looking strategic enabler.

Recent discussions during Internal Audit Awareness Month highlight a critical question for Ugandan auditors: are they merely identifying non-compliance, or are they actively contributing to business value? While traditional audits of payroll and accounts payable remain important, the changing business landscape, marked by cyber threats, digital fraud, and AI, demands a broader approach.

Examples from the field illustrate this shift. One audit uncovered Shs120 billion in uncollected revenue, prompting immediate management action and directly contributing to organizational value. In contrast, an audit focused on a minor policy deviation, even if technically correct, offered less strategic impact. Both met professional standards, but only one demonstrably moved the business forward.

To be more impactful, Internal Audit plans should prioritize understanding the value each audit will create or protect. Opportunities increasingly lie in emerging areas such as cybersecurity, revenue assurance, data governance, and financial crime prevention. Continuous professional development is crucial for auditors to gain expertise in these complex domains and maintain credibility.

Furthermore, auditors must foster meaningful engagement with management. Independence does not necessitate isolation. A deeper understanding of strategic priorities and emerging risks allows audit functions to provide more relevant assurance and advice. The future relevance of Internal Audit will be measured not by the number of findings, but by its ability to help organizations navigate uncertainty, build resilience, and achieve superior outcomes.

This article was adapted from reporting by Dickson Agaba Kamukama, chief internal auditor at Absa Bank.