C P Mansoor S Ahmed M Com PGDBA

C. P. Mansoor S. Ahmed M. Com, PGDBA Internal Audit

Internal Audit �Not confined to Independent Audit �Systematic Examination of Records Procedures Systems Operations

Definition �“Internal Auditing is an independent and an objective assurance and consulting activity designed to add value and improve an organization’s operation. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control & governance process. ” IIA USA

Scope of Internal Audit � Risk Management & Control � Reliability & Integrity of Financial & Operational Information Compliance with Laws, Regulations & Contracts Safeguarding the Assets Effectiveness & Efficiency of Operations Accomplishments of Objectives & Goals for operation Governance Promoting Values & Ethics Effective Organizational Performance Management & Accountability Effectively Communicating Risk & Control Information to appropriate areas of organization Effectively co-ordinating the activities of and communicating information among the board, external & internal auditor and management.

Need for Internal Auditing �Growth Size Operation Location � Specialists Records Procedures Systems Operations

Operation of INTERNAL AUDIT �Purpose, Authority and Responsibility �Planning �Policies and Procedures �Personal Management and Development �External Auditors �Quality Assurance

Professional Proficiency of Internal Audit Department �Staffing �Knowledge, Skills and Disciplines �Supervision

Performing Audit Work �Planning the Audit �Examining & Evaluating Information �Communication Results �Appropriate Follow-up �Preparation of Audit Reports �Discussion and Follow-up of Reports �Reporting to Top Management

Code of Ethics for Internal Auditors Integrity • Honest, Diligent, Responsible Objectivity • Nothing that conflicts with the interest of the organization Confidentiality • Mis-use of information Competency • Subjected to professional expectancy