The Impact Of Internal Audit On Employee Behavior, Business Structure And Information Systems Essay

A company might decide to establish an internal audit department because an effective and independent internal audit department add values and improve effectiveness of risk management, control, and governance processes. It also helps prevent and detect the frauds.

An external audit examines the opportunities and threats that are available to it within its market and is also the study of other rivals that exist within its environment. It is important to study this when constructing a business plan as it is necessary to know what affects your rivals have on you and the environment you work in as well as the outside factors that affect your environment. An external audit will usually involve carrying out competition and market analysis.

The external audit focuses on identifying and evaluating trends and events beyond the control of a single firm. An external audit reveals essential opportunities and threats confronting an organization so that managers can formulate strategies to take advantage of the opportunities and avoid or reduce the impact of threats.

The company should hire it’s own internal auditor’s to ensure that the staff understand the company’s accounting procedures. This also helps the external auditor as it give the external auditor another viewpoint when assessing fraud risks. The internal auditors are apart of those charged with governance and that helps take the pressure off of the external auditor if a fraud should be discovered.

I-4) The role of the external auditor is to audit the financial statements of a company to check for accuracy and completeness and then issue their opinion on the reliability of the financial statements. The external auditor is independent of the firm that he or she is auditing so they report to their bosses in their company and issue reports for the public to see.

The internal auditing was important for each company management because it provides reporting for management and prevent the fraud inside the company. The internal auditors are the main reason that contributes to the success of the company. I will prepare the findings of both primary and secondary research. Thus, the discussion which including a detailed analysis of strengths and limitations of the project. After that, I will write the recommendations which resolve the problem of the company.

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

As part of this, external auditors often examine and evaluate internal controls used in managing the risks which could affect the financial accounts, to determine if they are working properly.

A business needs to analyse external areas such as Political, Economic issue, Social issue, Technological change, Competition, Culture, Ethics, Environment and Pressure group. External auditing is very important for all business. All business needs to PEST analyse for getting success in future.

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

Abstract: The main purpose of this study is to identify the reason behind the voluntary use of internal audit by public listed companies and to determine the factors that lead listed companies to have an IA function. There are number of reasons behind the implementation of IA function and it is strongly related with risk management, indication of effective internal controls and efficient corporate governance. This study is based on the work done by Jenny Goodwin-Stewart and Pamela Kent(2006). They examined and study the data from the annual reports of public listed companies. This paper also provides detailed information on the need of Internal Audit and examines the relationship between

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

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.

Unlike a statutory audit, an internal audit is purely optional. The directors or owners of a business may wish to undertake an internal audit to ensure accounting systems and controls are sufficiently designed and functioning appropriately. It also helps them to ensure that assets are duly protected and utilized for the benefit of investors and owners. Such audits maximise stakeholder investment through the implementation of effective internal controls.

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.