operational audits : systematic review of the efficiency and effectiviness of operation
finacial audit :financial informations are reliable and produced in an effecient and timely manner
the audit of IT systerms : procive a reliable basis and reducing risk of misstatements
compliance audit : compliance with law and regulations
fraud investgations: range from theft to assets to fraudulent financial reporting ;investigate specific instance of suspected fraud :review and test control and prevent or detect fraud .
customer experience audits :phoning in or visiting stores/outlets
Assessing the need for internal audit
scale and diversity of activities
cost /benenfit considerations
the desire of senior management to have assurance and advice on risk and control
the current control environment and whether there is a history of fraud or control deficiencies
internal audit & external audit
objective : improve operation and review efficiency // express an opinion
appointment : audit committee // shareholders
reporting : management and TCWG // publicli available to shareholders
responsibilities for fraud and error : prevention of fraud and error by assessing the effectiveness of internal control systerm.//obtaining reasonable assurance the FS are free from material misstatement whether caused by fraud or error.
outsouring internal audit function
Advantages
be independent of client // qualified ,competent staff , broader renge of expertise //specialist skills // flexible basis, more cost effective // new market place technologies // cost of permanent staff are avoidede
Disadvantages
lack the intimate knowledge of organisation // engagements are constrained by contractual terms // fees may be high // ethical threat // lack of control over the quality of service .
limitation of internal audit
employees of the company may not wish to raise issues// internal audit may be a part of the finance function // familiarity threat : long standing colleagues and friends
