Scribd Logo
Upload

Welcome to Scribd!

  • 79 views

    Internal Auditing 02 IA Overview

    Uploaded by

    Summer Fitz
    This document discusses assurance and non-assurance engagements, internal auditing, and the internal audit profession. It defines assurance engagements as independent professional services that improve the quality of information for decision makers. Key elements of assurance engagements include a three-party relationship, appropriate subject matter, suitable criteria, and sufficient evidence. Non-assurance engagements lack one or more of these elements. Internal auditing adds value by evaluating risk management and governance processes. The internal audit profession established standards and guidance through the Institute of Internal Auditors to ensure independent and objective assurance services.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Internal Auditing 02 IA Overview

    Uploaded by

    Summer Fitz
    79 views3 pages
    This document discusses assurance and non-assurance engagements, internal auditing, and the internal audit profession. It defines assurance engagements as independent professional services that improve the quality of information for decision makers. Key elements of assurance engagements include a three-party relationship, appropriate subject matter, suitable criteria, and sufficient evidence. Non-assurance engagements lack one or more of these elements. Internal auditing adds value by evaluating risk management and governance processes. The internal audit profession established standards and guidance through the Institute of Internal Auditors to ensure independent and objective assurance services.

    Original Description:

    internal auditing

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses assurance and non-assurance engagements, internal auditing, and the internal audit profession. It defines assurance engagements as independent professional services that improve the quality of information for decision makers. Key elements of assurance engagements include a three-party relationship, appropriate subject matter, suitable criteria, and sufficient evidence. Non-assurance engagements lack one or more of these elements. Internal auditing adds value by evaluating risk management and governance processes. The internal audit profession established standards and guidance through the Institute of Internal Auditors to ensure independent and objective assurance services.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    79 views3 pages

    Internal Auditing 02 IA Overview

    Uploaded by

    Summer Fitz
    This document discusses assurance and non-assurance engagements, internal auditing, and the internal audit profession. It defines assurance engagements as independent professional services that improve the quality of information for decision makers. Key elements of assurance engagements include a three-party relationship, appropriate subject matter, suitable criteria, and sufficient evidence. Non-assurance engagements lack one or more of these elements. Internal auditing adds value by evaluating risk management and governance processes. The internal audit profession established standards and guidance through the Institute of Internal Auditors to ensure independent and objective assurance services.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    FUNDAMENTALS OF ASSURANCE AND NON-ASSURANCE ENGAGEMENTS is the information collected for review of a company's financial

    transactions, internal control practices and other factors


    necessary for the certification of financial statements
    ASSURANCE ENGAGEMENTS a. Sufficiency is the measure of quantity of audit evidence
    b. Appropriateness on the other hand is the measure of quality
    • An assurance engagement is an independent professional service that of audit evidence
    improves the quality and credibility of information to decision makers The practitioner plans and performs an assurance
    Need for an independent financial statements audit engagement with an attitude of professional skepticism
    • Written assurance report
    1. Conflict interest between management and users of financial statements It is a written report provides by the practitioner containing conclusion
    2. Expertise that conveys the assurance obtained about the subject matter
    3. Remoteness information
    4. Financial consequences

    Elements of an assurance engagements (WATSS)


    NON-ASSURANCE ENGAGEMENTS
    • Three party relationship
    a. Practitioner - Lacks one or more of the five elements of an assurance engagements
    b. Responsible party - Example: 1. Related services, such as: Agreed-upon procedures
    c. Intended users engagements, Compilations of financial or other information
    engagements 2. Tax services (such as the preparation of tax
    • Appropriate subject matter
    returns where no conclusion conveying assurance is expressed) 3.
    Identifiable and capable of consistent evaluation or
    Consulting (or advisory) engagements, such as management and tax
    measurement against the identified criteria and such that
    consulting
    information about it can be subjected to procedures for
    gathering sufficient appropriate evidence
    a. Financial performance or condition
    b. Non financial performance or condition INTERNAL AUDITING
    c. Physical characteristics - is an independent, objective assurance and consulting activity designed to add
    d. Systems and processes value and improve an organization's operations. It helps an organization
    e. Behavior accomplish its objectives by bringing a systematic, disciplined approach to
    • Suitable criteria evaluate and improve the effectiveness of risk
    Benchmarks used to evaluate the subject matter management, control and governance processes.
    It is required for reasonably consistent evaluation or Some Key points of internal auditing
    measurement of a subject matter within the context of
    professional judgement a. It assists management to improve internal controls by identifying
    a. Relevance weaknesses in systems and provides an opportunity to correct those
    weaknesses
    b. Completeness
    c. Reliability b. Helping the organization accomplish its objectives: strategic, operations,
    d. Neutrality reporting, compliance
    e. Understandability c. It helps in evaluating and improving the effectiveness of Risk
    • Sufficient appropriate evidence Management: governance, risk management, control
    d. Assurance and consulting activity: designed to add value and improve ❖ 2008: Computer-based testing is introduced for all professional
    operations examinations administered by The IIA.
    The assurance part includes informing managers and directors how the
    THE NATURE AND SCOPE OF MODERN INTERNAL AUDIT SERVICES
    systems and processes put in place by management are working.
    ❖ The targets of internal audit attention may include:
    Consultation then takes place on how to improve these systems and
    processes where necessary ▪ Operational effectiveness and efficiency of business processes
    ▪ Reliability of information systems and the quality of the decision-making
    e. It is independent and objective information produced by those systems
    ▪ Safeguarding assets against loss, including losses resulting
    from management and employee fraud
    Some of the benefits of having a good system of internal controls are: ▪ Compliance with organizational policies, contracts, laws and regulations
    ❖ Governing bodies and senior management rely on Internal Auditing for

    - Helping protect assets and reduce the possibility of fraud objective assurance and insight on the effectiveness
    - Improving efficiency in operations and efficiency of governance, risk management, and internal control
    - Increasing financial reliability and integrity processes.
    - Ensuring compliance with laws and statutory regulations THE INSTITUTE OF INTERNAL AUDITORS
    ❖ The internal audit profession’s global voice, standard-setter, and resource
    - Establishing monitoring procedures
    for professional development and certification.

    PROFESSIONAL GUIDANCE
    THE INTERNAL AUDIT PROFESSION
    ❖ International Professional Practices Framework is the conceptual
    ❖ 1941: Establishment of The Institute of Internal Auditors with 24 framework that organizes authoritative guidance promulgated by The
    members. Institute of Internal Auditors.
    ❖ 1948: The first chapters outside North America are formed in ❖ Conformance with the principles set forth in mandatory
    London and Manila. guidance is required and essential for the professional practice of internal
    ❖ 1968: The IIA Code of Ethics is approved. auditing.
    ❖ 1973: The Certified Internal Auditor (CIA) program is established.
    ❖ Recommended Guidance describes practices for effective
    ❖ 1978: The Standards for the Professional Practice of Internal Auditing was
    implementation of The IIA’s Core Principles, Definition of Internal
    approved.
    ❖ 1989: The United Nations grants consultative status to The IIA. Auditing, Code of Ethics and Standards.
    ❖ 1995: The IIA became an official member body of the American National ▪ Implementation Guidance assists internal auditors in
    Standards Institute (ANSI) and the sole United States applying the Standards.
    representative to the International Standards Organization (ISO). ▪ Supplemental Guidance provides detailed processes and
    ❖ 1998: A record-breaking of 5,165 candidates sitting for one or more parts of procedures for internal audit practitioners.
    CIA exam. ▪
    ❖ 2000: The new Standards is introduced. PROFESSIONAL CERTIFICATIONS
    ❖ CERTIFIED INTERNAL AUDITOR (CIA)
    ❖ 2002: The Standards became mandatory guidance for all IIA Members and
    CIAs. ▪ As the only recognized internal audit certification, becoming a
    ❖ 2006: IIA Membership exceeds 120,000. Certified Internal Auditor (CIA) is the optimum
    ❖ 2007: To continue to use the statement “conducted in way to communicate knowledge, skills, and competencies to
    accordance with the International Standards for the Professional Practice of effectively carry out professional responsibilities for any audit,
    Internal Auditing”, internal audit functions that existed as of January 1, 2002 anywhere.
    must have an external quality assessment completed by January 1, 2007. ▪ According to The IIA’s 2017 Internal Audit Compensation
    Study, CIAs earn an average of $38,000 more annually than those
    without a certification. Among Canadian respondents, auditors
    performing fraud/forensic audits were found to have the highest
    median salary, while in the U.S., auditors specializing in IT were the
    top earners.
    ▪ Ultimately, becoming certified will:
    o Help you earn credibility and respect in your field.
    o Open more opportunities for advancement.
    o Increase your earning potential by as much as 51%.
    o Prove your willingness to invest in your own development.
    o Demonstrate your commitment to your profession.
    o Improve your internal audit skills and knowledge.
    o Build confidence in your knowledge of the profession.
    ❖ SPECIALTY CERTIFICATION PROGRAMS:
    ▪ Certification in Control Self-Assessment (CCSA)
    ▪ Certified Government Auditing Professional (CGAP)
    ▪ Certified Financial Services Auditor (CFSA)
    ▪ Certification in Risk Management Assurance (CRMA)
    INFORMATION SYSTEMS AUDIT AND CONTROL ASSOCIATION (ISACA) sponsors
    programs for:
    ▪ Certified Information Systems Auditor (CISA)
    ▪ Certified in Risk and Information Systems Control (CRISC)
    ▪ Certified Information Security Manager (CISM)
    ▪ Certified in the Governance of Enterprise IT (CGEIT)
    ❖ INTERNATION COUNCIL OF ELECTRONIC COMMERCE
    CONSULTANTS (EC-Council ) sponsors the Certified Ethical Hacker (CEH) program
    ❖ ASSOCIATION OF CERTIFIED FRAUD EXAMINERS (ACFE)
    sponsors the Certified Fraud Examiner (CFE) program.
    INHERENT PERSONAL QUALITIES
    ❖ Integrity
    ❖ Passion
    ❖ Work ethic
    ❖ Curiosity
    ❖ Creativity
    ❖ Initiative
    ❖ Flexibility

    You might also like