Research Paper On Internal Auditing

2- Staffing and Training:-The internal audit team should be appropriately managed in terms of numbers, post, qualifications and experience, and should have regard to its responsibilities and objectives. The internal auditor should get properly training to fulfill all his responsibilities. The effectiveness of internal audit depends upon the

Internal audit- In-house assessment to ensure that all policies and external standards are followed, implemented, and operating effectively.

Auditors have the responsibilities as well as management to report internal controls. The auditors must examine closely management’s claim of effectiveness and also physically test the controls. After the examination, the auditors should express their opinion and any recommendations to fix any internal control weaknesses.

1) Internal Auditors are expected to add value to the organization through improved operational effectiveness. In addition, their responsibilities include all the following except:

When auditing a public company, the auditor must form an opinion on the effectiveness of internal control

When testing of internal controls indicates that there may be significant deficiencies, then the auditor

The engagement in this type of activities will provide the IAD with the responsibilities to fulfill certain degree of assurance from an independent and objective position. Although, the consulting activity could be the main focus for the IAD in this organization, the assurance portion could be a source of reliability and confidence for the management team, the board, and the employees in general regarding the work performed by the different departments. Another, recommendation will be to include in the charter the complete, unrestricted, and free access to any records and physical properties by the internal auditor while working in an engagement. This freedom will facilitate immensely the work performed by the internal auditors allowing them to have all the information required to accomplish their assurance and consulting objectives. Moreover, the IAD charter should include system to monitor the disposition of results communicated to management and a system to resolve risk conflicts between the chief audit executive and the senior management. The addition of these two crucial parts of the internal audit activity in the charter will facilitate the achievement of quick results and a more effective and efficient way to resolve significant issues that may arise in the

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

All internal audits are announced. Only external audits from outside agencies are scheduled without the prior notification of all parties involved in the audit. External audits are usually to uncover a legal or ethical violation, whereas internal audits primary purpose is to prevent such. Department heads, supervisors and all employees involved are usually given written notification prior to the conduction of an internal audit.

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

The auditor is a person who performs an audit, trained with knowledge needed to evaluate the effectiveness of a company. The auditor must meet for the proper performance of their profession, features such as solid general culture, technical knowledge, constantly updated, ability to work in multidisciplinary team, creativity, independence, inclusive mentality and vision, objectivity, accountability, among others. In addition to this, this professional must have a comprehensive and progressive training.

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.

Taking into consideration the scope/objectives and responsibilities of the internal Audit functions, to what extent do you feel that Internal Audit meets expectations?