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Internal Auditors
Other roles:
1. Review of control activities ● Review of control systems within the entity; and
2. Examining the timeliness of ● Regular review of systems and ensuring that issues are
control information reported.
3. Value for money audits ● Identifying whether a decision is appropriate for the
organisation;
4. Identifying business risks ● Review of the entity and its control systems;
6. Supporting the audit committee ● Audit committee - a group of non-executive directors who
manage external and internal auditors.
7. Special purpose tasks ● Special investigations requested by the entity management,
including mystery shopper reviews, inventory counts, and asset
inspections.
2. Scope of details Plan and perform audit procedures on Cover many areas looking at the
control systems, transactions and systems and controls used by the
balances in FS. entity. Amount of work depends on
the management’s requirements.
5. Appointment and By shareholders by vote, usually at the By the board of directors or the
removal AGM. audit committee.
6. Whether they are a legal Required by law (there are some Not required by law.
requirement exemptions).
Recommended by corporate
governance to ensure sound control
systems.
RELIANCE ON INTERNAL AUDITORS' WORK
A. Scope of work;
B. Technical competence;
D. Independence.
1. Company is large;
OUTSOURCING
Outsourcing: Not all companies will benefit from a full-time internal audit function. In this case audit firms
provide expertise for clients needing an internal audit.
Advantages Disadvantages