Scribd
Upload
468 views2 pages

Internal Audit Notes

The standards delineate the basic principles of internal auditing and provide a framework for performing and promoting value-added internal auditing. They establish a basis for evaluating performance. The standards address attributes of organizations and individuals performing internal auditing as well as describing the nature of internal auditing. An internal audit charter formally defines the purpose, authority, and responsibility of the internal audit activity within an organization. The chief audit executive must ensure independence and develop a quality assurance program including internal and external assessments to evaluate conformance with the standards. A risk-based plan and policies/procedures must be established to guide the internal audit activity.

Uploaded by

Jc Buenaventura
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
468 views2 pages

Internal Audit Notes

The standards delineate the basic principles of internal auditing and provide a framework for performing and promoting value-added internal auditing. They establish a basis for evaluating performance. The standards address attributes of organizations and individuals performing internal auditing as well as describing the nature of internal auditing. An internal audit charter formally defines the purpose, authority, and responsibility of the internal audit activity within an organization. The chief audit executive must ensure independence and develop a quality assurance program including internal and external assessments to evaluate conformance with the standards. A risk-based plan and policies/procedures must be established to guide the internal audit activity.

Uploaded by

Jc Buenaventura
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
You are on page 1/ 2

Standards

-Delineate the basic principles that represent the practice of internal auditing
-Provide framework for performing and promoting a broad range of value added int
ernal auditing
-Establish a basis for evaluation of internal auditing performance
-Foster improved organizational process and operations
Attribute standards- Addresses the attribute of organizations and individuals pe
rforming internal auditing
Performance Standards- Describe the nature of internal auditing, provide a quali
ty criteria against w/c performance of these services can be measured
Implementation Standards- Expand the Att. & Perf. Standards by providing require
ment to assurance and consulting activity
IA Charter- Formal document that defines the IA activity's purpose, Authority an
d Responsibility
- Establishes IA activity's position w/in the organization
- Nature of reporting of CAE to the BOD
- Authorizes access to personel,records and physical properties relevant to the
performance of engagements
- Scope of internal audit
- Nature of assurance services & Consulting activity must be defined in the IA
charter
*If assurances are to be provided by third party, the nature must also b
e defined in the IA Charter
- Definition of IA, CoE,and standards
* CAE- Must periodically review the IA charter
* Final approval of IA charter resides with the board
Internal audit Activity must be independent
* Must have direct and unrestricted access to senior mgt and the BOD
*CAE must confirm to the board about the org. independence atleast annually
*CAE Functionally reports to the BOD
Impairment
* If independence is impaired, The details must be disclosed to appropriate par
ties.
- conflict of interest, scope limitations, Restrictions on access to reco
rds, personnel, properties & Resource limitations
*Internal auditor must refrain from specific operations that they were previous
ly responsible in the prev. year
- they can provide consulting activities w/ they had previous responsibi
lities
Quality assurance and Improvement
* CAE must develop and maintain quality assurance and improvement program
* Internal and External Assessments
Internal Assessments
- Ongoing monitoring of the perf. of the IA activity
- Periodic assessments by other persons w/in the organization with sufficient k
nowledge in IA practices
External Assessments
- Conducted atleast once every 5 yrs by a qualified independent assessor
- CAE must discuss w/ the BOD the ff
* Form and frequency of external assessment

* Qualification & independence of external assessor or assessment team


CAE MUST Communicate the result of the quality assurance and improvement program
to the senior mgt and the board
PERFORMANCE STANDARDS
- CAE must establish a risked based plan to determine the priorities of the inte
rnal audit activity
- CAE must establish policies and procedures to guide the IA Activity
Control- The actions taken to manage risk and increase the likelihood that estab
lished objectives and goals will be achieved
Control Environment - for the attitudes and actions of the board and management
regarding the
significance of control within the organization
Control processes- the policies, procedures, and activities that are part of a c
ontrol framework, designed to ensure that risks are
contained within the established risk tolerances

You might also like