The document discusses the most common questions asked about internal audit. It begins by stating it will focus on the 12 most asked questions in short form, and then provide more detailed answers to interested readers. It then lists the 12 questions, providing a 1-3 sentence response to each, covering topics like the importance and roles of internal auditors, the types of audits, challenges, techniques, focus areas, checklists, risk assessment importance, and the role of internal audit in risk management.

1. Most Common Questions
About Internal Audit
Prepared by:
Ahmed Hassan
CIA,MBA

2.  In this presentation I’ll focus on the most 12 asked
questions about internal audit
 But answers will be in short terms
 Later I’ll answer each question with full detail if
someone interested in known about internal audit

3. Q1. Why are internal auditors important?
 The benefits of an internal audit to a company include:
Increase in productivity
 Internal auditing is an objective assurance and consulting
activity designed to add value and improve an organization's
operations.
 Consulting advises the management on how to improve those
systems and processes if and when necessary.

4. Q2. What are 3 types of audits?
 There are three main types of audits:
1. External Audits
2. Internal Audits
3. Internal Revenue Service (IRS) Audits

5. Q3. What do internal auditors do?
 The role of internal audit is to provide independent assurance
that an organization's risk management, governance
and internal control processes are operating effectively.
Typically this is the board of directors or the board of trustees,
the accounting officer or the audit committee.

6. Q4. Who Cannot internal audit?
 It may be recalled that the CA Institute's central council had in
its 281st meeting on October 3-5, 2008 decided that internal
auditor of an assessed, whether working with the organization
or independently practicing Chartered Accountant being an
individual or a CA firm cannot be appointed as his tax auditor

7. Q5. Is it mandatory to have an internal audit activity?
 it Is mandatory to have an internal audit activity
 Although private companies — those not publicly listed — are
not required to have internal auditing, many of
them have established an internal audit activity as one of its
core organizational governance elements.

8. Q6. What are the challenges of internal audit?
 They are critical skills and attributes needed in the internal
audit department; some of them include:
1. Integrity
2. Courage
3. Conflict management skills business knowledge
4. Ability to communicate well and many others

9. Q7. What are audit techniques?
 INTRODUCTION Audit techniques are tools, methods or
processes by means of which an auditor collects necessary
evidence to support his opinion in respect of the propositions or
assertions submitted by the client to him for his examination

10. Q8. What do internal auditors focus on?
 A business faces risks every day, and internal auditors focus
on issues that could prevent the company from meeting its
objectives. Internal audit examines a company's tolerance for
risk, its plans for detecting and mitigating risk and
communicating and monitoring risk appropriately.

11. Q9. What is audit checklist?
 The checklist for any internal quality audit is composed of a
set of questions derived from the quality management system
standard requirements and any process documentation prepared
by the company. The checklist is created in step two and used
in step three of the Five main steps in ISO 9001 Internal Audit

12. Q10. What is risk assessment in internal audit?
 Risk assessment implies an initial determination of operating
objectives, then a systematic identification of those activities or
events that could prevent a business unit from reaching its
objectives. In other words, it's an analysis of what could go
wrong.

13. Q11. Why is risk assessment important in audit?
 It helps to identify significant risks, one or more which arise
on almost every audit.
 The auditor cannot “default” to maximum risk in order to
avoid reviewing or testing controls; this assessment is a
required part of every audit.
 The process is important for every client, regardless of size or
industry

14. Q12. What is the role of internal audit in risk
management?
 The focus of internal audit and other monitoring and
review functions should be to provide assurance on the
effectiveness of risk management and not just on the
effectiveness of controls.
 Processes for the management of risk must be integrated into
an organization's system of management to be effective