Risk based audit is an approach used in auditing to determine what areas in a business have a high risk of causing misstatements in the financial report. This method is also used to know what auditing procedures should be used in order to have an efficient and effective financial outcome.
RBIA is one of many opinions provided to the board, and audit committee, on corporate governance. The main objective of RBIA is to assess risk of each area of business so that high risk areas are identified, measured and controlled on priority basis.The RBIA would help the banks/financial institutions in mitigating the current risks, anticipate areas of potential risks and protect them.
Audit Committe enhance communication between Internal Audit, External Audit and CFO. Audit Committe assist directors to avoid litigatio risk.
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.
planning proper staffing :- recruitment(qualified staffs), retention, training engagement letter internal control system
3rd Party Audit - Independent Audit 2nd Party Audit- Customer Audit 1st Party Audit- Internal Audit
An audit is considered a risk assessment, therefore these terms are interchangeable. And audit plan can have various meanings, some consider this to be an annual audit plan which includes all the audits that will occur within a companies calendar year. Others consider this to be the plan for undertaking a specific audit. Its all in how you define the words, audit plan, audit schedule, audit check list.
A risk base internal audit is latest approach to ensure best practices aiming at maximizing the impact of audit by focusing on the major strategy ,regulatory, financial and operation risk that confront an organization while internal audit is traditional independent examination of financial and operation of an organization to ensure economic,effective and efficiency utilization of an organizations resources
Audit Committe enhance communication between Internal Audit, External Audit and CFO. Audit Committe assist directors to avoid litigatio risk.
The internal audit function is to ensure that an organization meets its objectives through a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control, and governance
Regulatory Compliance is increasing and becoming more challenging every day. With RBI extended mandate and guidelines for above class of banking or finance entities to Audit management system having a Risk Based Internal Audit (RBIA) Is Imperative to manage compliance risk effectively. Our Risk Based Internal Audit Management (RBIA) solution integrates the entire working of Audit department within single software solution, reducing manual efforts required and making audits more impactful for Non-banking financial companies and Urban Co-operative banks. The solution will cover the following actions: β Will adopt a risk-based audit methodology Create Audit Calendar and assign Auditors to respective audits *Enabling entire planning and Auditors allocation within the system Offer Audit checklist to enable auditors capture their observations, attach working papers etc. in one Enable follow up on issues and actions Automated reporting for Higher Management and Audit committees Adopt Claptekβs efficient & transparent Global software, with the expertise of audit & risk management professionals and 20+ years of experience in Risk & Audit domain.
Can not answer this question - reword it.
Distinguish between internal audit and internal control.
There is a great site that can tell you lots of information about the internal audit exam and how to prepare. You can visit this link: http://www.theiia.org/certification/certified-internal-auditor/ and is based on computer testing.
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.
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.
internal audit evidence is all the information the auditor relies on to arrive at any conclusion.
Internal audit reveals to management whether internal control procedures are duly followed or not.
Financial statement level risks are risks of materials misstatement of the financial statements. These are the same for both audit of financial statements and audit of internal control.