chapter 9 - managing the internal audit function-1

chapter 9 - managing the internal audit function-1 - Ch 9:...

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Ch 9: MANAGING THE INTERNAL AUDIT FUNCTION POSITIONING THE INTERNAL AUDIT FUNCTION IN THE ORGANIZATION On a senior management level in order to o Independently evaluate mgt’s assessment of the org’s system of internal controls o Assess the org’s ability to achieve business objectives and manage, monitor, and mitigate risks associated with the achievement of those objectives CAE must effectively manage the internal audit activity to ensure it adds value to the org. Internal Audit is effectively managed when: o Results form IA work achieves the purpose and responsibility included in the internal audit charter. o IA conforms with the definition of IA charter and standards. o Individuals who are part of IA demonstrate conformance with the code of ethics and the standards. CAE creates a charter to fulfill the responsibilities, this charter must support the audit committee’s charter CAE also responsible for establishing and maintaining independence, objectivity, proficiency, and due professional care within the internal audit function CAE must not assign work that will result in conflict of interest and bias, should also obtain info concerning conflict of interests and bias Reviewing internal audit work before releasing. Independence and Objectivity IIA Standards 1120 Independence and IIA Standards 1120: Individual Objectivity. Also look at the requirements regarding impairment to independence and objectivity. Proficiency and Due Professional Care IIA Standards 1200 and 1210 PLANNING Look at IIA Standards 2010.A1 and 2010.C1 CAE responsible for creating an operational budget and allocating recourses in a manner designed to accomplish the annual internal audit plan The annual plan is developed through identifying and prioritizing possible audit entities responsible for mitigating risks to levels acceptable by the organizations BOD and senior management. CAE then determines which specific business units and processes are responsible
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This note was uploaded on 11/30/2010 for the course ACC acc621 taught by Professor Sydor during the Spring '10 term at Ryerson.

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chapter 9 - managing the internal audit function-1 - Ch 9:...

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