Independence and objectivity in Internal Audit

Topics: Auditing, Internal audit, Financial audit Pages: 5 (1143 words) Published: February 10, 2014


2.
Slide #1

The complex and dynamic environment in auditing can be challenging and requires highest level of professional proficiency. Therefore internal audit staff must have professional abilities to carry out the audit functions. Our internal audit department is committed to assist each staff members to meet that responsibilities.

Slide #2

Speaker’s notes
Independence is the foundation of internal audit, the internal audit activity must be free from interference in determining the scope of internal auditing , performing work and communicating results. Independence can be achieved with frequent communication and unrestricted access to Chief Executive and Senior Management.. With greater independence internal auditors could coordinate audit coverage more effectively and leverage available time and talent. Objectivity is the mental attitude where the internal auditor perform audit work without compromising for any reason. unbiased Menta

Any threat to independence and objectivity will be managed at individual, operational and functional level.

Slide #3
Speaker’s notes

Members of our Internal audit team are from different desciplines. Our team consist of six professional accountant, engineer and a stastician who can demonstrate proficiency in terms of key knowledge, skill and abilities to carry out internal audit assurance engagement Communication skills, problem identification and solution skills and keeping up to date with industry and regulatory changes and professional standards It is crucial to identify, prioritize and devlop competencies – defining them is most important because they are the skill sets internal auditors need to make sure assurance engagements are the best they can be.

Slide #4
Speaker’s notes
According to IIA standard 1210 Internal audit activity collectively must possess or obtain the knowledge , skill and competencies. The members of our Internal audit teams have professional Certification and qualification. The audit team consist of an Engineer and statistician who have expertise on complex issue of developing and marketing the electronic product.

Operation will be sought for competent advice and assistance during internal audit for issues relating developing and marketing the electronic product. Frequent communication between all levels in the organization will surely increase the competency.

Out internal audit team members have sufficient knowledge to evaluate the risk and establish controls.

Slide #5
Speaker’s notes
With input from senior management the priorities of internal audit activity will be identified and designed according to the organization goals . Risk management plan will identify and evaluate the areas exposed to risk and establish controls. The internal audit activity will monitor the risk management systems and controls and promote continious improvement. Periodic report will be presented to the management on Internal audit activity’s purpose, authority, responsibility, and performance against the plan.

Slide #6
Speaker’s notes

With proper planning of audit activity and continous monitoring and training , our internal audit team can perform professional audit work for Newlands. Members of our audit team has the proficiency and knowledge required to carry out effective internal audit with independence and objectivity. The internal audit team has experience on company’s activity and can provide more cost effective solution in consulting and assuarance engagement.

3.

MEMORANDUM

Date:June 26,2013
To:Chief Executive Officer
From:Vice President, Internal Audit
Re:Independence and objectivity

Independence and objectivity in internal auditing is essential to maintain the value of the organization. The institute of Internal Auditors define “Internal auditing is an independent, objective assurance and consulting activity...
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