Internal Audit (Strat/gov)

Front 1

When using the work of internal auditors, the external auditor must evaluate:

Back 1

1) objectivity

(organization structure, policies, procedures)

2) competency

(Background of internal audit function)

3) approach

(Whether they apply systematic and disciplined approach)

CONCLUDE

Front 2

Objectivity

Back 2

Formal documentation that defines their role and reporting structure

Internal audit should report to board, not the controller

Internal audit should have unrestricted access

Should be objective

Front 3

Competency

Certified internal auditor program

Back 3

Internal audit should have education and training necessary for role

Hire only competent internal auditors with have the required experience

Review work thoroughly and timely

Front 4

Approach

Back 4

Internal audit should have an annual audit plan, approved by board that details the audits to be performed. Board feedback.

All reports should be reviewed

Hire additional internal auditors to ensure all work can be completed

Front 5

Internal audit committee role:

Back 5

Provide oversight of internal controls

Review financial statements on a quarterly basis

Review issues as they are submitted, not on a periodic basis.

Whistleblower complaints should be reviewed by an impartial third-party.

Front 6

Qualities of strong audit committee

Back 6

Independent

Competent

Experienced

Adequately staffed

Reports to the board of it exists