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Interanl Audit and the Internal Control System

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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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 ...

Solution Summary

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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