Intro to internal audit Flashcards
def: internal auditing
independent, objective assurance and consulting activity designed to add value and improve an organization’s operations
how does internal auditing help an organization?
by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes
the objective of financial statement audit is
auditor to express an opinion about whether the financial statement are prepared in all material respects with a framework (IFRS, ASPE)
internal auditors report to
the board of directors and senior management who are within the organization and governance structure
objectives of internal auditing
evaluate and improve the effectiveness of governance, risk management and control processes
internal auditing provides its users with
assurance that helps them fulfill their duties to the organization and its stakeholders
the coverage provided by internal audit is
all categories of risk, their management and reporting
internal auditors have a responsibility for improvement?
YES it is fundamental to the purpose of internal auditing
how is the responsibility for improvement done?
advising, coaching and facilitating in order to not undermine the responsibility of management
examples of internal audit activities (3)
- evaluating controls and advising managers at all levels
- evaluating risks
- analyzing operations
examples of external audit activities
evaluating financial statements to ensure they are consistent with IFRS such as annual reports audit or quarterly reports review
annual reports are _____
audited
quarterly reports are ______
reviewed
weaknesses in the case of credit authorization
- tone at the top very relaxed
- no procedure to approve new or existing clients
- marion does all the tasks that should be separated with cash
which three tasks should be separated with cash
cash handling, recording and reconcile
