the Definition, the Code of Ethics, the Standards and the Practice Advisories. Additionally, internal auditors should follow the INTOSAI Code of Ethics. In addition to its role of monitoring an entity’s internal control, an adequate internal audit staff can contribute to the efficiency of the external audit efforts by providing direct assistance to the external auditor. The nature, scope, or timing of the external auditor’s procedures may be modified if the external auditor can rely upon the internal auditor’s work. 2.2.3 Staff members and external stakeholder Staff members and other personnel also effect internal control.
Today, companies with strong internal control also not exceptional from fraud. However, internal and external criminals have less chances in abusing internal control if the internal control policies, processes and procedures are enhanced. Strengthening internal control compromises broad analysis of the risks faced, the internal controls already in place and their ability to prevent fraud from happening. Internal control may be organized corporate-wide,
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 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.
It is costly and takes time for a company to investigate a fraud case. Sometimes when fraud cases are prosecuted, the sentences they receive is very light compared to what they have done to the company. This discourages companies to report fraud. If the company doesn’t report a fraud on the other hand would have many problems. First of which, those who have acted illegally may think that they have not received any consequences to their actions and might repeat their actions in another workplace.
For example, Mark, Hal, Brenda and Gail know about a substantial number of old stock and past due records. By eliminating this data which was found during the audit, would lead them to be part of the group to this unlawful action and dishonor the auditing profession. Brenda and Hal wish to deny these outcomes from Mark’s report to keep their rewards and the significant image of the association. Mark must pick whether to forbid results and abuse the Institute of Internal Auditing's Code of Ethics or conflict with his organization and report his findings. 2 The objectivity principle rule of conduct 2.1 violated that is “internal auditor shall not participate in any activity or relationship that may impair or be presumed to impair their unbiased assessment.
The organization communicates with the outside parties concerning the matters which affect the roles of the internal controls. Control objectives 13. The organization normally selects and then improves the control activities which contribute to the modification of the risks to the accomplishment of the objectives to the satisfactory levels. 14. The organization chooses and improves the overall control activities over the technology in order to support the accomplishment of objectives.
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.
A Critical Analysis of Independence of Internal Audit Function Abstract: Internal Audit Function has played in vital role in the organizations in the modern world. Internal audit functions helps in depicting out the fraud and errors that are created in the financial reports of the enterprise which creates risks for the organization. Henceforth, comes in the auditors responsibilities to carry out their relevant procedures with the documentations provided by the Management to gather information on how strong the organizations internal control system has minimized the fraudulent activities. The independence of the Internal Auditor therefore, is most important in the case