Internal Audits Flashcards
What is an internal Audit?
Independent Function to assess risk.
What is a CAE?
Chief Audit Executive.
Is it possible for Internal Audit teams to contract out to third parties?
Practice Exercise – Certifications Yes, they may contract with specific expertise or business resources to assist with individual audits.
How is SOX different from internal audit?
Internal Audit Scope is broader than Internal controls over financial reporting (ICFR).
Is the nature of SOX to be a (Compliance Function ) or the (Eyes and ears of the board?)
The Compliance function
Is the nature of Internal Audit a (Compliance Function ) or the (Eyes and ears of the board?)
The eyes and ears of the board.
Is the approach of SOX control based testing, or risk based testing?
Control Based Testing.
Is the approach of Internal Audit control based testing, or risk based testing
Risk-Based testing approach.
Is there a requirement for companies to have internal Audits?
No Some have to, dependent if they are on the NYSE or another large group like that.
Does internal Audit test Sox?
Yes
What are the 5 objectives by phase for Internal Audits?
Planning, collection, testing, reporting, monitoring.
The first phase of internal Audit is “Audit planning and scoping” what does that entail?
Conduct interviews with project stakeholders. Develop project plan, timeline, staffing, and model.
The second phase of internal Audit is “Data Requests and collection” what does that entail?
Design audit program guide and test, Submit documentation requests, and sign off on audit program guide test plans.
The third phase of internal Audit is “Fieldwork and testing” what does that entail?
Perform audit based on program guide, draft final audit report.
The fourth phase of internal Audit is “Conclusion and reporting” what does that entail?
Finalize audit report, Conduct closing meeting with audit stakeholders
The fifth phase of internal Audit is “Follow up and monitoring” what does that entail?
Manage status reporting and project planning, follow-up on open audit findings through upon remediation procedures.
What is the institute of internal auditors?
Brings guidelines and standards to internal auditors.
What is the biggest challenge to internal audits
How much value they can give back to the organization.
What are work papers?
Documents that are created by the internal audit department. They vary based on the type of audit being performed. They can very from company to company.
What are the differences between Internal Audit and SOX?
Sox is just one type of audit on the audit plan, and the Wdesk solution works on different types of audits.
What is an audit manual?
Templates consolidated into one project.
What are the 3 unique stages of the audit solution?
Planning, Testing, and reporting.
Where would data and results show in Workiva?
In your reports tab.
Can audit information be linked to documents and presentations?
Yes.
