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audit committee is part of board, and it showcases the audit observations and present it to board. board comprises of external directors so a fair and transparency is ensured.
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What are the advantages in having an audit committee?
the audit committee communicate with internal audit, external audit and CFO on behalf of the company.
What is audit committee?
Audit Committe enhance communication between Internal Audit, External Audit and CFO. Audit Committe assist directors to avoid litigatio risk.
What is the differencebetween internal and external auditors?
External Audit means which seeks to test the underlying transactions that form the basis of the financial statements. Internal audit is a function that, although operating independently from other departments and reports directly to the audit committee.
Who performs an operational audit?
internal auditors perform an operational audit as part of their assurance services they render to oganisations.
Who Perform operational audit?
internal auditors perform an operational audit as part of their assurance services they render to oganisations.
What resources does the American Institute of Certified Public Accountants' Audit Committee Effectiveness Center provide?
The components of the center are the Audit Committee Toolkits (corporate, not-for-profit, and government), Audit Committee Matching System, Audit Committee e-Alerts, and a bank of materials containing information for and about audit committees.
Difference between internal audit and internal control systems?
Distinguish between internal audit and internal control.
Who is responsible for making sure an organization's internal control system is adequate?
The board of directors and its audit committee have responsibility for making sure the internal control system within the organization is adequate
What is internal audit audit evidence?
internal audit evidence is all the information the auditor relies on to arrive at any conclusion.
Can audit committee protect minority shareholder interest?
Most of Audit Committee INED are friends of Chairman, so they are not really independent!
The impact of internal audit on organization?
Internal audit reveals to management whether internal control procedures are duly followed or not.
Can cost accountant do the internal audit of the company?
Cost Accountant can very well do the internal audit of the company. Since internal audit is the 'seeing us inside' and also the scope is the operations and compliance part of the activities, cost accountants have expertise in conducting the same. They are the 'most fit' professionals for conducting internal audit of manufacturing operations, processes and activities and assessing the risk involved in each area. The new Companies Act, as such, recognises cost accountants along with other finance professionals for award of internal audit assignment. And internal audit has been made mandatory for certain class of companies. But, the cost accountants who are engaged in cost audit assignment of the company cannot be engaged for internal audit of the same company as the engagement would affect objectivity and there may be conflict of interest.
