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CHAPTER 5 - MANAGEMENT OF INTERNAL AUDIT ACTIVITY - Coggle Diagram
CHAPTER 5 - MANAGEMENT OF INTERNAL AUDIT ACTIVITY
IMPORTANT
functions effectively and efficiently
serves as an added value to the organisation
RELATED STANDARD
ATTRIBUTE STANDARD
ATTRIBUTE STANDARD 1210: PROFICIENCY
ATTRIBUTE STANDARD 1230: CONTINUING PROFESSIONAL DEVELOPMENT
PERFORMANCE STANDARD
2000: MANAGING THE INTERNAL AUDIT STANDARD
2030: RESOURCES MANAGEMENT
2230: ENGAGEMENT RESOURCES ALLOCATION
INTERNAL AUDIT CHARTER
Staffing requirements
Elements affecting staffing requirement
consequences of inadequate staffing
STAFFING
Selection of staff
an appropriate process for hiring - ensure that only qualified candidates are selected
Training and promotion
purpose: enhance and upgrade knowledge, skill and competencies of internal auditors
OUTSOURCING
Introduction
independent parties to perform functions within organisations
ready - made staff with necessary skills and competencies
reason for outsources
scarcity or unavailability of internal audit resources
to acquire timely and professional internal audit services
cost advantage
Outsources Benefits
focus on core
cost minimisation
business efficiency
increase business geographical location coverage
future expectations for in-house auditor
Outsources Limitation
organisation culture hindering external provider's performances
external provider lack of knowledge
lack long-range development
Outsoure arragement
FULL OUTSOURCING
PARTIAL OUTSOURCING
CO-SHARING
SUB-CONTRACTING
RISK-BASED INTERNAL AUDIT PLAN RESOURCES MANAGEMENT
Types of conflicts
Inherent Conflicts
Avoidable Conflicts
Recommend practice for avoidable conflicts
Develop trust
Be a salesperson
Educate the audities
Be objective and factual
How to deal with conflicts
Consider positive aspect of conflict
seek support from higher level and management
Compromise on more responsive and important findings