Topics: Auditing, Audit, Internal audit Pages: 10 (2629 words) Published: March 27, 2013
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Consolidated Ore and Mineral Company


1.Write the mission statements for the major objectives of the internal audit function at COMCO.

Mission statements:
Our mission is to be the 'miner of choice' for all stakeholders including contractors, the communities in which we operate and our shareholders by using the latest technology in order to prevent wasted natural resources in our work environment. As a professional judgement with using our knowledge, we will provide an independent estimate of COMCO Company’s financial, operational and control activities. We will report on the adequacy of internal controls, the accuracy of transactions and the level of compliance with company policies and government laws. Also we will provide analyses, recommendations, counsel and information relevant to activities reviewed. Our Objectives:

* Verify the existence of COMCO Company assets and ensure that proper safeguards are maintained to protect them from loss * Determine the level of compliance with COMCO Company policies and procedures, laws and regulations. * Assist all level of management in the effective discharge of their duties by providing objective appraisals, reviews and analyses of the activities reviewed with recommendations for improvements. * Determine the effectiveness and efficiency of audited entities in accomplishing their mission and identify operational opportunities for cost saving and revenue. * Evaluate the accuracy, effectiveness and efficiency of COMCO Company’s electric information and processing systems. * Review and appraise the adequacy and application of accounting, financial and operating controls. * Discover the degree of reliability of accounting and other information recorded by all sections of the company. * Investigate fiscal misconduct.

2. Describe the extent the internal audit function will be involved in the different types of audit activity that may be required.

The internal audit function is responsible to monitor the performance of an entity's controls. When obtaining an understanding of internal control, the auditor should obtain an understanding of the internal audit function sufficient to identify the audit activities that are relevant to planning the audit. The extent of the procedures necessary to obtain this understanding will vary, depending on the nature of those activities.

Internal audit activities will encompass the following areas:
-In the new environment, management can no longer rely on the work of the independent auditor as a basis for certifying the effectiveness of internal controls over financial reporting.
- The auditor considers many factors in determining the nature, timing, and extent of auditing procedures to be performed in an audit of an entity's financial statements. One of the factors is the existence of an internal audit function. This section provides the auditor with guidance on considering the work of internal...
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