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Internal audit services, IT system services, Litigation support service -…
Internal audit services
All audit clients
- financial
- relevant for FR & prevention of fraud & error
- operational
- efficiency, effectiveness, economical
- compliance
- internal: policies & procedures
- external: laws& regulations
- risk mgt
- ability of the co to take risk knowingly
IA services involve assuming mgt responsibilities:
- setting IA policies / strategic direction of IA actv
- audit charter (approve by BOD, IA's power comes from BOD)
- decide recommendations to be implemented
- report results of IA actv to those charged with governance (audit committee) on behalf of mgt
- approve changes to employee data access privileges
- design, implement, monitor & maintain internal ctrl
- firm / network firm provide IA services, self-review create
- audit team use results of IA service without:
- appropriately evaluating those results
- exercising same lvl of prof skepticism
Safeguard
- use prof who not audit team member to perform the services
-
- scope & obj of IA actv depend on the
- size & structure of the entity
- requirements of mgt & those charged with governance
IT system services
All audit clients
- :red_cross:create threat as long as personnel :red_cross:assume a mgt responsibility:
- unrelated to internal ctrl over FR
- :red_cross:generate info forming significant part of a/c records / FS
- implement 'off-the-shelf' accounting/ financial info reporting software tht :red_cross:develop by the firm / network firm
- make recommendations
-
- may / may not relate to FR / financial a/c system
Factors in evaluating the lvl of such threat
- nature of service
- relate to FR / financial a/c system?
- impact / interact with client's a/c records / FS
- degree of reliance
- non issue if not relate to FR / financial a/c system
Safeguard
- using prof who not audit team member to perform the services
-