The Internal Audit Manager contributes to the establishment of audit strategies and ensures their successful execution of the audit plan. https://lnkd.in/gQg-2Kr
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An internal audit is a critical process within an organization designed to assess the effectiveness, efficiency, and compliance of its operations. Internal audits help ensure that the organization is adhering to policies, procedures, and regulations, and they identify areas for improvement. Here’s a general overview of what an internal audit process typically involves: ### 1. **Planning** - **Objective Definition**: Determine the scope and objectives of the audit. - **Audit Schedule**: Develop an audit plan, including a timeline and specific areas to be audited. - **Team Assignment**: Assign qualified auditors to perform the audit. ### 2. **Preparation** - **Document Review**: Review relevant documents, including policies, procedures, past audit reports, and any regulatory requirements. - **Interview Planning**: Prepare for interviews with key personnel to understand processes better. ### 3. **Execution** - **Fieldwork**: Conduct the audit through interviews, observations, and reviews of documents and records. - **Data Collection**: Gather evidence to assess whether the processes meet the required standards. - **Finding Documentation**: Record any non-conformities, inefficiencies, or opportunities for improvement. ### 4. **Reporting** - **Audit Report**: Prepare a report summarizing the findings, including non-conformities, areas of improvement, and strengths. - **Recommendations**: Provide recommendations for addressing any identified issues. - **Feedback**: Share the report with relevant stakeholders for review. ### 5. **Follow-Up** - **Action Plan**: Work with management to develop a plan to address the audit findings. - **Implementation**: Ensure that corrective actions are implemented. - **Re-Audit**: If necessary, conduct a follow-up audit to verify that the corrective actions have been effective. ### 6. **Closure** - **Final Review**: Confirm that all audit findings have been addressed. - **Documentation**: Keep a record of the audit process, findings, and corrective actions for future reference. ### Types of Internal Audits: - **Compliance Audit**: Ensures adherence to laws, regulations, and internal policies. - **Operational Audit**: Evaluates the efficiency and effectiveness of business processes. - **Financial Audit**: Assesses the accuracy of financial records and statements. - **Information Systems Audit**: Reviews IT infrastructure, data integrity, and security protocols. ### Benefits of Internal Audits: - **Improved Efficiency**: Identifies inefficiencies in processes and suggests improvements. - **Risk Management**: Helps in identifying and mitigating potential risks. - **Compliance Assurance**: Ensures that the organization is in compliance with relevant laws and regulations. - **Enhanced Control**: Strengthens internal controls and safeguards against errors or fraud.
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**The Importance of Objectivity and Independence in Internal Auditing** In today's business environment, internal auditing is a crucial tool for ensuring organizational goals are met, identifying potential risks, and enhancing operational efficiency. To achieve these objectives effectively, internal auditing activities must adhere to two fundamental principles: objectivity at the individual level and independence at the internal audit management level. **Objectivity: The Cornerstone of Internal Auditor Performance** Objectivity requires internal auditors to address all issues with impartiality and fairness, relying on credible evidence and data. Auditors must base their reports and recommendations on accurate facts and logical analyses, avoiding any conflicts of interest. This approach ensures the provision of accurate and reliable assessments of the organization's internal state, thereby enhancing the credibility of the reports issued by the internal audit department. **Independence: Ensuring Integrity in Internal Audit Management** Independence signifies the need for the internal audit department to be separate from executive management, ensuring the freedom to make decisions and report findings without external influences. The internal audit department should report directly to the board of directors or the audit committee, thereby strengthening its ability to provide objective and honest reports. This administrative and technical affiliation ensures that the internal audit department remains free from pressures exerted by other departments, thus supporting the integrity and impartiality of audit operations. **Addressing Challenges to Maintain Independence** Internal audit departments face challenges in maintaining their independence amidst internal pressures. To overcome these challenges, organizations should adopt a robust framework that supports the independence of the internal audit department by: 1. **Clear Organizational Procedures**: Establishing clear powers and responsibilities for the internal audit department to prevent external interference in its work. 2. **Continuous Training**: Investing in the development of auditors' skills to enhance their ability to make objective and independent decisions. 3. **Regular Reporting to the Board**: Providing comprehensive and periodic reports to the board of directors to ensure senior leadership oversight and follow-up on audit results and recommendations. **The Importance of Adhering to Objectivity and Independence** Balancing objectivity and independence in internal auditing is essential for achieving organizational effectiveness and transparency. By adhering to these principles, organizations can build trust, achieve sustainable growth, and maintain a good reputation in the marketplace. Therefore, any institution striving for excellence must place these principles at the core of its internal auditing policies and procedures.
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Chartered Accountant I Internal Auditor I Branch Controller I ICAN Case Study Tutor I QuickBooks Expert I Enterprise Risk Management I Compliance Specialist I
My Executive Summary: Internal Audit Opinion to the BAC, for the FY 2023. Overall Internal Audit Opinion Objectives "As stipulated by the Institute of Internal Auditor’s (IIA) International Standards for the Professional Practice of Internal Auditing, I am obligated to furnish the Board with assurance regarding the entirety of the internal control system. It is imperative to acknowledge that assurance, by its nature, can never be absolute. The highest level of assurance that the internal audit service can furnish is Substantial Assurance, indicating a strong level of confidence that there are no significant weaknesses in the overall system of internal control. My report also comprehensively outlines this assurance, ensuring transparency and clarity in our assessment." ·Assurances to Members of the Board, the Board’s Audit Committee and the Chief Executive in relation to my assessment of, and opinion on, the Corporate Governance arrangements during the year under review ·Assurances to the General Manager & Finance Manager in relation to internal financial controls to support and inform their duties · Performance information in relation to internal audit and ·the results of the internal audit quality assurance programme Opinion As the Internal Auditor, I confirm that comprehensive audit procedures have been diligently performed. Substantive evidence has been systematically collected to support the accuracy of the conclusions presented in this report. These conclusions result from a thorough evaluation, comparing current circumstances with established audit criteria. The evidence adheres strictly to professional audit standards and provides senior management with strong validation for the drawn conclusions. In my professional assessment, the center has established a robust framework of controls that imparts Substantial Assurance concerning the organization's governance structure, the efficient attainment of objectives, adept management of key risks, and the implementation of measures conducive to optimizing value for money. The internal audit activities conducted throughout the year have revealed several instances of commendable practices and effective internal controls. Various recommendations have been proffered to enhance existing systems and controls, with more significant findings expounded upon later in this report. In summary, the overall level of assurance derived from the audit work in 2023 exhibits improvement compared to the preceding year, 2022. I have concluded that the Nigerian Code of Corporate Governance 2018 is adequate and effective, and although some areas for improvement have been identified, the Code is complied with in all material respects.
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Strategy and Risk Officer @ Yaqar Wealth Management & KSK Associates Good in Research, Wealth Management, Quality and Risk
When we talk about risk assessment, we are ensuring quality audit. But what are the drivers of audit quality? Drivers for audit quality include: 1. Cost and value – quality first at a fair price Be aware of outliers offering either a particularly high or low price. The audit committee (or equivalent) should be responsible for fee negotiations and should question firms about the ability to deliver audit quality if a low quote or justify a higher fee. 2. Independence Objectivity and independence of mind are crucial drivers of audit quality. Meeting audit independence requirements is an important criterion when it comes to deciding which firms should be invited to tender. All audit firms should have processes in place as part of their own quality controls regarding the procurement of non-audit services to ensure their objectivity, integrity and independence is not threatened. 3. A good working relationship The ideal relationship between the audit committee/equivalent, finance director, the finance team and the auditors is founded on mutual professional respect without particular dominance. 4. Approach and capacity The effectiveness of the audit process - the proposed audit approach should demonstrate understanding of the organization, its sector, any key specialisms, major risks and how the auditor will respond to those risks. There is a balance - focusing on solely identical sector experience can mean missing out on good practice and insights from other sectors. Capacity to undertake the work - firms should be able to identify key partners, managers and staff who possess the skills to provide a quality service in the sector, appropriate geographical coverage and training. Firms’ audit quality records and reviews by external regulators may be available for review and discussion. 5. Access to additional (non-audit) services Depending on the organization’s needs, a firm’s capability to supply these to meet knowledge or skills gaps may be relevant. There is a balance to achieve the benefits of rotation yet avoiding rotation which is so frequent that it incurs unnecessary cost (for the organization and audit firms). It is good practice to periodically reassess and challenge what is an appropriate frequency for tendering. Source: https://lnkd.in/dMX59Utp
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Is your Internal Audit function ready for the Global Internal Audit Standards? We are pleased to see that the Institute of Internal Auditors launched the new Global Internal Audit Standards today. The Standards will become effective from 9 January 2025 (although early adoption is encouraged) and apply to all Internal Audit professionals and functions across all industries and sectors. Read the full Standards here: https://lnkd.in/eUjEkWwn Each of the 52 Standards include requirements, considerations for implementation and examples of evidence to demonstrate conformance. Internal Audit functions will need to incorporate the new requirements as well as approaches to capture evidence to demonstrate conformance within existing quality assurance and improvement programmes. Key changes include: - The introduction of the Purpose statement for Internal Audit to assist auditors and stakeholders to understand and articulate the value of Internal Audit. - A requirement for functions to develop an Internal Audit Strategy (including a vision) that supports the strategic objectives and success of the organisation. - Internal Audit performance objectives and measures to evaluate functional performance need to be approved and monitored by Boards. - Internal Audit methodology delivery requirements related to identifying root causes, prioritizing findings, developing engagement conclusions and communicating themes. We will share a more detailed view on the likely impact that the new Standards will have on our profession and share details on strategies to navigate and capitalise on the opportunities presented by the new Standards. In the meantime please don’t hesitate to reach out to us with your perspectives or questions.
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A really important question for all entities ... Is your Internal Audit function ready for the Global Internal Audit Standards?
Is your Internal Audit function ready for the Global Internal Audit Standards? We are pleased to see that the Institute of Internal Auditors launched the new Global Internal Audit Standards today. The Standards will become effective from 9 January 2025 (although early adoption is encouraged) and apply to all Internal Audit professionals and functions across all industries and sectors. Read the full Standards here: https://lnkd.in/eUjEkWwn Each of the 52 Standards include requirements, considerations for implementation and examples of evidence to demonstrate conformance. Internal Audit functions will need to incorporate the new requirements as well as approaches to capture evidence to demonstrate conformance within existing quality assurance and improvement programmes. Key changes include: - The introduction of the Purpose statement for Internal Audit to assist auditors and stakeholders to understand and articulate the value of Internal Audit. - A requirement for functions to develop an Internal Audit Strategy (including a vision) that supports the strategic objectives and success of the organisation. - Internal Audit performance objectives and measures to evaluate functional performance need to be approved and monitored by Boards. - Internal Audit methodology delivery requirements related to identifying root causes, prioritizing findings, developing engagement conclusions and communicating themes. We will share a more detailed view on the likely impact that the new Standards will have on our profession and share details on strategies to navigate and capitalise on the opportunities presented by the new Standards. In the meantime please don’t hesitate to reach out to us with your perspectives or questions.
theiia.org
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See below for an update on the new Global Internal Audit Standards that will come in from 2025. What a way to end the week, happy reading!
Is your Internal Audit function ready for the Global Internal Audit Standards? We are pleased to see that the Institute of Internal Auditors launched the new Global Internal Audit Standards today. The Standards will become effective from 9 January 2025 (although early adoption is encouraged) and apply to all Internal Audit professionals and functions across all industries and sectors. Read the full Standards here: https://lnkd.in/eUjEkWwn Each of the 52 Standards include requirements, considerations for implementation and examples of evidence to demonstrate conformance. Internal Audit functions will need to incorporate the new requirements as well as approaches to capture evidence to demonstrate conformance within existing quality assurance and improvement programmes. Key changes include: - The introduction of the Purpose statement for Internal Audit to assist auditors and stakeholders to understand and articulate the value of Internal Audit. - A requirement for functions to develop an Internal Audit Strategy (including a vision) that supports the strategic objectives and success of the organisation. - Internal Audit performance objectives and measures to evaluate functional performance need to be approved and monitored by Boards. - Internal Audit methodology delivery requirements related to identifying root causes, prioritizing findings, developing engagement conclusions and communicating themes. We will share a more detailed view on the likely impact that the new Standards will have on our profession and share details on strategies to navigate and capitalise on the opportunities presented by the new Standards. In the meantime please don’t hesitate to reach out to us with your perspectives or questions.
theiia.org
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Internal Audit Operations Not every company have found a way around their internal audit operations, they struggle with getting it right. But the function of the internal audit department is important. The internal audit experts provides independent assurance and consulting services that enhance a company's efficiency and effectiveness by systematically managing risk, control, and governance processes. It ultimately aims to be the valued business partner within the organization. One of the ways to get your internal audit done is by outsourcing it to firms with the expertise. Many organizations outsource to experts like TS Synergy Consultancy Services to ensure their processes, controls, and IT procedures align with company objectives and swiftly address any identified issues. TS Synergy offers comprehensive internal audit services across industries, from establishing audit functions to enhancing existing departments with specialized skills. To get all the benefits of outsourcing your company's internal audit operations, click the link in the bio to contact us today, or email info@tssynergyconsult.com for a free consultation and let us take the stress of auditing off you.
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🔍 Detailed Statutory Audit Planning: A Comprehensive Guide As auditors, our meticulous planning process for statutory audits encompasses several crucial aspects: 1️⃣ Understanding Legal Framework: Deep dive into statutory requirements, regulations, and compliance standards relevant to the client's industry and jurisdiction. 2️⃣ Client Assessment: Thoroughly assess the client's business operations, industry risks, internal controls, and financial reporting history to tailor audit procedures. 3️⃣ Risk Identification: Identify and evaluate inherent and control risks, including industry-specific risks, changes in regulations, and internal control weaknesses. 4️⃣ Materiality Thresholds: Determine materiality thresholds based on financial statements' significance to stakeholders and the regulatory environment. 5️⃣ Resource Allocation: Allocate skilled personnel, time, and technology resources based on the complexity and scale of the audit engagement. 6️⃣ Audit Approach Selection: Choose between a substantive or controls-based audit approach, considering risk assessment outcomes and efficiency goals. 7️⃣ Audit Procedures Planning: Develop a detailed plan outlining specific audit procedures for each financial statement assertion, including testing controls and substantive testing. 8️⃣ Timeline Establishment: Set realistic timelines for audit completion, milestone reviews, and client deliverables to ensure timely and efficient execution. 9️⃣ Documentation Standards: Establish clear documentation standards for audit workpapers, findings, conclusions, and communications to ensure compliance and transparency. 🔟 Client Communication Strategy: Develop a communication plan outlining regular updates, meetings, and feedback mechanisms to maintain transparency and manage expectations. 1️⃣1️⃣ Quality Assurance Measures: Implement quality control procedures to review audit work, ensure adherence to professional standards, and mitigate risks of errors or omissions. 1️⃣2️⃣ Regulatory Compliance: Stay abreast of evolving regulatory requirements and changes in auditing standards to ensure compliance throughout the audit process. 1️⃣3️⃣ Continuous Monitoring: Continuously monitor audit progress, reassess risks, and adjust audit procedures as necessary to address emerging issues or changes in circumstances. By meticulously addressing each of these aspects in our statutory audit planning, we aim to deliver high-quality, compliant, and value-added audit services to our clients. #StatutoryAudit #Compliance #riskmanagement #pankajposts
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