Thedepartment seeks to provide useful guidance to boards and individual directors that wish to make effective use of the internal audit function, particularly in respect of gaining assurance concerning the adequacy of an organization’s risk management and internal control systems.
To ensure the effectiveness of an organization’s risk management framework, the board and senior management need to be able to rely on adequate line functions - including monitoring and assurance functions - within the organization. In order to conceptualize these line functions of periodic and surprise audit & physical verification of stock, warehouse structure, security, quality condition, warehouse controls, conducted pest management treatments, commodity health and warehousing cleaning and hygiene.
The main line of defense consists of activities covered by several components of internal controls (compliance, risk management, quality and others). This line of defense monitors and facilitates the implementation of effective risk management practices by operational management and assists the risk owners in reporting adequate risk-related information up and down the organization.