The document outlines the purpose and process of internal audits. It discusses how internal audits help organizations by providing independent and objective evaluations that add value and improve operations. Internal audits help identify problems before external audits, increase external audit efficiency, and provide governance advice. The importance of internal audits is explained as analyzing data and processes to ensure reliable reporting, compliance, and asset protection. Risk management and corporate governance are also roles of internal audits. Finally, the document details the typical timeline an internal audit would follow from planning to follow-up.

1. Time for Internal Audits!
Prepared by National Audit Team

2. Internal Audits = …?
• Independent consultants
– Unrestricted evaluation of organization
– Gives objective, unbiased advice to management
• Goal:
– Add value
– Improve operations of organization

3. Why Internal Auditors?
• Internal Audits helps existing External Auditing
– Find and fix problems before External Auditing
– Increase efficiency of External Audit
– Able to provide advice on governance and other
issues anytime

4. IMPORTANCE OF INTERNAL AUDITS

5. Internal Control
• Organization effectiveness and efficiency ↑
– Analyze data and processes
– Provide recommendations and insights
• Ensure reliable financial/management report
• Compliance with laws
• Safeguarding of Assets

6. Risk Management
• Gather and analyze information
• Identify and evaluate strategic risk from year
plans

7. Corporate Governance
• Report critical management control issues
– e.g. Acts not compliant with local laws or National
Compendium
• Coordinate with External Auditors
– Ensure stakeholders receive effective information

8. Timeline of Internal Audit
Notification
• Inform management of upcoming audit
• Checklist of items (e.g. org. charts/financial statements)
Planning
• Determine focus areas
• Engagement risk assessment Determine which areas
most risky
Opening
Meeting
• MC and persons responsible (e.g. LCVP F for finance audits)
• Raise areas of concerns for Internal Audits
• Determine time frame

9. Fieldwork
• Auditing work begins
• Managements meet with Auditors
Communication
• Keep management informed
• Allow management to discuss solutions
Report drafting
• Management receive draft audit report

10. Mgmt
Response
• Whether MC agrees with problems observed
• Management draws up action plans
Closing
Meeting
• Discuss audit report
• Review management responses to audit
Report
Distribution
• Reports distributed to National Plenary and External
Auditors
Follow-up
• Ensure management action plans are implemented
• Inform MC if further actions needed

11. NATIONAL AUDIT COMING SOON!