1. Internal audit's role is to support the audit committee by providing assurance on risk management, control, and governance processes.
2. Internal audit conducts risk-based engagements by evaluating controls related to financial reporting, operations, and information systems.
3. Internal audit can take on both assurance and consulting roles related to compliance by evaluating regulatory compliance programs and making recommendations to enhance them.
Internal auditors can provide both assurance work and consulting services to an organization. There are six main types of consulting work: formal engagements, informal engagements, emergency services, assessment services, facilitation services, and remedial services. The document then outlines the typical steps and considerations for an internal audit consulting engagement, including: establishing initial terms of reference, conducting a preliminary survey, establishing suppositions, developing an audit work program, performing detailed field work, determining underlying causes, defining and evaluating options, testing selected options, discussing options with management, and reporting findings.
1. Internal audit's role is to support the audit committee by providing assurance on risk management, control, and governance processes.
2. Internal audit conducts risk-based engagements by evaluating controls related to financial reporting, operations, and information systems.
3. Internal audit can take on both assurance and consulting roles related to compliance by evaluating regulatory compliance programs and making recommendations to enhance them.
Internal auditors can provide both assurance work and consulting services to an organization. There are six main types of consulting work: formal engagements, informal engagements, emergency services, assessment services, facilitation services, and remedial services. The document then outlines the typical steps and considerations for an internal audit consulting engagement, including: establishing initial terms of reference, conducting a preliminary survey, establishing suppositions, developing an audit work program, performing detailed field work, determining underlying causes, defining and evaluating options, testing selected options, discussing options with management, and reporting findings.
This document discusses risk management processes and solutions. It outlines the typical risk management process of identifying risks, assessing them, finding solutions, and evaluating results. Common risk management solutions are discussed based on frequency and severity of losses. Key aspects covered include risk mapping and profiling, evaluating alternative solutions through cost-benefit analysis, and using tools like the traditional risk management matrix to select optimal strategies.
Corporate governance involves the procedures used by stakeholders like shareholders to oversee management's risk and control processes. The principles aim to improve frameworks for stock exchanges, corporations, and investors through concise and understandable codes. There are five key principles: protecting shareholder rights; equitable treatment of shareholders; considering stakeholder roles; ensuring timely disclosure of financial and operational information; and defining the strategic guidance and oversight responsibilities of the board. Corporate governance also exhibits seven characteristics: discipline, transparency, independence, accountability, responsibility, fairness, and social responsibility.
This document provides an overview of several IT audit methodologies: CobiT, BS 7799, BSI, ITSEC, and Common Criteria. CobiT is a framework for IT governance and control developed by ISACA that defines 34 processes across 4 domains (planning, acquisition, delivery, and monitoring). BS 7799 is a British standard focused on IT security baseline controls across 10 categories. BSI is a German manual that describes 34 security modules, 420 security measures, and 209 threats. ITSEC and Common Criteria are methodologies for evaluating the security of IT systems and products at defined assurance levels. Each methodology has different strengths in areas like scope, structure, user-friendliness, and frequency of updates
Internal audit must be established as an independent function throughout the entire company. An internal audit department needs to have standardized auditing procedures and proper organizational structure to ensure its independence, objectivity and ability to work globally. The board of directors should define the organizational structure, position within the company, audit processes, scope of audits, reporting structure, and relationships with other compliance functions to properly establish the internal audit function and maintain its necessary independence.
This document discusses the auditor's dilemma of providing a high level of confidence that all material risks have been captured and assessed. It then provides an overview of the stages in a risk-based audit framework. Finally, it outlines some tools used in conducting audits, including an audit tracker, audit report template, and audit presentation template.
This document discusses corporate fraud, including defining it, the fraud triangle of opportunity, pressure, and rationalization, prevention methods, and detection. It notes that fraud is primarily a human/behavioral problem. The fraud triangle explains how fraud occurs when someone faces pressure and rationalizes their actions when an opportunity arises. Management can influence opportunity through controls and influence pressure through employee assistance programs. Prevention methods include creating an ethical culture, implementing controls, oversight, and discipline for violations. Detection typically occurs through internal audits, tips, or investigating red flags and anomalies.
The document discusses new approaches to internal audit, including risk-based audit, continuous audit and monitoring, and IT audit. Risk-based audit focuses resources on the most risky areas by identifying, assessing, measuring, and monitoring risks. Continuous audit allows for constant supervision of processes, immediate auditing after transactions, and early warning of risks. IT audit is important because companies rely heavily on information systems that are vulnerable to risks like authentication, data integrity, privacy, and business continuity issues. The document also contrasts traditional audit approaches like detection and being function/partial with modern approaches focused on prevention, being process-based, risk-oriented, continuous and integrated.
This document discusses internal analysis, which involves identifying an organization's strengths and weaknesses by examining its resources, capabilities, core competencies, vision, mission, objectives, and strategies. Internal analysis enables firms to better understand themselves and make strategic decisions. It reviews the different types of organizational resources and capabilities that can provide competitive advantages if leveraged effectively. Various approaches to conducting internal analysis like value chain analysis and competitive strength assessment are presented.
This document discusses the fundamentals and purpose of financial statement audits. It outlines the relationship between accounting and auditing, the need for audits due to conflicts of interest and complexity, and theories like agency theory that explain the purpose of audits. The document also describes the audit process, the duties and legal requirements of auditors, what gets included in the auditor's report, and limitations of audits.
The role of auditing in the erm processSalih Islam
This document discusses the role of auditing in enterprise risk management (ERM). It provides background on ERM and defines it as a structured, consistent and continuous process for identifying, assessing, and reporting on opportunities and threats that could impact an organization's objectives. The document outlines the ERM process, including determining objectives, identifying risks, assessing impacts, and selecting risk management tools. It discusses how internal auditing can provide independent assurance of ERM effectiveness and the risk management process, while not being responsible for establishing risk appetite or implementing risk responses. It also summarizes the NAIC's risk-focused regulatory surveillance framework and risk classifications.
The internal audit department provides independent and objective assurance to help the company accomplish its objectives. It identifies risks, finds better processes, and partners with departments to solve issues. The department reports to the audit committee and develops a risk-based annual audit plan. It audits operations, departments, programs, and processes. The department also receives whistleblower reports and investigates fraud and misconduct.
Internal auditors’ roles and responsibilitiesSalih Islam
The document discusses factors for a company's board of directors to consider when deciding whether to establish an internal audit function or outsource it. It notes some areas where the SEC permits outsourcing to an independent auditor. It also lists ways an audit committee can support internal auditors, such as ensuring their independence, adequate resources, and a process to communicate directly with the committee. Finally, it provides steps for reevaluating and aligning an internal audit plan.
The document outlines four potential orientations for an internal audit department: active prevention, solution, detection, and advisory. Active prevention focuses on promoting internal controls and recommending preventive measures. Solution targets process improvements and assessing and mitigating risk. Detection examines past transactions and reports past problems. Advisory defines process improvement opportunities as a byproduct of assessments but does not focus on controls.
The document outlines an audit cycle process consisting of 5 steps: 1) Planning the audit, 2) Standard Selection, 3) Measuring Performance, 4) Sustaining Improvements, and 5) Making Improvements.
This document provides a summary of the professional experience of an Internal Audit Manager spanning from 1996 to present. It details the individual's roles and responsibilities in setting up and executing internal audit functions for several large companies across various industries. Key responsibilities included establishing audit policies and procedures, conducting annual audits of areas such as purchasing, expenses, security, and financial controls, and reporting audit findings.
This document provides a summary of the applicant's experience working in internal audit and finance roles over the past 20+ years. It details the responsibilities and projects handled in various internal audit manager, finance manager, and auditor roles at several companies, including setting up audit departments, executing annual audits of areas like purchasing, expenses, security, and more.
COSO is a private sector organization established in 1985 by five accounting associations to improve financial reporting and governance. It developed a framework for internal control that defines it as a process run by management to reasonably ensure objectives are achieved. The framework outlines five components of internal control - control environment, risk assessment, control activities, information/communication, and monitoring. It also discusses categories of objectives around operations, reporting, and compliance.
Internal control is a process designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance. It consists of five components: control environment, risk assessment, control activities, information and communication, and monitoring activities. The components work together to help ensure reliable financial reporting, effective and efficient operations, and compliance with laws and regulations. Internal control is important for both management and external auditors, and while it cannot provide absolute assurance, it helps reduce risks of failure to achieve goals.
This document discusses risk management processes and solutions. It outlines the typical risk management process of identifying risks, assessing them, finding solutions, and evaluating results. Common risk management solutions are discussed based on frequency and severity of losses. Key aspects covered include risk mapping and profiling, evaluating alternative solutions through cost-benefit analysis, and using tools like the traditional risk management matrix to select optimal strategies.
Corporate governance involves the procedures used by stakeholders like shareholders to oversee management's risk and control processes. The principles aim to improve frameworks for stock exchanges, corporations, and investors through concise and understandable codes. There are five key principles: protecting shareholder rights; equitable treatment of shareholders; considering stakeholder roles; ensuring timely disclosure of financial and operational information; and defining the strategic guidance and oversight responsibilities of the board. Corporate governance also exhibits seven characteristics: discipline, transparency, independence, accountability, responsibility, fairness, and social responsibility.
This document provides an overview of several IT audit methodologies: CobiT, BS 7799, BSI, ITSEC, and Common Criteria. CobiT is a framework for IT governance and control developed by ISACA that defines 34 processes across 4 domains (planning, acquisition, delivery, and monitoring). BS 7799 is a British standard focused on IT security baseline controls across 10 categories. BSI is a German manual that describes 34 security modules, 420 security measures, and 209 threats. ITSEC and Common Criteria are methodologies for evaluating the security of IT systems and products at defined assurance levels. Each methodology has different strengths in areas like scope, structure, user-friendliness, and frequency of updates
Internal audit must be established as an independent function throughout the entire company. An internal audit department needs to have standardized auditing procedures and proper organizational structure to ensure its independence, objectivity and ability to work globally. The board of directors should define the organizational structure, position within the company, audit processes, scope of audits, reporting structure, and relationships with other compliance functions to properly establish the internal audit function and maintain its necessary independence.
This document discusses the auditor's dilemma of providing a high level of confidence that all material risks have been captured and assessed. It then provides an overview of the stages in a risk-based audit framework. Finally, it outlines some tools used in conducting audits, including an audit tracker, audit report template, and audit presentation template.
This document discusses corporate fraud, including defining it, the fraud triangle of opportunity, pressure, and rationalization, prevention methods, and detection. It notes that fraud is primarily a human/behavioral problem. The fraud triangle explains how fraud occurs when someone faces pressure and rationalizes their actions when an opportunity arises. Management can influence opportunity through controls and influence pressure through employee assistance programs. Prevention methods include creating an ethical culture, implementing controls, oversight, and discipline for violations. Detection typically occurs through internal audits, tips, or investigating red flags and anomalies.
The document discusses new approaches to internal audit, including risk-based audit, continuous audit and monitoring, and IT audit. Risk-based audit focuses resources on the most risky areas by identifying, assessing, measuring, and monitoring risks. Continuous audit allows for constant supervision of processes, immediate auditing after transactions, and early warning of risks. IT audit is important because companies rely heavily on information systems that are vulnerable to risks like authentication, data integrity, privacy, and business continuity issues. The document also contrasts traditional audit approaches like detection and being function/partial with modern approaches focused on prevention, being process-based, risk-oriented, continuous and integrated.
This document discusses internal analysis, which involves identifying an organization's strengths and weaknesses by examining its resources, capabilities, core competencies, vision, mission, objectives, and strategies. Internal analysis enables firms to better understand themselves and make strategic decisions. It reviews the different types of organizational resources and capabilities that can provide competitive advantages if leveraged effectively. Various approaches to conducting internal analysis like value chain analysis and competitive strength assessment are presented.
This document discusses the fundamentals and purpose of financial statement audits. It outlines the relationship between accounting and auditing, the need for audits due to conflicts of interest and complexity, and theories like agency theory that explain the purpose of audits. The document also describes the audit process, the duties and legal requirements of auditors, what gets included in the auditor's report, and limitations of audits.
The role of auditing in the erm processSalih Islam
This document discusses the role of auditing in enterprise risk management (ERM). It provides background on ERM and defines it as a structured, consistent and continuous process for identifying, assessing, and reporting on opportunities and threats that could impact an organization's objectives. The document outlines the ERM process, including determining objectives, identifying risks, assessing impacts, and selecting risk management tools. It discusses how internal auditing can provide independent assurance of ERM effectiveness and the risk management process, while not being responsible for establishing risk appetite or implementing risk responses. It also summarizes the NAIC's risk-focused regulatory surveillance framework and risk classifications.
The internal audit department provides independent and objective assurance to help the company accomplish its objectives. It identifies risks, finds better processes, and partners with departments to solve issues. The department reports to the audit committee and develops a risk-based annual audit plan. It audits operations, departments, programs, and processes. The department also receives whistleblower reports and investigates fraud and misconduct.
Internal auditors’ roles and responsibilitiesSalih Islam
The document discusses factors for a company's board of directors to consider when deciding whether to establish an internal audit function or outsource it. It notes some areas where the SEC permits outsourcing to an independent auditor. It also lists ways an audit committee can support internal auditors, such as ensuring their independence, adequate resources, and a process to communicate directly with the committee. Finally, it provides steps for reevaluating and aligning an internal audit plan.
The document outlines four potential orientations for an internal audit department: active prevention, solution, detection, and advisory. Active prevention focuses on promoting internal controls and recommending preventive measures. Solution targets process improvements and assessing and mitigating risk. Detection examines past transactions and reports past problems. Advisory defines process improvement opportunities as a byproduct of assessments but does not focus on controls.
The document outlines an audit cycle process consisting of 5 steps: 1) Planning the audit, 2) Standard Selection, 3) Measuring Performance, 4) Sustaining Improvements, and 5) Making Improvements.
This document provides a summary of the professional experience of an Internal Audit Manager spanning from 1996 to present. It details the individual's roles and responsibilities in setting up and executing internal audit functions for several large companies across various industries. Key responsibilities included establishing audit policies and procedures, conducting annual audits of areas such as purchasing, expenses, security, and financial controls, and reporting audit findings.
This document provides a summary of the applicant's experience working in internal audit and finance roles over the past 20+ years. It details the responsibilities and projects handled in various internal audit manager, finance manager, and auditor roles at several companies, including setting up audit departments, executing annual audits of areas like purchasing, expenses, security, and more.
COSO is a private sector organization established in 1985 by five accounting associations to improve financial reporting and governance. It developed a framework for internal control that defines it as a process run by management to reasonably ensure objectives are achieved. The framework outlines five components of internal control - control environment, risk assessment, control activities, information/communication, and monitoring. It also discusses categories of objectives around operations, reporting, and compliance.
Internal control is a process designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance. It consists of five components: control environment, risk assessment, control activities, information and communication, and monitoring activities. The components work together to help ensure reliable financial reporting, effective and efficient operations, and compliance with laws and regulations. Internal control is important for both management and external auditors, and while it cannot provide absolute assurance, it helps reduce risks of failure to achieve goals.
4. İÇ DENETİM & İŞ GELİŞTİRME
DENETİM
Tüm yapının etkin
ve sürekli kontrolü
İŞ GELİŞTİRME
Tüm yapının
oluşturulması
GELİŞTİRME &
KONTROL
Daha etkin ve
efektif sonuç.
5. FONKSİYONEL İLİŞKİ
• Yapının kontrolü.
• Yapı içindeki unsurların
kontrolü.
• Yapı içindeki süreçlerin
kontrolü.
• Yapı çıktılarının kontrolü.
• Yapının etkin ve verimli
çalışıp çalışmadığının
kontrolü.
• Yapıyı kurma ve çalıştırma
konusunda 100%
sorumluluk.
• Süreci sonlandırmak için
belirli bir zaman ve
kaynakla çalışma.
• Kuruluş aşamasında
problemleri çözme.
• Tüm riskleri yönetme.
• Yapının kuruluş
fonksiyonları arasındaki
iletişimi sağlama.
• Yapının tüm unsurları ile
tam bilgi paylaşımı .
DEĞER