Please enable JavaScript.
Coggle requires JavaScript to display documents.
NATURE OF INTERNAL AUDIT WORK (Advantages of internal control (Achieve its…
NATURE OF INTERNAL AUDIT WORK
Definition of internal control
Definition of control under COSO
Definition of Control under IPPF
Definition of control under SAICA
The Control environment
The organisation structure(hierarchy)Factors to consider when evaluating the organisational structure
The organisational structure should be suitable for the type of organisation
Grouping
The philosophy and style of senior management
It consist of four element which are planning ,organisation ,directing and controlling
Numerous factor which might influence the risk with reference to the philosophy and operating style of management (including)
High turnover of management especially accounting personeel
An unduly aggressive approach of management to financial reporting
management having poor reputation in the business community
management placing excessive emphasis on obtaining profit forecasts
Method used to communicate tasks and responsibilities to personeel
Organisational policy
Assignment of responsibility and delegation of authority to deal with such matters as organisational goals and objectives,operating functions and regulatory requirement
Job descriptions
Computer system documentation
HUMAN RESOURCES MANAGEMENT
Personeel scheduling
Regular rotation of duties, within limits
The appointment and evaluation of personeel
Career path possibilities
The formalisation
The objectives of internal control according to COSO framework and IIA standard 2130.A1
Reporting objectives
Compliance objectives
Operational objectives
COSO framework as published in 2013
Organisation's strategic plan
Mission
Strategic objectives
Governance-Risk-Control professional guidance
Management of the internal audit activity (2000)
Nature of the work performed by the internal audit activity(2100)
The perfomance Standard describe the nature of internal audit services.
Internal Audit process (2200-2600)
GRC Framework-Guidanceis
COSO II
COSO III
King Report
Control activities
Types of internal control actives
segregation of duties
Proper authorisation of transaction and activities
safeguarding of assets and information
Independent checks
Classification of internal control activities
Corrective control
Preventive control
Detective control
Responsibility for internal control
The function of the external auditor
The for the internal auditor
The responsibility of management
Advantages of internal control
Achieve its goals for profitability and outp6
Prevent resources losses
Promote reliable financial reporting
Ensure compliance with legislation and regulations
Prevent reputation of the organisation
Limitations of internal control
Ensure an organisation's success
Ensure the reliable of financial reporting and compliance with legislation and regulations
CHAPTER 5 NATURE OF INTERNAL AUDIT WORK