If one looks for a common definition of ‘value add’, it is the
difference between the price of a product or service and the cost of producing
it. The price is determined by what customers are willing to pay based on their
perceived value. Value is added or created in different ways.
Historically, Internal Audit is treated as a ‘cost centre’ rather than a
‘value-added process’. That’s because the definition of ‘value add’ can vary
from one firm / audit department to another. Mostly, it means improving the
business rather than just looking at compliance with policies and procedures.
But what is ‘value add’ to one practitioner may be different to another practitioner
of internal audit. So how does one establish what is ‘value add’? This will be
different in every case and also for each organisation. It has become common
for most practitioners to claim that they deliver ‘value-added’ internal audit
services, and for most stakeholders to speak of availing of ‘value-added’
internal audit services. The question, therefore, is ‘how does an internal
auditor or internal audit team / department add value’ in a particular
assignment or to the organisation?--->