4) DUE PROFESSIONAL CARE, SKILLS AND COMPETENCE The internal audit activity should collectively possess or obtain the knowledge, skills, and other competencies to perform its responsibilities. Internal auditors should not apply the care and skill expected of a reasonable prudent and competent internal auditor. 5) DOCUMENTATION AND PLANNING The internal auditor should document matters, which are important in providing evidence that the audit was carried out in accordance with the standards on internal audit and support his findings or the report submitted by him. 6) EVIDENCE The internal auditor should obtain all evidences considered necessary for the expression of an informed opinion. He should document matters that the expression of an informed opinion.
5 Businesses or organizations throughout the world exhibit their own audit controls as well as observe specific procedures. When addressing IT audit issues, a business such as Asplundh Tree Expert, Inc. are known for their efficient audit procedures and internal practices. IT audit process effectiveness happens when an organization or business is adhereing or responding to set procedures. An organization may conduct several diverse audits, but consequently regardless of the audit type used, an audit is done to ensure a business or organization are using all resources available to them and for their benefit. Diverse IT audit selection ensures that the company set and meet goals and objectives that have been laid down by the international standards
Internal auditors Internal auditors provide operational, strategic, and tactical value to the business. They inform the Change Advisory Board and management about the other stakeholders’ understanding of change management and adherence to policies. They validate the efforts of management to be effective and proactive in facing current and future threats. They compare present practices within the organization with regulatory guidelines and industry practices. What are the responsibilities of internal auditors?
This is due to that the way that environmental audits are designed raises the question of who should be responsible to the cost of the collection and disclosure of environmental information. In addition the questions are raised on whether the company or the stakeholders in whose interest the information is collected should bear the cost or not.. Environmental audit is not good due to that it discloses environmental information to public and the environmental audit can also reveal violation of environmental rules that might affect the company financial or can have negative consequences for its corporate image Hamand (n.d). The audit also disrupts the company’s operation, although proper scheduling might mitigate risk. Environmental audit also increases the risk of liability if the response to the audit is insufficient or if the environmental audit reveals problems simultaneously, which can cause difficulties in setting priorities Hamand
Internal audit function (IAF) act as a first line defense in corporate governance (CG) for checks and balances. Sometime, it has deeper understanding of current and have potentials role IAF in CG. Internal Audit (IA) provide a better future research and development on a new IAF. Example: role to ensure provides a quality of CG. CG consist of audit committee (AE), external auditor (EA), IAF and management.
Audit independence is independence from parties that have an interest in the financial statements of the reporting entity. Audit independence is an attitude of mind characterised by integrity and an objective approach to the audit process (Baker, 2005). The auditor’s independence is the cornerstone of the auditing profession as it is the foundation of the public’s trust in the audit work (Lindberg and Beck, 2004). The auditor’s independence is also a crucial in the statutory reporting process and it’s a key prerequisite for adding value to the audited financial statements (Mautz and Sharaf, 1961). The purpose of an audit is to enhance the credibility of financial statements by providing written reasonable assurance from independent sources that the financial statements present a true and fair view in accordance with the accounting standards.
The IT Audit function in the Board must contribute towards: Bringing innovation method into positioning with company strategy. Ensuring that technology decisions remain in the very best interests of shareholders. Cultivating organizational development and alignment between business systems. Increasing the Board's overall understanding of technological issues and repercussions within the company. This type of understanding can not come from monetary analysis alone.
Introduction Auditing is a systematic process of objectively obtaining and evaluating evidence to ascertain the degree of correspondence between the assertions and communicating the results to interested users. Whereas, auditors are the person who conducts the auditing procedures to obtain reasonable assurance that the financial statement are free from material misstatement, whether cause by the fraud or error. Although ISA 240 recognized that the auditor may fail to detect material misstatement caused by fraud as the financial statement is well concealed and embedded, but it still does not exclude auditor from detecting fraud (Hasaan, 2013). Besides, it also mentions that it is the responsibilities of auditor to consider fraud in auditing
Part II: IT Audit in the process of financial audit After outlining the main impacts of the new technologies of information and communication on the business and financial audit, it is clear that IT audit has become a necessary element in a financial audit. IT audit, in its broadest sense, can handle multiple aspects covering the function computer applications as well. However, it is worth noting that in the context of a financial audit mission is looking for reliability that is privileged. Other aspects of effectiveness and efficiency, generally covered by the operational audit is not required by the financial audit. Chapter 1: The need to use a computer audit and its role in a mission to financial audit It’s during the mission planning that the need of IT audit use is felt.