Internal Audit Function (IA): A Case Study

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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. (Gramling, A., Maletta, M., Schneider, A., & Church, B., 2004, p.194). CG have a positive inspiration using IAF for reporting quality and firm performance. IAF is an independent, help to improve by controlling the situations and reduce reporting errors result.

Two key requirements to be a good CG are performance and conformance. Performance
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are core IA roles in ERM, legitimate IA roles with safeguards and roles IA should not undertake. In core IA Roles gives assurance on risk management process and risk are correctly evaluated, evaluating risk management process, reporting risk and reviewing management key risks. Legitimate internal audit roles with protections by developing risk management strategy for board to approve. By Maintaining and developing the Risk management framework, facilitating identify cation and evaluation of risks and thirdly, roles internal audit should not undertake through setting up risk appetite, imposing risk management procedures, managing assurance on risks, taking decision on risk responses, accountability for risk…show more content…
IAFs act as management training ground to ensure sever internal audit services and preparing internal auditors to one of effective managers. Those new recruits will be put in IAF for a least two to three years make sure well prepare to take entry level management position or other position in an organization. This IAF gives an employee a special opportunity to see how the resources and processes of whole organization. The internal auditors have a chance to exposed to top executive and areas of a business which their employees never seen before. The advantages are those internal audit with experiences can understand more on important of internal controls, they got a chance to learn either systematic or analytical working ways, only qualified applications are involved into a position within IAF. The disadvantages The quality of IAF may affected due to qualified internal auditors leave IAF, the employees have less long term of interest in doing internal auditing and no other reason to improve quality of IAF and reducing occurs when internal auditor’s become independence and

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