Internal auditing is the practice of advising organizations regarding how better to achieve their objectives.
Your organizations management are responsible for the internal control of your entity. Managers are the ones who establish policies and procedures to help the organization achieve specific objectives in each of these categories. Our internal audit team would perform audits to evaluate whether the policies and procedures in place are designed and operating effectively and provide recommendations for improvement.
The actual scope of an internal audit can be quite broad however management can determine the scope of such reviews to concentrate on what they believe to be particularly problematic areas, generally the topics may encompass such issues as efficiency of operations, financial reporting reliability, deterring & investigating fraud, safeguarding the company’s assets and ensuring the organization’s policies & procedures are compliant with all government agencies laws & regulations.
Procedures & Engagement for Audit
- Establish and communicate the scope and objectives for the audit to appropriate management.
- Develop an understanding if the business is under review. This includes objectives, measurements and key transaction types. This involves review of documents and interviews. Flowcharts and narratives may be created if required.
- Identify control procedures used to ensure each key transaction type is properly controlled and monitored.
- Develop and execute a risk-based sampling and testing approach to determine whether the most important controls are operating as intended.
Report problems identified and devise action plans with management to address the problems raised.