Internal auditing is conducted by auditors within an organization to evaluate risk management, controls, and governance processes. It helps improve operations and prevent fraud. External auditing is conducted periodically by an independent accountant to provide reasonable assurance that financial statements fairly present the organization's financial position. It ensures compliance with laws and regulations and provides a second check of the organization's finances and internal audit. Both internal and external auditing aim to improve an organization's processes and operations.

1. INTERNAL AND EXTERNAL
AUDITING IN PRIVATE
SCHOOL
Reporter:
JONNA MAY M. BERCI

2. INTERNAL AUDIT
- an independent, objective assurance
and consulting activity designed to add
value and improve an organization's
operations. It helps an organization
accomplish its objectives by bringing a
systematic, disciplined approach to
evaluate and improve the effectiveness
of risk management, control and
governance processes.

3. INTERNAL AUDITORS

4. - Integral to the organization and provide on
going monitoring and assessment of all
activities
- Their objectives are determined by
professional standards, the board and
management
- It serves the organization by helping it
accomplish its objectives, and improving
operations, risk management, internal
controls, and governance processes.

5. - Concerned with all aspects of the
organization, both financial and nonfinancial.
- Focus on future events as a result of
their continuous review and evaluation
of controls and processes.
- Concerned with the prevention of
fraud in any form.

6. ROLES AND
RESPONSIBILITIES
OF
INTERNAL AUDIT
FUNCTION

7. -
Evaluates and provides reasonable assurance that risk
management, control, and governance systems are
functioning as intended and will enable the
organization’s objectives and goals to be met
-
Reports risk management issues and internal controls
deficiencies identified directly to the audit committee
and provides recommendations for improving the
organization’s operations, in terms of both efficient
and effective performance
- Evaluates information security and associated risk
exposures

8. - Evaluates regulatory compliance program
with consultation from legal counsel
- Evaluates the organization’s readiness in
case of business interruption
- Maintains open communication with
management and the audit committee
- Teams with other internal and external
resources as appropriate

9. - Engages in continuous education and staff development
- Provides support to the company's anti-fraud programs.
- Provides an independent appraisal function within a
school district that evaluates the efficiency and
effectiveness of the district's operations as well as
compliance with laws, rules, regulations, policies and
procedures.
- Reviews activities for efficient and effective operations.
- Makes recommendations to enhance operations and
processes.

10. EXTERNAL AUDIT
- Periodic or specific
purpose
audit
conducted by external
independent qualified
accountant.

11. - It is designed to provide
reasonable assurance that the
financial statements fairly
present the financial condition.
- Reviews internal controls for
material weaknesses and
checks for compliance with
laws, rules and regulations.

12. OBJECTIVES
OF
EXTERNAL AUDITING

13. - Determine the accounting records
are accurate and complete.
- Prepared in accordance with the
provisions of statements.
- Prepared from the accounts present
fairly the organization's financial
position, and the results of its
financial operations.

14. EXTERNAL AUDITORS

15. - Independent of the organization and
provide an annual opinion on the financial
statements
- Their objectives are set primarily by
statute.
- Provide an independent opinion on the
organization's financial statements,
annually.
- Their approach is historical in nature

16. IMPORTANCE
OF AN
EXTERNAL AUDIT

17. 1.) Ensures compliance
2.) Provides credibility.
3.) Critique internal processes
4.) Double check internal audit

18. THANK YOU!