The Importance Of Internal Audit Function

1079 Words5 Pages
The Internal Audit Function 'The audit committee should review and monitor the adequacy of the internal audit activities. Where there is no internal audit work, the review committee group ought to consider every year whether there is a requirement for an internal audit and make a suggestion to the board, and the explanations behind the nonappearance of such a capacity ought to be clarified in the relevant area of the annual report. Internal audit can play an important assurance role in an organization's governance processes, especially in the zone of hazard administration and control. In numerous associations, the desires set upon internal audit have expanded and the capacity is being depended on to make a critical commitment. It is important…show more content…
The Code of Ethics is based on the following four principles: • Integrity • Objectivity • Confidentiality • Competency In a few cases, having IAF staff expressly pronounce yearly that they would follow the standards of Code of Ethics has been referred to as a best practice. Quality of audit staff Some IAFs were advised to provide further consideration in their training plans of staffs to develop certain knowledge, expertise and skills. Every individual audit professional’s responsibilities is to maintain and upgrade their competencies. Internal Auditors as Consultants Internal auditors can provide a variety of consulting services to the company’s board of directors, the audit committee, management, and other personnel at all levels. 1) Consulting services to the board of directors and audit committee. 2) Consulting services to management. 3) Internal auditor training services. Authorities and Responsibilities of Internal Auditors The internal audit function should have full and free access to the company’s audit committee; unrestricted access to the company’s records, documents, property, and personnel; and authority to discuss initiatives, policies, and procedures regarding risk assessment, internal controls, compliance, financial reporting, and governance processes with management and other corporate governance
Open Document