C. P. Mansoor S. Ahmed M. Com, PGDBA Internal Audit
Internal Audit • Not confined to Independent Audit • Systematic Examination of • Records • Procedures • Systems • Operations
Definition • “Internal Auditing is an independent and an objective assurance and consulting activity designed to add value and improve an organization’s operation. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control & governance process.” IIA USA
Scope of Internal Audit • Risk Management & Control • Reliability & Integrity of Financial & Operational Information • Compliance with Laws, Regulations & Contracts • Safeguarding the Assets • Effectiveness & Efficiency of Operations • Accomplishments of Objectives & Goals for operation • Governance • Promoting Values & Ethics • Effective Organizational Performance Management & Accountability • Effectively Communicating Risk & Control Information to appropriate areas of organization • Effectively co-ordinating the activities of and communicating information among the board, external & internal auditor and management.
Need for Internal Auditing • Growth • Size • Operation • Location • Specialists • Records • Procedures • Systems • Operations
Operation of INTERNAL AUDIT • Purpose, Authority and Responsibility • Planning • Policies and Procedures • Personal Management and Development • External Auditors • Quality Assurance
Professional Proficiency of Internal Audit Department • Staffing • Knowledge, Skills and Disciplines • Supervision
Performing Audit Work • Planning the Audit • Examining & Evaluating Information • Communication Results • Appropriate Follow-up • Preparation of Audit Reports • Discussion and Follow-up of Reports • Reporting to Top Management