3Independence and Objectivity of internal auditing

3Independence and Objectivity of internal auditing -...

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Unformatted text preview: Independence and Objectivity of internal auditing 1.independence case of Internal auditing Independence is a most important factor that decides internal audit functions exertion , and it is the most basic element of ex ist ence of internal auditing . CIIA successively enacted internal auditing standards and guidelines. But seldom state- owned enterprises that I know enforced those standards and guidelines very well, most of them are similar to nominal---- deaf ears. Internal auditing department in my company has been established for many years, internal auditors and leaders have be changed frequently. However, the independence of the internal auditing has been never established. The setup of internal audit department hasnt been independent, internal audit department had ever been set in as follows : (1)Set in planning agency ; (2)Set in the enterprise management agency; (3)Set in the group headquarters; (4)Now set in economic operations department. It is very hard for Internal auditing to work : i.It is very hard for Internal auditors to audit the other relevant departments on the same level ,so there are few departments that internal auditors can audit. ii. There are a lot of auditing projects that internal auditors cannot carry out. iii.An audit report was approved by several levels leadership. At last internal auditors don't know how to rewrite. At last nobody want to come to the internal auditing department. It seemed that purpose of establishing internal audit department is to cope with checking the list company. **The most important job in my internal audit department is Project Cost Audit , which is the earliest implementation project since the establishment of the internal audit department, provided with two cost engineers . There are a lot of construction projects that internal auditors carry out terminative auditing. Internal auditing reduces expenditure about one million yuan to do this job every year, the highest amount reached more than two million yuan, Which has been recognized by su perio r leadership . But with the external accounting firm and project cost audit firm springing up like mushrooms , there are some abnormal malicious competition in project cost audit, the intermediary agencies adopt the measures of giving kickbacks to make leader outsource periodically project cost audit to them ,which has been audited by internal auditing department . Intermediary agencies are purely commercial behavior in order to charge more, They will...
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This note was uploaded on 06/13/2011 for the course ACCOUNTING 1204 taught by Professor Chang during the Summer '11 term at Nanjing University.

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3Independence and Objectivity of internal auditing -...

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