InternalandGovernmentalFinancialAuditing(英文版)(45页).ppt

Internal and GovernmentalFinancial Auditing andOperational Auditing Chapter 25 Internal Auditing Relationship of Internaland External Auditors INTERNAL AUDITING DEFINED An independent, objective assurance and consulting activity Designed to add value and improve an organizations operations Helps an organization accomplish its objectives Brings a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.?? INTERNAL AUDITING VS EXTERNAL AUDITING Internal Auditor Company Employees Serves needs of one company Focuses on IC to ensure future events meet corporate goals Directly concerned with fraud prevention Reviews activities continually Independent of activities audited, but not of management External Auditor External contractors Serves multiple 3rd parties Focus on the accuracy of Financial Statements (F/S) Focused on fraud in context of detection of material misstatements in F/S Reviews records supporting financial statements (periodically) Independent of company ROLE OF INTERNAL AUDIT Ensure reliability and integrity of information Safeguard assets Ensure compliance with policies and regulations Achieve organizational objectives and goals Improve operational economy and efficiency Identify areas of business risk Prevent and detect fraud Coordinate audit activities with external auditors IIA Rules of Conduct 1. Integrity?-- Internal auditors:? 1.1. Shall perform their work with honesty, diligence, and responsibility.? 1.2. Shall observe the law and make disclosures expected by the law and the profession.? 1.3. Shall not knowingly be a party to any illegal activity, or engage in acts that are discreditable to the profession of internal auditing or to the organization.? 1.4. Shall respect and contribute to the legitimate and ethical objectives of the organization.?? 2. Objectivity?-- Internal auditors:? 2.1. Shall not participate in any activity or relationship that may impair o