new ia ia clinic march 30, 2013. definition of internal auditing internal auditing is an...
TRANSCRIPT
New IAIA Clinic
March 30, 2013
Definition of Internal AuditingDefinition of Internal Auditing
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations . It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes
Accounting and external auditing were major mechanism
Internal auditing was developed as a separate specialism task of accountant
Focus on financial transactions (Tick and Mark)
Thousands of transactionsReport to finance director/ manager
Early stage...Early stage...
The Institute of Internal Auditors was founded in 1941in New York
Created the systematic body of knowledge (framework)
Expanded to system- based auditReview of Input, Process and OutputStill financially focus
Recent historyRecent history
Risk -based auditFocus on what really mattersControl assurance frameworkRisk ManagementCorporate GovernanceConsultancy
At presentAt present
International Professional Practices Framework (IPPF)
•Attribute Standards•Performance Standards• Implementation Standards
Code of Ethics• Integrity•Objectivity•Confidentiality•Competency
International StandardsInternational Standards
Certified Internal Auditor (CIA)Certified Fraud Examiner (CFE)Certification in Control Self-assessment (CCSA)
Certified Financial Services Auditor (CFSA)
…..and more
CertificatesCertificates
Various types of Internal Audit Various types of Internal Audit
In house teamsOutsourcePartnership of both
Types of AuditingTypes of Auditing
Financial AuditingOperational or Performance AuditingCompliance AuditingManagement AuditingInformation Technology AuditingSpecial Auditing
Integrated audit
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Internal Audit Process
Internal Audit Process
Preliminary Survey
Formal Process of workFormal Process of workPlanPrepareDocumentEvaluate ControlsTest ControlsField work – substantive testReportFollow up
Scope of audit workScope of audit work
Reliable and Completeness of Financial Information
Working systems which have impacts on performance, policy, strategy and legal issues
Asset ManagementEffectiveness, Efficiency and EconomyCompliance with laws and regulations
Benefits of being IABenefits of being IAChallengingExcitingMeet lots of peopleImprove your communication and
personal skillsBest training ground for being top
manager
Because…Because…
It’s not just about finance!!!All aspects of the organizationEveryday is differentMeet people well above your own
statusThey respect your opinionKnow more about your organization
But it’s also…But it’s also…
Need professional skillsConfidentialHard workThought provokingStressfulRe-activeTime consuming
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Competencies needed for Competencies needed for internal auditorsinternal auditorsInherent Personal QualitiesIntegrityPassionWork ethicCuriosityCreativityInitiativeFlexibility
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Knowledge and SkillsKnowledge and Skills
Expertise in more than one area Technology Communication Analytical Thinking
Thank youThank you