Internal Audit Operations Flashcards
Are internal audit operations different from business operations?
No
Basic Management functions
Planning
Organizing
Directing
Controlling
Define Management
It is the attainment of organizational goals in an effective and efficient manner through planning, organizing, directing, and controlling.
2 Important points:
- 4 steps
- attainment of goals in an effective and efficient manner.
General Management Planning
Defines where the organization wants to be and how to get theere.
Define goals and task needed to meet goals
General Management - Organizing
Follows planning
Reflects how organization tries to accomplish the plan
Assignment of tasks, authority, resources
General Management - Directing
Use of influence to motivate employees to achieve organizational goals
General Management - Controlling
Monitoring employee’s activities is the organization on track to meet goals, make corrections when necessary.
Internal Audit - Planning
Develop and periodically revise a comprehensive audit plan
Ensure that audit coverage for all identified, auditable areas within the audit universe is appropriate for the size and complexity of the organizations activities.
Accomplished either through a multi-year plan with plan revised annually or utilize a framework to evaluate risks annually, focusing on most significant risks.
It is common practice to audit business functions on a…
cycle-based plan every 3 years or 4 tears audit cycle.
But high-risk areas should be audited at least every year or even more often.
What should be considered in the audit planning process?
Should consider risk assessment
What does the internal audit plan also identify?
The types of audits to be performed in terms of assurance and consulting audits - operational audits, performance audits, IT audits, compliance audits, big data audits.
Internal Audit - Organizing
How to structure the audit function
How to staff the audit function with management levels and job positions
Job descriptions for the audit function
An audit manual is developed describing audit policies, procedures, and continuing education guidelines.
Internal Audit - Directing
Leading the entire audit department
Motivating employees to deliver audit work products and services
Internal Audit - Monitoring
Formal continuous monitoring practices as part of the audit functions risk assessment processes to support adjustments to the audit plan or audit universe as changes occur.
