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Why is it necessary for auditors to assess internal internal control processes?
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∙ 10y ago
why is it necessary for the auditor to assess the internal contol processess
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∙ 10y ago
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The Challenge of Internal Audit Jobs?
Internal auditors have the responsibility of making sure that their company's financial records are in order. They evaluate the controls that govern the company's income and expense accounts to make certain they are sufficient. These accounts must meet company and government requirements. Company requirements are based on company policy; government requirements are drawn out through various laws and procedures. Internal auditors must assure that the controls are sufficient to eliminate error or fraud. They prepare the company's tax records for the government. Dealing with overall budgets, internal auditors have also become computer savvy with a handle over the various computer software packages that aid in organizing and reporting accounts. Internal auditors generally have no responsibilities for producing strategy based on accounts or company projections. Internal auditors in the United States become Certified Internal Auditors by passing the Institute of Internal Auditors four-part examination. The examination is based on such topics as risk and control, governance concepts, fraud elements, tools for audit engagement, financial accounting, information technology concepts, and competitive analysis and strategies. After passing the test, the internal auditor must decide in which one of four areas he or she would like to receive a certificate. One can qualify for the Certified Internal Auditor certificate; the Certified Government Auditing Professional certificate; the Certified Financial Services Auditor certificate or receive Certification in Control Self-Assessment. The IIA expects internal auditors to have bachelor degrees and to follow the IIA Code of Ethics. The IIA standards are promoted and recognized across the globe, and many international internal auditors obtain their certification to practice in their countries from the IIT. Internal auditors have a medium salary of $54,000. After experience, the upper levels of internal auditors command $94,100. The number of jobs is expected to increase by 22 percent through 2014. By obtaining an MBA in accounting, internal auditors can reach a much higher salary level. The MBA degree will give the auditor necessary skills to interpret and adapt new laws to their work. Internal auditors have privileged status positions. It is important that they have a good knowledge of the law to protect their access to and knowledge of sensitive and confidential information.
What is the purpose of an internal audit?
Main purpose of internal audit is to establish internal control system as well as procedures which ensures that all departments works as per policies and procedures established by management of business as well as to help external auditors in conducting external audit.
What is work through test in audit test?
In audit there is no such thing as a work through test. What exists is a walk through test. This test- Walk through test is a test for the auditors to determine the reliability of the client's accounting and internal control procedures.
Difference between internal audit and internal control systems?
Distinguish between internal audit and internal control.
What are procedures for test of control for audit?
Tests of controls consist of procedures directed toward the evaluation of the effectiveness of the design and implementation of internal controls (AU 319).when tests of controls look at design issues, the auditors evaluates whether the control has been properly designed to prevent or detect material misstatement.The flowing audit procedures are examples of tests of controls: Inquires of appropriate management, supervisor, and staff personnel.Inspection of document, report, and electronic files.Observation of the application of specific Controls.Re performance of the application of the control by the auditors. etc.
What is the mandate of internal auditors?
Internal auditors identify control problems and develop solutions for improving and strengthening internal controls. Internal auditors are concerned with the entire range of an organization's internal controls
What is internal control?
In 1992 COSO issued Internal Control--An Integrated Framework for companies, their managements, and their auditors.
When a firm uses internal auditors it is adhering to which one what internal control elements?
monitoring
How does the Institute of Internal Auditors define internal controls?
The definition of internal control included in SAC is: a set of processes, functions, activities, sub-systems, and people who are grouped together or consciously segregated to ensure the effective achievement of objective
What is the objective of Internal Control System and explain briefly internal control framework?
In 1992 COSO issued Internal Control--An Integrated Framework for companies, their managements, and their auditors.
What is an external auditors report?
external auditors focus primarily on controls that affect financial reporting. External auditors have a responsibility to report internal control weaknesses (as well as reportable conditions about internal control)
What is internal control evaluation questionneirs?
They are handy lists of specific questions for auditors or industry employees to ask which will uncover internal control deficiencies.
Who maintains quality control of an accounting information system?
Quality control of AISs involves many activities, including the services of both external auditors (public accountants) and internal auditors.
What is Evaluating internal controls?
They are handy lists of specific questions for auditors or industry employees to ask which will uncover internal control deficiencies.
What services and products has the Institute of Internal Auditors developed to support membership needs?
These include the Control Self-Assessment Center, Certification in Control Self-Assessment, Certified Governmental Auditor Program, Board of Environmental Auditors Certification
What is an Internal auditing?
According to The IIA which oversees the profession of internal auditors, it is defined as an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.
The Challenge of Internal Audit Jobs?
Internal auditors have the responsibility of making sure that their company's financial records are in order. They evaluate the controls that govern the company's income and expense accounts to make certain they are sufficient. These accounts must meet company and government requirements. Company requirements are based on company policy; government requirements are drawn out through various laws and procedures. Internal auditors must assure that the controls are sufficient to eliminate error or fraud. They prepare the company's tax records for the government. Dealing with overall budgets, internal auditors have also become computer savvy with a handle over the various computer software packages that aid in organizing and reporting accounts. Internal auditors generally have no responsibilities for producing strategy based on accounts or company projections. Internal auditors in the United States become Certified Internal Auditors by passing the Institute of Internal Auditors four-part examination. The examination is based on such topics as risk and control, governance concepts, fraud elements, tools for audit engagement, financial accounting, information technology concepts, and competitive analysis and strategies. After passing the test, the internal auditor must decide in which one of four areas he or she would like to receive a certificate. One can qualify for the Certified Internal Auditor certificate; the Certified Government Auditing Professional certificate; the Certified Financial Services Auditor certificate or receive Certification in Control Self-Assessment. The IIA expects internal auditors to have bachelor degrees and to follow the IIA Code of Ethics. The IIA standards are promoted and recognized across the globe, and many international internal auditors obtain their certification to practice in their countries from the IIT. Internal auditors have a medium salary of $54,000. After experience, the upper levels of internal auditors command $94,100. The number of jobs is expected to increase by 22 percent through 2014. By obtaining an MBA in accounting, internal auditors can reach a much higher salary level. The MBA degree will give the auditor necessary skills to interpret and adapt new laws to their work. Internal auditors have privileged status positions. It is important that they have a good knowledge of the law to protect their access to and knowledge of sensitive and confidential information.
