Nature of internal audit activity (What do we do?) …
Nature of internal audit activity (What do we do?)
Provide assurance and consulting services on governance
The internal audit activity must assess and make appropriate recommendation to improve the organisation's governance processes
for making strategic and operational decisions,using a systematic disciplined approach.
Evaluate the implementation and effectiveness of the organisation's ethics related objectives and activities
This assesment is management's responsibility to conduct it should also initiate plans and actions to address risks identified .
Internal auditors must address risk consistent with the the engagement 's objectives and be alert to the exixtence of other risks .But they first have to take a look at the organisation's risk assesment
The internal audit activity must evaluate the effectiveness and contribute to the improvement of risk management process
Control activities , policies and procedures management put to ensure necessary actions are taken to address risks
Internal control activities
type of internal control activities
segregation of duties
proper authorisation of transaction and activities
Internal auditors should assess the adequacy and test for the effectiveness of all internal control activities
To achieve engagement objectives
to express an opinion on the adequacy and and effectiveness of controls in mitigating risks
Are control activities sufficient in preventing risks from occurring?
Test adherence to control activities(effectiveness)
1 more item...
1 more item...
Report on the inadequate control activities (control weakness)
Control, a process or an action taken
Internal audit activity must assist the organisation in maintaining effective controls by evaluating their effectiveness and efficiency and by promoting continuous improvement.
Control processes aim to support the organisation in the management of risks that threaten the achievement of its objectives
Management is responsible for implementing internal control ,but other parties may be involved
According to the COSO framework the primary objectives of internal controls are to ensure the objectives are met .These include operational, reporting and compliance objectives
This environment forms the foundation of the COSO control framework,provides the atmosphere in which people conduct their activities and carry out their control responsibilities in the organisation
This environment has a direct influence on the way activities are structured and objectives are established