11 Internal Audits Flashcards
What is an Audit?
On-site verification activity, such as inspection or examination of a process or quality system, to ensure compliance to requirements
What is an Internal Audit?
Provides independent assurance that an organisation’s risk management, governance & internal control processes are operating effectively
What are the core principals of an Internal Audit?
- Demonstrates Integrity
- Demonstrates competence & due professional care
- Is objective & free from undue influence (independent)
- Aligns with the strategies, objectives and risks of organisation
- Is appropriately positioned & adequately password
- Demonstrates quality and continuous improvement
- Communicates effectively
- Provides risk-based assurance
- Is insightful, proactive, and future-focused
- Promotes organisational improvement
What are the problems associated with Internal Audits?
Big companies
Directors monitoring
How do they know that the policies, and designed processes, checking etc. takes place?
How do they know if their company data is correct?
How do they know the assets / resources are safe?
What are the purposes of Internal Audits?
(Help a company section or manager)
Independent assessment
Guidance on issues, problems & processes
Reporting / recognising excellence and good elements
Covers wide range of activities: IT procurement Processes Transactions Security Business functions Areas of compliance
What are the tools used for Internal Audits?
Monitoring systems, transaction processing systems
Security systems, IDS (Intrusion Detection Systems)
Specialist auditing tools (simulation data, testing systems, interrogation systems)
What is involved in the output of Internal Audits?
Audit report (lots of report writing, usually confidential) Confidence in internal processes for monitoring, checking etc. (good governance) Identifying problem areas where change is needed, what needs to be done Guidance & support Provides foundation for external audits
