Transcript Mr. Ky Sophan_Internal Audit Roles

By: Mr. Ky Sophan
Finance and Administration Manager
CDPO
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Contents:
1. What is the internal audit?
2. Internal Audit Structure in
Organisation
3. Internal Auditor Roles and
Responsibility
4. Different between Internal and
External Audit Functions
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1. What is the internal audit?
Internal auditing is
- an independent,
- objective assurance and
- consulting activity designed to
add value and improve an
organisation's operations.
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1. What is the internal audit?
It helps an organisation accomplish
its objectives by:
- bringing a systematic,
- disciplined approach to evaluate
and improve the effectiveness of
risk management, control, and
governance processes.”
Financial Practical Guideline – page 36.
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2. Internal Audit Structure in
Organisation
-Internal
auditor report directly to the Audit
Committee,
- Audit Committee has role in hiring, firing,
evaluating and compensating the Internal
Auditor.
- The Audit Committee’s increasing role
with regard
to the internal audit is being
undertaken to help ensure the internal
auditor’s "independence" and objectivity.1
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2. Internal Audit Structure in
Organisation
Board of Directors
Monitor, direct,
delegates to &
create
Executive Team
Audit Committee
Reports to
Internal
Audit Team
Source: Finance Working Group
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3. Internal Auditor Roles and
Responsibility
1.
Evaluates and provides reasonable assurance on risk
management, control, and governance systems
2.
Reports risk management issues and internal controls
3.
Provides recommendations for improving the
organisation's operations
4.
Evaluates information security and associated risk
exposures
5.
Evaluates regulatory compliance program
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3. Internal Auditor Roles and
Responsibility
6.
Evaluates the organisation's readiness
7.
Maintains open communication with management
and the audit committee
8.
Teams with other internal and external resources
9.
Engages in continuous education and staff
development
10.
Provides support to the organisation’s anti-fraud
programs.
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4. Different between Internal and
External Audit Functions
INTERNAL AUDITOR
Organization’s
independent employee
Serves needs of the
Organization
Reviews all operations
and controls in an
organization for
efficiency, economy,
and effectiveness
EXTERNAL AUDITOR
An Independent
Contractor
Serves third parties
Reviews on financial
statement, operational
compliance
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4. Different between Internal and
External Audit Functions
INTERNAL AUDITOR
Prevention of fraud
in any form or extent in any
activity audited
EXTERNAL AUDITOR
Independently concerned with
the prevention and detection
of fraud in general, but is
directly
concerned
when
financial statements may be
materially affected
Independent
of
the Independent of management
activities audited, but is and the board of directors both
ready to respond to the in fact and in mental attitude
needs and desires of all
elements of managements
Review
activities Reviews records, supporting
continually
financial statements
periodically --- usually once a
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