Internal Audit as an Effective Internal Control System at Ongc

17652 WordsSep 19, 200971 Pages
CONTENTS 1. EXECUTIVE SUMMARY 2. INTRODUCTION     Literature Review Global Oil & Gas Industry Overview Indian Oil & Gas Industry Overview Company Overview (ONGC) 2 4 6 6 20 23 24 26 28 38 39 40 41 3. INTERNAL CONTROL & INTERNAL AUDIT  Internal Control  Internal Audit  Standards on Internal Audit 4. PROJECT PROFILE  Objectives  Research Methodology 5. LEARNINGS & OBSERVATIONS  Learnings        Audit Scope & Coverage Organisation Structure of IA Department Audit planning & process Audit approach & methodology Life cycle of an audit Performance evaluation Quality systems 42 43 44 46 47 50 52 54 58 59 61 62  Observations  Recommendations  Learning outcome 6. REFERENCES 7. ANNEXURE Page 1 EXECUTIVE SUMMARY…show more content…
After several years of seeing more money pumped into internal audit in response to the requirements of Sarbanes-Oxley, management is now looking to trim the budget. Internal audit 's oversight went far beyond SOX, but because SOX dominated corporate priorities in recent years, audit teams were staffed accordingly with many junior, "box-checking" resources. But now, many audit teams are finding themselves exposed, lacking the skills required to deal with contemporary business risks. The number and variety of business risks and related controls that IA needs to assess, monitor and report on has grown exponentially in just a few years. Risks related to the supply chain, treasury and financial instruments, fraud, systems, privacy, emerging markets, strained economic conditions, corporate responsibility, regulation, subprime exposure and liquidity are just some of the new, niche risks which have emerged and can require highly specialized auditing skills. At the same time, more and more companies are expecting their IA teams to create value rather than just preserve it. With pressure mounting to deliver more while paying less and to come to terms with skills gaps, IA is undoubtedly at a crossroads in its evolution. Having the capability to deal with today 's business risks requires a significant level of investment in skilled resources, methods, training, career paths and technical infrastructure. Maintaining that capability requires a sustained level of

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