Internal Audit and Value Creation in a Commercial Bank

The internal audit activity within leading organizations is moving well beyond its traditional role and becoming increasingly involved in top-level decision making, protecting the organization against risk, improving control systems, and enhancing corporate governance practices. This study provides evidence about the extent to which the internal audit activity has created value in Union Bank of Cameroon Plc. The study examined the extent of value creation in four key areas: corporate governance, risk management, internal control, and other internal audit functions such as assurance and consulting services. It addressed the circumstances under which internal audit at the corporate level can help to maximize value. The research develops the foundations for a model that would allow banks to identify those internal audit variables that really add value. The greatest value is provided through the internal control variable, followed by risk management, while the least value is provided through the corporate governance variable.