Auditing as a profession as evolved drastically over decades and as time has passed auditing

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Auditing as a profession as evolved drastically over decades and as time has passed auditing activities has expanded from performing specific assurance activities for management, to assisting and advising management with their specific business activities. The Institute of Internal Auditors define internal auditing as ‘”…an independent, objective assurance and consulting activity designed to add value and improve an organisation's operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.’ (Institute of Internal Auditors, 2013) Through this definition it can be explained why auditors can be…show more content…
The King Committee laid down the fact that a company should have an audit committee and that both the chief internal auditor and the external auditor should have unlimited access to the audit committee.

As major South African developments look place in 1994, the King Committee recognised that a balance between accountability, freedom to manage and the interests of different stakeholders needed to be achieved. Due to the constant changes and struggles with domestic changes, black economic empowerment, fraud, AIDS and poverty, there is an ongoing search for the optimal governance for business in South Africa.

2.2 International Professional Practices Framework (Standards)

The King Report lays out the importance of internal auditors in the area of governance. Auditors need to be provided with guidance for the conduct of internal auditing and this guidance is provided by through the International Standards for the Professional Practice of Internal Auditing. The standards provide basic principles that represent the practice of internal auditing, provide a framework for performing audit activities, establish the basis for the evaluation of internal audit performance and lastly serve to improve organisational processes and operations. The standards are divided into attribute standards which describe the characteristics of the Internal Audit Activity and the Internal Auditor and performance standards which describe the Internal Audit Services. Standard 2100 refers to

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