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Internal Audit (The Framework for Internal Audit Effectiveness : six…
Internal Audit
The Framework for Internal Audit Effectiveness : six elements
Core Principles
Demonstrates integrity
Provides risk-based assurance
Communicate Effectivelly
Standards
Recommmended Guidance
Practices for effectiveness
Optional
Useful
Standards are minimum requirements which are internationally applicable at organisational and individual levels
Purpose:
Provide Framework
Establish basis for evalution
Improve processes
Performance Standards
Nature of Internal Audit and processes
Provide quality measurement
Implementation standards
Assurance Services
Performance Standards
attributes Standards
Consulting Services
Definition of internal audit
an independent; objective; assurance and consulting activities
designed to add value and improve an organisations operations
it helps an organisation accomplish its objectives by bringing a systematic; discipline approach to
evaluate and improve the effectiveness of risk management; control and governance
Supplemental Guidance
Replaced old Practice Guides
Assist wide range
Enhance
Government risk and control issues
Roles and responsibilities of Internal Audit
Code of ethics
Code of ethics aims to promote ethical culture throughout the internal audit profession
Culture - the characteristics and knowledge of a particular religion, social habits
Ethics - moral principles that govern a persons behaviour or the conducting of an activity
Implementation guidance
Assist Internal Auditors
Promotes good practice
Replaced old practice advisor
Definition of Internal Auditing
Original Purpose: to provide assurance concerning historical activities
New definition: internal auditors are there to add value through facilitating change; giving advance and counsel
New definition that's leads to international Profession Practice Framework
Old definition focused mainly compliance testing
1997- To study needs of profession
Found that old definition was insufficient
New definition on 26 june 1999= current definition
New definition
Objective
Assurance Activity
Independent
Consulting Activity
Add value
Accomplish its objectives
Evaluate and Improve
Effectiveness
Risk Management
Control processes
Governance processes
History of Auditing and Internal Auditing
Internal Audit Activity
assistance to management
Assurance functions e.g Evaluation and processes
Consulting activity e.g advice to management
History of Auditing
Need for control activities
Audire "to hear" if event is true
To audit = to check; verify; scrutinise
Auditing= traditionally related to the verification of accounting records
History and Development
Need for improved governance within organisation
Factors contributing to development of internal auditing
Watch dog (assurance) replaced with Guide dog( consulting)
Institutes of Internal Auditors
Professional body
1942 established the institutes of internal auditors
Timeline with important events
Institutes of Internal Audit Today
Core purpose
Vission
Goals
Institutes of Internal Auditors (South Africa)
1964
Membership
Objectives
Roles of Internal Audit
Assurance services
Policies and procedures are adhere
Are controls mitigating the risks
Consulting services
Assisting in developing and drafting policies
Participating in quality teams
Advice to mitigating