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internal audit is mandatory for all listed companies and for other companies if: 1) The paid up capital and reserves are more than Rs 50 lacks as at the commencement of the financial year , or 2) Avg annual turnover exceeds Rs 5 crore for a period of three consecutive financial yrs immediately preceeding the financial year
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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.
How does the legislation affect the internal audit process?
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.
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
What is the difference between audit and control?
An audit is performed by an outside party; a control is exercised by an internal party. A control provides assurance to management, while an audit provides assurance to outside investors.
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.
Difference between internal audit and internal control systems?
Distinguish between internal audit and internal control.
What are the six mandatory procedures of ISO 90012000?
Control of Documents Control of Records Internal Audit Control of non-conformance Corrective Action Preventive Action
What is internal audit audit evidence?
internal audit evidence is all the information the auditor relies on to arrive at any conclusion.
What is an Internal Audit?
Internal audit refers to an independent service to evaluate an organisation’s internal controls, its corporate practices, processes, and methods. An internal audit helps in securing compliance with the various laws applicable to an organisation. Section 138 of the companies act deals with the same, i.e., Internal Auditing. And states about the various classes of companies where Auditing is mandatory. Section 138 of the Companies Act 2013 Internal Audit under Section 138 of Companies Act, 2013: The internal audit assesses a company’s interior control, inclusive of its corporate governance and accounting methods. These audits pledge compliance with laws and regulations and help to maintain precise and timely financial reporting and data collection.
The impact of internal audit on organization?
Internal audit reveals to management whether internal control procedures are duly followed or not.
What is the turnover limit for statutory audit?
Statutory audit is mandatory by statue hence it does not have any turnover limit.
What the Difference Between Internal Audit and Interim Audit?
An internal audit is conducted by an unbiased party within the company. An interim audit (which is an audit conducted before the end of the fiscal year) can be conducted by someone outside the company.
Is pre audit is a internal audit function?
Yes pre audit is the responsibility of internal audit department as external auditors are only auditing the activities after end of fiscal year when everything is complete.
What is Internal audit an external audit?
Internal audit is conducted by people from within the company. This is also known as first party audit. External audit is conducted by an independent party. Second or third party audits are external audits.
What is the difference between internal audit and interim audit?
Internal audit is the name of department who performs the audit while interim audit is the audit which other than statutary audit and it is perform during the fiscal year and it is performed to help the final audit procedures which is done after the completion of fiscal year.
When there is a statutory audit introduction of internal audit is not necessary at all?
false
