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Interanl Audit and the Internal Control System

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While not commonly discussed in the realm of risk management, the internal control system of an internal audit is a valuable tool for the risk manager. Discuss your perception of a risk manager leveraging an internal audit function in a risk management program.

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While not commonly discussed in the realm of risk management, the internal control system of an internal audit is a valuable tool for the risk manager. This solution discusses the notion of a risk manager leveraging an internal audit function in a risk management program and also includes an illustrative example.

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Interesting question! Let's take a closer look through discussion and real life examples, one of which is attached.

RESPONSE:

1. While not commonly discussed in the realm of risk management, the internal control system of an internal audit is a valuable tool for the risk manager. Discuss your perception of a risk manager leveraging an internal audit function in a risk management program.

Internal Control Defined: Internal control is defined as a process effected by management and staff that provides reasonable assurance that the following objectives will be achieved:

· Effectiveness and efficiency of operations,
· Reliability of financial reporting, and
· Compliance with applicable laws and regulations (1)

Risk assessment is one component of internal control system, which refers to the process of identifying and ...

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