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IA CHAP 1: CONTRODUCTION TO INTERNAL AUDITING - Coggle Diagram
IA CHAP 1: CONTRODUCTION TO INTERNAL AUDITING
What is Internal
Auditing?
Independence
refers to the
organizational status
of
the internal audit function. (Where is the internal
audit within the organization structure?)
Objectivity
refers to the
mental attitude
of individual internal auditors. (Should internal auditors get involve with functional department operation?
Def
Internal auditing is an
independent
,
objective
assurance and consulting activity designed to
add value
and improve an organization's operations. It
helps an organization accomplish its objectives
by bringing a
systematic
,
disciplined
approach
to
evaluate and improve
the
effectiveness
of risk management, control, and governance processes.
Add value = value proposition
Insight
= Catalyst, Analyses, and Assessments
Objectivity
= Integrity, Accountability, and Independence.
Assurance
= Governance, Risk, and Control
Common types of business objectives
Strategic objectives
Operations objectives
Reporting objectives
Compliance objectives
Internal audit follows
systematic and disciplined
approach to
evaluate and improve
the
effectiveness
of the organisation
Specific engagement process
Standard to comply for the engagement
Evaluate and improve
the
effectiveness
means internal audit
attention is with
Reliability and quality of information systems for decisionmaking
Asset safeguard
Effectiveness and efficiency of business processes
Compliance policies, laws, and regulations
Internal Auditing and External Auditing
Types of Audits
Compliance Audit
Review the compliance
Financial Statement Audit
Examine financial statements (true and fair?)
Operational Audit
Measuring business/department/unit performance (effective and efficiency?)
Internal auditor
provides financial statement audit
service
primarily for the
benefit
of
management
board of directors (BOM-HĐQT)
Types of Auditors
Governmental Auditors
External Auditors
Internal Auditors
Internal Audit Profession
(nghề nghiệp)
Quality
(phẩm chất) of an internal auditor
Connectivity
understand the needs of each of the stakeholders individually within the greater whole of the organization
Communication
relaying information and listening to the individuals served
Credibility
inspire trust
consistent competence
integrity (uy tín)
Courage
remain independent and objective and to stand by the results of the engagements conducted
Competence
knowledge
skills