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organizations doing Internal auditing

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Visit The Institute of Internal Auditors' website (www.theiia.org). What is internal auditing?
1. Why should an organization have internal auditing?
2. What should be the reporting lines for the chief audit executive (CAE)?
3. How does internal auditing maintain its independence and objectivity?
4. What is enterprise risk management (ERM) and what role in it does internal auditing play?
5. Is it mandatory to have an internal audit activity?
6. What standards guide the work of internal audit professionals?
7. What are the competencies needed to excel as an internal auditor?
8. Discuss the changing role of internal auditors.
9. Discuss how can the internal audit process add value to organizations.

Part 2
1.Why should the GAO want each cooperative board to employ an internal auditor?
2.Typically, what is a governing board's responsibility for internal controls? Be specific.
3. Do you agree with the GAO's recommendation? Why or why not?

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1. Why should an organization have internal auditing?
Internal auditing is a key component to corporate governance and works in conjunction with the board of directors, senior management and external auditing. Internal auditors provide the audit committee member with key information and assistance in proving an objective assurance on governance, risk management and control processes (The information was obtained at https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=7&cad=rja&ved=0CGUQFjAG&url=http%3A%2F%2Fwww.theiia.org%2Fdownload.cfm%3Ffile%3D83632&ei=0xRyUaV7ydrZBePUgLgP&usg=AFQjCNGW0oYtNu513vpkPCyQoGWV8s4guA&sig2=dltVdsCJIiQqipL2r3sQBA&bvm=bv.45512109,d.aWM).
2. What should be the reporting lines for the chief audit executive (CAE)?
The IIA's Internation Standards for the Professional Practice of Internal Auditing Standards require that the chief audit executive (CAE) report directly to the chief executive officer. The IIA recommends that the chief audit executive functionally reports to the audit committee, board of directors or other appropriate governing authority (The information was obtained at http://som.csudh.edu/depts/adjunct/mabohebeish/ACC%20336/PA%20ADVISORY/Practice_Advisory_1110-2.pdf).

3. How does internal auditing maintain its independence and objectivity?
The audit committee members play a crucial role in supporting the independence of internal auditing and ensuring that the internal audit team has the resources to provide an appropriate level and quality of information. The best practice is for internal auditing to have direct ...

Solution Summary

The expert examines organizations doing internal auditing.

See Also This Related BrainMass Solution

Internal Auditor Staff: Importance of Function and Costs

In a latest seminar on internal audit wherein a group of corporate representatives of corporations (privately and publicly held corporations), several issues were raised by the attendees, a number of which are listed below:

1. Establishing an internal audit function/department is not a legal requirement. Consequently, it is an optional function.

2. In an era of economic difficulties, we need to cut back on overhead such as internal audit functions. Internal audit department does not bring any revenue to the corporation. It is a mere cost center. A company should not establish the function unless it will increase the earnings of the company.

3. If we (corporations) have a legal requirement to have an internal audit function, then staffing it with one person will suffice the requirement.

4. Internal audit function is to compare policy to actual transactions; consequently the internal auditor does not have to be collage graduate.

5. To minimize our cost, we may perform one audit a year, and outsource it to a job shopper.

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