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  • Internal Audit III

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    Akshay Patni
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    Internal auditing consists of a continuous and critical review of financial and operating activities conducted by a staff of full-time salaried auditors. The objective of internal audit is to determine whether other internal control systems are well designed and properly operated by reviewing activities, confirming liabilities, analyzing internal checks, preventing and detecting fraud, and reviewing organizational activities. Key elements of internal auditing include independence, specific audit planning, evidence, and reporting. Advantages include early detection of errors and fraud, assurance of accurate books and accounts, and assistance to statutory auditors. Disadvantages can include extra costs and possibility of biased opinions or inefficiency.

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    audit

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    Internal auditing consists of a continuous and critical review of financial and operating activities conducted by a staff of full-time salaried auditors. The objective of internal audit is to determine whether other internal control systems are well designed and properly operated by reviewing activities, confirming liabilities, analyzing internal checks, preventing and detecting fraud, and reviewing organizational activities. Key elements of internal auditing include independence, specific audit planning, evidence, and reporting. Advantages include early detection of errors and fraud, assurance of accurate books and accounts, and assistance to statutory auditors. Disadvantages can include extra costs and possibility of biased opinions or inefficiency.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    68 views6 pages

    Internal Audit III

    Uploaded by

    Akshay Patni
    Internal auditing consists of a continuous and critical review of financial and operating activities conducted by a staff of full-time salaried auditors. The objective of internal audit is to determine whether other internal control systems are well designed and properly operated by reviewing activities, confirming liabilities, analyzing internal checks, preventing and detecting fraud, and reviewing organizational activities. Key elements of internal auditing include independence, specific audit planning, evidence, and reporting. Advantages include early detection of errors and fraud, assurance of accurate books and accounts, and assistance to statutory auditors. Disadvantages can include extra costs and possibility of biased opinions or inefficiency.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    Definition

    Internal auditing consists of a continuous and critical review of financial and operating activities by a staff of auditors functioning as full time salaried employees. W.B. Megis

    AAS - 7
    Internal audit is a separate part of internal control system. The objective of internal audit is to determine whether other internal control systems are well designed and properly operated. Internal auditor is appointed by the management and is part of overall organisation system of internal control.

    Objectives:
    1. 2. 3. 4. 5. 6. 7. 8.

    9. 10.

    Accuracy in accounts Adoption of standard accounting practices Proper authority on assets Confirmation of liabilities Analysis of internal check system Prevention and detection of fraud Provision for new ideas Review of the operation of internal control system Special investigation Review of organisational activities

    Elements:
    1. 2. 3. 4. 5. 6.

    7.
    8.

    Independence Staffing Relationships Due care Specific audit planning Systems control Evidence Reporting

    Advantages:
    1.

    2. 3.

    4. 5. 6. 7.

    Early detection and prevention of errors and frauds Continuous review of ICS Assurance regarding accuracy of books & a/cs Preparation of interim a/cs Early completion of annual audit Periodic physical verification Assistance to statutory auditor

    Disadvantages:
    1. 2. 3.

    4.
    5.

    Extra cost Biased opinion Possibility of becoming ineffective Possibility of distortion Inefficient staff members

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