Internal Auditing As An Important Part Of Auditing Supervision System

Scoping and Evaluation Judgments in the Audit of Internal Control over Financial Reporting 12.1 EyeMax Corporation . . Evaluation of Audit Differences

Due to increasing economic and financial growth, many types of audit have been incorporated throughout the development process of internal activities. Audits can be performed manually or they can incorporate technology. According to Hunton and

Internal controls are regulated by the Sarbanes-Oxley Act of 2002. This act assigns responsibility for a company’s internal controls on its executives and directors (Kiesco et.al., 2008). This assignment of responsibility forces the company to use effective internal controls by making a certain group responsible. The act also established the Public Company Accounting Oversight Board which regulates the activities of auditors. Together, assigning responsibility and defining the standards of auditors, the Sarbanes-Oxley Act of 2002 helps to safeguard a company’s investments, assets and future successes by discouraging fraud and theft.

Auditors usually use the internal control to assess the adequacy of the accounting system as a basis for preparing the accounts and consider factors that will affect the risk of misstatement. There are five components of internal control such as control environment, risk assessment, controlling activities, information and communication and monitoring

a. The auditors should review the client's planning of the physical inventory and make suggestions for improvement.

Section 404. Management assessment of internal control: This section needs every annual report of a in public listed company to contain internal control report stating management’s responsibility to establish and maintain an adequate system of internal control financial reporting similarly as an assessment of the effectiveness of internal control structure and procedures. Auditors audit the financial statements of the company must issue a consulting report regarding the effectiveness of the company internal

Internal Audit solution is design to help companies in several data and audit related programme . It give help to all kind of audit like internal audit , operational audit etc . Steps for audit programme is generally start from

The internal audit has adopted by the Petrol Malaysia Refining & Marketing Bhd to undertake the independent, regular, and systematic audit reviews of the company’s internal control system. Internal control is a process designed to provide reasonable assurance that the company’s system will be achieved effectively. The internal audit process consists of the audit of the selected units and operations based on the risk management. Other than that, it also covers the periodic and annual review with the Board Audit & Risk Management Committee of audit results and audit plans for the subsequent year. Board Audit & Risk Management Committee has the function to approve the

Audit and Internal Control is a way that is looked upon internally and externally to see if the correct functions and process are being done to make sure that informaiton that is given is unbaisis and in a correct manner. Auditors ideally need to get all

An internal auditor is an employee who provides independent evaluations of the company’s financial and operational business activities as well as the operational efficiencies. An external auditor examines the business transactions and financial records for a company that does not employ them.

Internal auditing is an independent objective assurance and consulting acitivity designed to add value and improve an organizations operations.

Internal auditors cannot effectively provide an analysis on the company’s internal dealings as they are part of the company. External auditors, however, can observe these processes from the outside and then determine where the funds of the company and whether the dealings adhere to the regulations. Using external auditors in a company prevents conflict of interest from happening. Conflict of interest is a situation where an individual or organization has multiple interests and of those multiple interests, one could possible corrupt the motivation for an act on the other when the auditor has any kind of beneficial interest in their client’s performance. In other circumstances, there is also the threat of familiarity where auditors become

Stock must be in orders to an approved plan once the purchase orders have been displayed they must be authorized. Stock may be released on a requisition delivery note and is to be received in quality check to specification. The goods received note is to be documented recording the transaction audit trail produced and input checked.

According to the Institute of Internal Auditors (IIA), (2011), the internal auditing is a team of consultants, a department and a division or other practitioner which independent, have objective assurance and conduct a consulting activity which is designed to add value and improve the organization operations. The internal auditor can help an organization in achieving its objectives by bringing a discipline and systematic approach in order to improve and evaluate the effectiveness of risk management, control and governance process.

The role of internal audit is to provide independent declaration that an organization’s threatadministration, governance and internal control processes are functioning effectively. Internal auditors deal with concerns that are essentially important to the existence and success of any organization. Unlike external auditors, they aspect beyond financial possibilities and statements to reflect wider problems such as the organization’s reputation, development, its power on the location and the approach it treats its organizations.In summary, internal accountantssupport organizations to thrive.