Internal audit function to perform primarily

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internal audit function to perform primarily operational and nonaudit activities, aspreviously mentioned, effectively rater the function unable to provide management withan evaluation of the design adequacy and operational effectiveness controls since theylack the objectivity to independently evaluate the organization’s operations and offerimpartial suggestions for improvement. When deciding where to place the internal auditfunction, ideally the function will be positioned high enough withinthe organization withdirect access to the board audit committee to allow conformity with the IIA’srequirements and recommendations.-Internal audit fuctions are placed on a senior management level giving the fuction thevisibility, ability, and responsibility to :a.Independently evaluate management’s assessment of the organization’s system ofInternal Control.
b.Assess the organization’s ability to achieve business objectives and manage,monitor, and mitigate risks associated with the achievement of those objectives.-Faktor utama dalam membentuk Internal Audit fuction adalah pengendalian internalyang berkaitan dengan kualitas kinerja perusahaan. -Posisi IA dalam perusahaan seharusnya berada diluar struktur perusahaan agar lebihIndependen, namun di Indonesia posisi IA berada di bawah CEO, hal ini berisiko

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