Week 6 - Internal Audit, Role and Function

Question 1

What is the definition of the role and function of internal auditors?

Answer 1

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helps bring an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance process

Question 2

Why is there conflict about internal auditing being described as ‘independent’?

Answer 2

They are part of the organisation that pays their wages

Question 3

What assurance do internal auditors give?

Answer 3

That the controls within the company are working and that the risks are being managed

Question 4

Who do internal auditors provide assurance to?

Answer 4

Audit committee and then the board of directors

Question 5

How can internal auditors provide consultancy?

Answer 5

Internal auditors become specialists in the controls of the company and thus have great knowledge that management can fall back on