A report on Internal audit

Independent, objective assurance and consulting activity designed to add value and improve an organization's operations.

- Internal audit

11 related topics with Alpha

Overall

Internal control

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Process for assuring of an organization's objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.

Process for assuring of an organization's objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.

The internal auditors and external auditors of the organization also measure the effectiveness of internal control through their efforts.

Some typical stages in the audit process

Audit

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An "independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon.” Auditing also attempts to ensure that the books of accounts are properly maintained by the concern as required by law. Auditors consider the propositions before them, obtain evidence, and evaluate the propositions in their auditing report.

An "independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon.” Auditing also attempts to ensure that the books of accounts are properly maintained by the concern as required by law. Auditors consider the propositions before them, obtain evidence, and evaluate the propositions in their auditing report.

Some typical stages in the audit process

These reviews may be performed in conjunction with a financial statement audit, internal audit, or other form of attestation engagement.

Institute of Internal Auditors

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The Institute of Internal Auditors (IIA) is an organization which advocates, provides educational conferences, and develops standards, guidance, and certifications for the internal audit profession.

Chief audit executive

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The chief audit executive (CAE), director of audit, director of internal audit, auditor general, or controller general is a high-level independent corporate executive with overall responsibility for internal audit.

Enterprise risk management

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Enterprise risk management (ERM) in business includes the methods and processes used by organizations to manage risks and seize opportunities related to the achievement of their objectives.

Enterprise risk management (ERM) in business includes the methods and processes used by organizations to manage risks and seize opportunities related to the achievement of their objectives.

In addition to information technology audit, internal auditors play an important role in evaluating the risk-management processes of an organization and advocating their continued improvement.

Seal of the United States Government Accountability Office

Financial audit

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Conducted to provide an opinion whether "financial statements" are stated in accordance with specified criteria.

Conducted to provide an opinion whether "financial statements" are stated in accordance with specified criteria.

Seal of the United States Government Accountability Office

Many organizations separately employ or hire internal auditors, who do not attest to financial reports but focus mainly on the internal controls of the organization.

Example of risk assessment: A NASA model showing areas at high risk from impact for the International Space Station

Risk management

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Identification, evaluation, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities.

Identification, evaluation, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities.

Example of risk assessment: A NASA model showing areas at high risk from impact for the International Space Station

See also Chief Risk Officer, internal audit, and.

Auditor

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Person or a firm appointed by a company to execute an audit.

Person or a firm appointed by a company to execute an audit.

Internal Auditors are employed by the organizations they audit. They work for government agencies (federal, state and local); for publicly traded companies; and for non-profit companies across all industries. The internationally recognised standard setting body for the profession is the Institute of Internal Auditors - IIA (www.theiia.org). The IIA has defined internal auditing as follows: "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".

Audit committee

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Committee of an organisation's board of directors which is responsible for oversight of the financial reporting process, selection of the independent auditor, and receipt of audit results both internal and external.

Committee of an organisation's board of directors which is responsible for oversight of the financial reporting process, selection of the independent auditor, and receipt of audit results both internal and external.

Overseeing the performance of the internal audit function.

Committee of Sponsoring Organizations of the Treadway Commission

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Joint initiative to combat corporate fraud.

Joint initiative to combat corporate fraud.

As an independent function that informs senior management, internal audit can evaluate the internal control systems implemented by the organization and contribute to continued effectiveness.