Internal Audits

Meaning- Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations.

Internal Audit Assignment involves the following steps:

•Establishing and communicating the scope and objectives of the Audit to members of management.

•Describing the key risks facing the business activities within the scope of the Audit.

•Identifying management practices in the five components of control used to ensure that each key risk is properly controlled and monitored.

•Developing and executing a risk-based sampling and testing approach to determine whether the most important management controls are operating as intended.

•Reporting issues and challenges identified and negotiating action plans with the management to address these problems.

•Following-up on reported findings at appropriate intervals. Internal Audit Departments maintain a follow-up database for this purpose.

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