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The two pieces of legislation that have probably had the greatest effect on internal audit are the Foreign Corrupt Practices Act of 1977, which changed the reporting relationships and authority of internal audit and Sarbanes Oxley Act of 2002 which requires certain tests be performed on publicly traded companies. Both have changed the function of internal audit. Many other pieces of legislation also affect internal audit, some are industry specific some are more broad based.
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What is audit procedures?
Audit procedure is the process followed while auditing an entity which may include:Confirm the audit assignmentComplete appropriate planningExecute actual internal audit workDevelop a report
3 general types of quality audits?
3rd Party Audit - Independent Audit 2nd Party Audit- Customer Audit 1st Party Audit- Internal Audit
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 Difference between HR audit And Financial Audit?
Under HR Audit, audit of HR procedures and process is done while in financial audit, audit of finance related matters are done.
What is difference product audit and process audit?
Process Audit :-Auditor will concentrate on process at each stage & its relevant parameter's process parameters like temperature, pressure, speed etc. Along with this he audits operator competency level , enviroment condition under which he operates the machine,5S,safety etc... Product Audit:-Auditor will concentrate only on output of the process & its relavant parameters.
What is the process of preparing an audit?
The process of preparation for audit depends on the kind of audit to be performed, it's objective and scope. The scope of the audit is key to the planning process. The planning required or statutory audit is different from internal audit; it also differs from forensic audit?
What is the Quality?
Quality audit is the process of systematic examination of a quality system carried out by an internal or external quality auditor or an audit team.
What is exactly an audit committee and is it any different from internal audit department?
An audit committee is a subgroup of a company's board of directors responsible for overseeing financial reporting, internal controls, and the audit process, ensuring transparency and accountability. It typically consists of independent members who provide oversight of the internal audit department and external auditors. In contrast, the internal audit department is a dedicated team that evaluates and improves the effectiveness of risk management, control, and governance processes within the organization. While the audit committee provides oversight, the internal audit department performs the actual audits and assessments.
Why do you have internal audit charter in the internal control?
An internal audit charter is essential in internal control as it outlines the purpose, authority, and responsibility of the internal audit function within an organization. It establishes the framework for the internal audit's operations, ensuring alignment with organizational goals and compliance with regulations. Additionally, the charter fosters independence and objectivity, allowing auditors to perform their roles effectively while providing assurance to management and the board on the adequacy of internal controls. Overall, it serves as a guiding document that enhances accountability and transparency within the internal audit process.
What is the auditor quality?
Quality audit is the process of systematic examination of a quality system carried out by an internal or external quality auditor or an audit team.
What is audit procedures?
Audit procedure is the process followed while auditing an entity which may include:Confirm the audit assignmentComplete appropriate planningExecute actual internal audit workDevelop a report
Difference between internal audit and internal control systems?
Distinguish between internal audit and internal control.
What do quality auditor offers?
Quality audit is the process of systematic examination of a quality system carried out by an internal or external quality auditor or an audit team.
What is internal audit audit evidence?
internal audit evidence is all the information the auditor relies on to arrive at any conclusion.
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.
The impact of internal audit on organization?
Internal audit reveals to management whether internal control procedures are duly followed or not.
Who determines internal auditors scope of work?
The scope of work for internal auditors is typically determined by the audit committee or the board of directors, often in collaboration with the internal audit management team. They assess the organization's risks, objectives, and compliance requirements to establish priorities and focus areas for the internal audit function. Additionally, the internal auditors themselves may contribute to defining their scope based on their expertise and understanding of the organization's operations. Ultimately, the goal is to ensure that the internal audit process addresses key risks and adds value to the organization.
