
CERTIFIED AWARD AUDITING
Criterion 6
AUDIT – INTERNAL AUDIT
The objective of the internal audit service is to provide specialized and scientifically based services to the management of the company for the proper and efficient performance of its duties by providing analyses, assessments, recommendations and observations on the company’s operations and transactions.
Audit function
- Independence of auditors
- The Internal Audit Committee and Audit Committee
- Separation of duties between the internal and external auditor
- Specialized audit staff
Audit Service
- Qualifications of auditors – Requirements for their certification
- Auditors’ professional code of conduct
- Use of auditors by the company for consultancy & training
- Involvement of internal auditors in the preparation of financial statements
Auditing techniques
- Specific auditing plan per case (accounting errors, omissions, abuses, miscalculations, incorrect debit entries, etc.)
- Training of auditors from an external source
- Monitoring of risk points/procedures (red flags)
- Gathering audit needs from stakeholders / Top Mgt
Investigation of fraud
- Documented policies (Plan – Do – Check – Act)
- Fraud prevention procedures
- Transparency throughout the fraud detection & reporting process
- Sanctions in proven fraud cases
Audit reporting
- Frequency of audit reports
- Monitoring of problem resolution –
- Audit reports on “Pay for Performance”
- Audit reports on company projects