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Internal Auditing Process:

Internal Auditors Turn Focus to Culture, Technology Risk


Internal Auditing Process:

                According to the open source definition of internal auditing activity “Internal Audit Activity can be define as set of  independent  activities which provide the assistance to objective based and consulting activities to the business organizations regarding their projects and operational activities.”
                Internal audit activity is now considering as most important for business departments and organizations to list at the stock exchanges in United States of America. As we know that the Institute of  Internal Auditors (THE IIA) defines the internal auditor activities as follows “ Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations”

1.       The Internal Auditing activity is organizationally completely independent and it started with the attitude of objectivity under which all the activities carrying out.

2.       The complete process is operational and headed by Chief Audit Executive and he/she reports directly to Chief Executive Officer.

3.       Chief Audit Executive has access to the board of directors. The complete process  need a  Purpose, authority and responsibility as the IAA defined and it must be written.

4.       The complete process is functional under the three principal functions.

5.       The process of internal audit activities helps the upper management to maintain the process or systems through internal control.

6.       They helps the upper management to improve their efficiency.

7.       They provide the assistance to the external auditors to conduct the audit of financial statements.

8.       The internal audit activities report about any kind of issues which the business facing. The issue can be fraud, theft, sabotage, security, transaction posting, financial statements standards.

9.       The can follow up all the above mentioned issues at the any stage of the process.

10.   They can assess the operational auditing to review the functions to make them more effective and efficient.
11.   They can access the senior management, oversees establishment, administration and assessment of the system of risk management and control. The line managers assess control in their areas.

12.   The internal auditors provide the authenticity and assurance about the effectiveness of risk management and control.

13.   The CAE is responsible to obtains all the sufficient evidences to assess and reach the adequacy and effectiveness of control.

14.   The results of this process and activities must be communicated to management and the board of directors.

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